Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 16, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2020 | ||
Entity Central Index Key | 0000097210 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | TERADYNE, INC | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 10.6 | ||
Trading Symbol | TER | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Current Reporting Status | Yes | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-06462 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-2272148 | ||
Entity Address, Address Line One | 600 RIVERPARK DRIVE | ||
Entity Address, City or Town | NORTH READING | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01864 | ||
City Area Code | 978 | ||
Local Phone Number | 370-2700 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 166,694,772 | ||
ICFR Auditor Attestation Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 914,121 | $ 773,924 |
Marketable securities | 522,280 | 137,303 |
Accounts receivable, less allowance for doubtful accounts of $2,034 and $1,736 in 2020 and 2019, respectively | 497,506 | 362,368 |
Inventories, net | 222,189 | 196,691 |
Prepayments and other current assets | 259,338 | 188,598 |
Total current assets | 2,415,434 | 1,658,884 |
Property, plant and equipment, net | 394,800 | 320,216 |
Operating lease right-of-use assets, net | 54,569 | 57,539 |
Marketable securities | 117,980 | 104,490 |
Deferred tax assets | 87,913 | 75,185 |
Retirement plans assets | 17,468 | 18,457 |
Other assets | 9,384 | 10,332 |
Acquired intangible assets, net | 100,939 | 125,480 |
Goodwill | 453,859 | 416,431 |
Total assets | 3,652,346 | 2,787,014 |
Current liabilities: | ||
Accounts payable | 133,663 | 126,617 |
Accrued employees' compensation and withholdings | 220,321 | 163,883 |
Deferred revenue and customer advances | 134,662 | 104,876 |
Other accrued liabilities | 77,581 | 70,871 |
Operating lease liabilities | 20,573 | 19,476 |
Contingent consideration | 9,106 | |
Income taxes payable | 80,728 | 44,200 |
Current debt | 33,343 | |
Total current liabilities | 700,871 | 539,029 |
Retirement plans liabilities | 151,140 | 134,471 |
Long-term deferred revenue and customer advances | 58,359 | 45,974 |
Long-term contingent consideration | 7,227 | 30,599 |
Deferred tax liabilities | 10,821 | 14,070 |
Long-term other accrued liabilities | 19,352 | 19,535 |
Long-term operating lease liabilities | 42,073 | 45,849 |
Long-term incomes taxes payable | 74,930 | 82,642 |
Debt | 376,768 | 394,687 |
Total liabilities | 1,441,541 | 1,306,856 |
Commitments and contingencies (Note M) | ||
Mezzanine equity: | ||
Convertible common shares | 3,787 | |
SHAREHOLDERS' EQUITY | ||
Common stock, $0.125 par value, 1,000,000 shares authorized, 166,123 and 166,410 shares issued and outstanding at December 31, 2020 and 2019, respectively | 20,765 | 20,801 |
Additional paid-in capital | 1,765,323 | 1,720,129 |
Accumulated other comprehensive income (loss) | 33,516 | (18,854) |
Retained earnings (accumulated deficit) | 387,414 | (241,918) |
Total shareholders' equity | 2,207,018 | 1,480,158 |
Total liabilities, convertible common shares and shareholders' equity | $ 3,652,346 | $ 2,787,014 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, less allowance for doubtful accounts | $ 2,034 | $ 1,736 |
Common stock, par value | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 166,123,000 | 166,410,000 |
Common stock, shares outstanding | 166,123,000 | 166,410,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues: | ||||
Total revenues | [1],[2] | $ 3,121,469 | $ 2,294,965 | $ 2,100,802 |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 1,335,728 | 955,136 | 880,408 | |
Gross profit | 1,785,741 | 1,339,829 | 1,220,394 | |
Operating expenses: | ||||
Selling and administrative | 464,769 | 437,084 | 390,669 | |
Engineering and development | 374,964 | 322,824 | 301,505 | |
Acquired intangible assets amortization | 30,803 | 40,147 | 39,191 | |
Restructuring and other | (13,202) | (13,880) | 15,232 | |
Total operating expenses | 857,334 | 786,175 | 746,597 | |
Income from operations | 928,407 | 553,654 | 473,797 | |
Non-operating (income) expenses: | ||||
Interest income | (5,982) | (16,990) | (20,458) | |
Interest expense | 24,182 | 22,224 | 21,780 | |
Other (income) expense, net | 9,192 | 22,648 | 4,674 | |
Income before income taxes | 901,015 | 525,772 | 467,801 | |
Income tax provision | 116,868 | 58,304 | 16,022 | |
Net income | $ 784,147 | $ 467,468 | $ 451,779 | |
Net income per common share: | ||||
Basic | $ 4.72 | $ 2.74 | $ 2.41 | |
Diluted | $ 4.28 | $ 2.60 | $ 2.35 | |
Weighted average common shares—basic | 166,120 | 170,425 | 187,672 | |
Weighted average common shares—diluted | 183,042 | 179,459 | 192,605 | |
Product [Member] | ||||
Revenues: | ||||
Total revenues | $ 2,690,906 | $ 1,887,674 | $ 1,729,621 | |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 1,157,476 | 782,047 | 727,138 | |
Service [Member] | ||||
Revenues: | ||||
Total revenues | 430,563 | 407,291 | 371,181 | |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 178,252 | $ 173,089 | $ 153,270 | |
[1] | Includes $10.0 million, $8.4 million and $12.0 million in 2020, 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” | |||
[2] | Revenues attributable to a country are based on location of customer site. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 784,147 | $ 467,468 | $ 451,779 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment, net of tax of $0, $0, $0 | 48,903 | (10,991) | (28,442) |
Available-for-sale marketable securities: | |||
Unrealized gains (losses) on marketable securities arising during period, net of tax of $1,629, $1,659, $(722), respectively | 5,839 | 6,015 | (2,110) |
Less: Reclassification adjustment for (gains) losses included in net income, net of tax of $(665), $(192), $(21), respectively | (2,365) | (690) | 1,337 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | 3,474 | 5,325 | (773) |
Defined benefit pension and post-retirement plans: | |||
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax $(2), $(43), $(71), respectively | (7) | (148) | (245) |
Other comprehensive income (loss) | 52,370 | (5,814) | (29,460) |
Comprehensive income | $ 836,517 | $ 461,654 | $ 422,319 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
Unrealized gains (losses) on marketable securities arising during period, net of tax | 1,629 | 1,659 | (722) |
Reclassification adjustment for (gains) losses included in net income, net of tax | (665) | (192) | (21) |
Amortization of prior service credit, net of tax | $ (2) | $ 43 | $ 71 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Common Shares | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment [Member] |
Balance at Dec. 31, 2017 | $ 1,953,646 | $ 24,444 | $ 1,638,413 | $ 18,776 | $ 272,013 | |||
Balance, Shares at Dec. 31, 2017 | 195,548 | |||||||
Net issuance of common stock under stock-based plans | 129 | $ 201 | (72) | |||||
Net issuance of common stock under stock-based plans (in shares) | 1,613 | |||||||
Stock-based compensation expense | 33,304 | 33,304 | ||||||
Repurchase of common stock | (832,356) | $ (2,705) | (829,651) | |||||
Repurchase of common stock (in shares) | (21,639) | |||||||
Cash dividends | (67,367) | (67,367) | ||||||
Net income | 451,779 | 451,779 | ||||||
Other comprehensive income | (29,460) | (29,460) | ||||||
Reclassification of unrealized gains on equity securities | (3,125) | 3,125 | ||||||
Reclassification of tax effects resulting from the Tax Reform Act | 769 | (769) | ||||||
Balance at Dec. 31, 2018 | 1,522,354 | $ 12,679 | $ 21,940 | 1,671,645 | (13,040) | (158,191) | $ 12,679 | |
Balance, Shares at Dec. 31, 2018 | 175,522 | |||||||
Net issuance of common stock under stock-based plans | 10,622 | $ 223 | 10,399 | |||||
Net issuance of common stock under stock-based plans (in shares) | 1,784 | |||||||
Stock-based compensation expense | 38,085 | 38,085 | ||||||
Repurchase of common stock | (491,202) | $ (1,362) | (489,840) | |||||
Repurchase of common stock (in shares) | (10,896) | |||||||
Cash dividends | (61,355) | (61,355) | ||||||
Net income | 467,468 | 467,468 | ||||||
Other comprehensive income | (5,814) | (5,814) | ||||||
Balance at Dec. 31, 2019 | 1,480,158 | $ 20,801 | 1,720,129 | (18,854) | (241,918) | |||
Balance, Shares at Dec. 31, 2019 | 166,410 | |||||||
Net issuance of common stock under stock-based plans | $ 154 | 4,696 | 4,850 | |||||
Net issuance of common stock under stock-based plans (in shares) | 1,230 | |||||||
Stock-based compensation expense | 44,285 | 44,285 | ||||||
Repurchase of common stock | (88,465) | $ (190) | (88,275) | |||||
Repurchase of common stock (in shares) | (1,517) | |||||||
Cash dividends | (66,540) | (66,540) | ||||||
Convertible common shares | (3,787) | (3,787) | ||||||
Convertible common shares (in shares) | 3,787 | |||||||
Net income | 784,147 | 784,147 | ||||||
Other comprehensive income | 52,370 | 52,370 | ||||||
Balance at Dec. 31, 2020 | $ 2,207,018 | $ 20,765 | $ 1,765,323 | $ 33,516 | $ 387,414 | |||
Balance, Shares at Dec. 31, 2020 | 3,787 | 166,123 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 | $ 0.09 | $ 0.09 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 784,147 | $ 467,468 | $ 451,779 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | |||
Depreciation | 80,119 | 70,834 | 67,415 |
Amortization | 46,624 | 49,821 | 45,809 |
Stock-based compensation | 44,906 | 37,897 | 33,577 |
Provision for excess and obsolete inventory | 17,534 | 15,244 | 11,242 |
Retirement plans actuarial losses (gains) | 10,284 | 8,176 | (3,316) |
Contingent consideration adjustment | (23,271) | (19,257) | 987 |
Deferred taxes | (15,688) | (9,456) | 28,340 |
(Gains) losses on investments | (7,898) | (6,033) | 3,494 |
Investment impairment | 15,000 | ||
Other | 1,557 | 766 | 1,083 |
Changes in operating assets and liabilities, net of businesses acquired: | |||
Accounts receivable | (129,451) | (70,440) | (17,938) |
Inventories | (8,438) | (27,408) | (29,498) |
Prepayments and other assets | (64,418) | (23,784) | (58,402) |
Accounts payable and other accrued expenses | 73,167 | 49,279 | 13,693 |
Deferred revenue and customer advances | 39,974 | 39,313 | 13,379 |
Retirement plans contributions | (5,382) | (5,086) | (4,334) |
Income taxes | 25,169 | (13,584) | (80,429) |
Net cash provided by operating activities | 868,935 | 578,750 | 476,881 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (184,977) | (134,642) | (114,379) |
Proceeds from government subsidy for property, plant and equipment | 7,920 | ||
Purchases of marketable securities | (900,196) | (662,701) | (918,744) |
Proceeds from maturities of marketable securities | 479,678 | 611,927 | 1,270,439 |
Proceeds from sales of marketable securities | 35,006 | 105,586 | 846,122 |
Proceeds from life insurance | 546 | 2,912 | 1,126 |
Purchase of investment and acquisition of businesses, net of cash acquired | 149 | (79,742) | (169,474) |
Net cash (used for) provided by investing activities | (569,794) | (156,660) | 923,010 |
Cash flows from financing activities: | |||
Issuance of common stock under stock purchase and stock option plans | 28,527 | 29,312 | 20,973 |
Repurchase of common stock | (88,465) | (500,000) | (823,478) |
Dividend payments | (66,482) | (61,305) | (67,322) |
Payments related to net settlement of employee stock compensation awards | (23,014) | (14,741) | (20,023) |
Payments of contingent consideration | (8,852) | (27,615) | (13,571) |
Net cash (used for) provided by financing activities | (158,286) | (574,349) | (903,421) |
Effects of exchange rate changes on cash and cash equivalents | (658) | (569) | 439 |
Increase (decrease) in cash and cash equivalents | 140,197 | (152,828) | 496,909 |
Cash and cash equivalents at beginning of year | 773,924 | 926,752 | 429,843 |
Cash and cash equivalents at end of year | 914,121 | 773,924 | 926,752 |
Cash paid for: | |||
Interest | 6,435 | 5,996 | 6,205 |
Income taxes | 106,577 | 81,410 | 72,811 |
Non-cash investing activities: | |||
Capital expenditures incurred but not yet paid: | $ 3,666 | $ 4,068 | $ 2,537 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2020 | |
The Company | A. THE COMPANY Teradyne, Inc. (“Teradyne”) is a leading global supplier of automation equipment for test and industrial applications. Teradyne designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s industrial automation products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing, logistics and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automatic test equipment and industrial automation products and services include: • semiconductor test (“Semiconductor Test”) systems; • storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); • wireless test (“Wireless Test”) systems; and • industrial automation (“Industrial Automation”) products. On February 26, 2018, Teradyne acquired Energid Technologies Corporation (“Energid”) for a total purchase price of approximately $27.6 million. Energid’s technology enables and simplifies the programming of complex robotic motions used in a wide variety of end markets, ranging from heavy industry to healthcare, utilizing both traditional robots and collaborative robots. Energid was merged with Universal Robots which is part of Teradyne’s Industrial Automation segment. On April 25, 2018, Teradyne acquired Mobile Industrial Robots ApS (“MiR”), a Danish limited liability company. MiR is a leading maker of collaborative autonomous mobile robots (“AMRs”) for industrial applications. The total purchase price was approximately $197.8 million, which included cash paid of approximately $145.2 million and $52.6 million in fair value of contingent consideration payable upon achievement of certain thresholds and targets for revenue and earnings before interest and taxes through 2020. Contingent consideration for 2018 was $30.8 million and was paid in March 2019. Contingent consideration for 2019 was $8.9 million and was paid in March 2020. MiR is included in Teradyne’s Industrial Automation segment. On January 30, 2019, Teradyne acquired all of the issued and outstanding shares of Lemsys SA (“Lemsys”) for a total purchase price of approximately $9.1 million. Lemsys strengthens Teradyne’s position in the electrification of vehicles, solar and wind power, and industrial applications. Lemsys is included in Teradyne’s Semiconductor Test segment. On June 3, 2019, Teradyne invested $15.0 million in RealWear, Inc. (“RealWear”). RealWear, a private company, develops and sells advanced wearable technology including industrial, hands-free, head-mounted augmented reality devices that make the workplace safer and more productive. On February 28, 2020, RealWear’s debt holder demanded repayment of its $25.0 million loan to RealWear. As a result, in the fourth quarter of 2019, Teradyne recorded an impairment charge of $15.0 million to reduce its investment in RealWear to zero as of December 31, 2019. On November 13, 2019, Teradyne acquired 100% of the membership interests of AutoGuide, LLC (“AutoGuide”), a maker of high payload AMRs, an emerging and fast growing segment of the global forklift market. The total purchase price was approximately $81.6 million, which included cash paid of approximately $57.6 million and $24.0 million in fair value of contingent consideration payable upon achievement of certain performance targets, extending potentially through 2022. At December 31, 2020, the maximum contingent consideration that could be paid is $100.2 million. AutoGuide’s AMRs are used for material transport of payloads up to 4,500 kg in manufacturing, warehouse and logistics applications. These products complement MiR’s lower payload products. AutoGuide is included in our Industrial Automation segment. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | B. ACCOUNTING POLICIES The consolidated financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Certain prior years’ amounts were reclassified to conform to the current year presentation. Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, accounts receivable, income taxes, deferred tax assets and liabilities, pensions, warranties, contingent consideration liabilities, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and our markets. Management is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of February 22, 2021, the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results may differ significantly from these estimates under different assumptions or conditions. Revenue Recognition Revenue from Contracts with Customers Teradyne adopted Accounting Standard Codification (“ASC”) 606 “Revenue from Contracts with Customers” on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. In accordance with ASC 606, Teradyne recognizes revenues, when or as control is transferred to a customer. Teradyne’s determination of revenue is dependent upon a five step process outlined below. • Teradyne accounts for a contract with a customer when there is written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. • Teradyne periodically enters into contracts with customers in which a customer may purchase a combination of goods and services, such as products with extended warranty obligations. Teradyne determines performance obligations by assessing whether the products or services are distinct from the other elements of the contract. In order to be distinct, the product or service must perform either on its own or with readily available resources and must be separate within the context of the contract. • Teradyne considers the amount stated on the face of the purchase order to be the transaction price. Teradyne does not have material variable consideration which could impact the stated purchase price agreed to by Teradyne and the customer. • Transaction price is allocated to each individual performance obligation based on the standalone selling price of that performance obligation. Teradyne uses standalone transactions when available to value each performance obligation. If standalone transactions are not available, Teradyne will estimate the standalone selling price through market assessments or cost plus a reasonable margin analysis. Any discounts from standalone selling price are spread proportionally to each performance obligation. • In order to determine the appropriate timing for revenue recognition, Teradyne first determines if the transaction meets any of three criteria for over time recognition. If the transaction meets the criteria for over time recognition, Teradyne recognizes revenue as the good or service is delivered. Teradyne uses input variables such as hours or months utilized or costs incurred to determine the amount of revenue to recognize in a given period. Input variables are used as they best align consumption with benefit to the customer. For transactions that do not meet the criteria for over time recognition, Teradyne will recognize revenue at a point in time based on an assessment of the five criteria for transfer of control. Teradyne has concluded that revenue should be recognized when shipped or delivered based on contractual terms. Typically, acceptance of Teradyne’s products and services is a formality as Teradyne delivers similar systems, instruments and robots to standard specifications. In cases where acceptance is not deemed a formality, Teradyne will defer revenue recognition until customer acceptance. Performance Obligations Products Teradyne products consist primarily of semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage test systems and instruments, circuit-board test and inspection systems and instruments, wireless test systems and industrial automation products. Teradyne’s hardware is recognized at a point in time upon transfer of control to the customer. Services Teradyne services consist of extended warranties, training and application support, service agreements, post contract customer support (“PCS”) and replacement parts. Each service is recognized based on relative standalone selling price. Extended warranty, training and support, service agreements and PCS are recognized over time based on the period of service. Replacement parts are recognized at a point in time upon transfer of control to the customer. Teradyne does not allow customer returns or provide refunds to customers for any products or services. Teradyne products include a standard 12-month warranty. This warranty is not considered a distinct performance obligation because it does not obligate Teradyne to provide a separate service to the customer and it cannot be purchased separately. Cost related to warranty are included in cost of revenues when product revenues are recognized. As of December 31, 2020 and 2019, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2020 2019 (in thousands) Maintenance, service and training $ 77,654 $ 63,815 Customer advances, undelivered elements and other 63,438 56,358 Extended warranty 51,929 30,677 Total deferred revenue and customer advances $ 193,021 $ 150,850 Product Warranty Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance 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.The balance below is included in other accrued liabilities: Amount (in thousands) Balance at December 31, 2017 $ 8,200 Acquisition 41 Accruals for warranties issued during the period 13,045 Accruals related to pre-existing warranties 921 Settlements made during the period (14,298 ) Balance at December 31, 2018 7,909 Acquisition 14 Accruals for warranties issued during the period 14,106 Accruals related to pre-existing warranties 4,026 Settlements made during the period (17,059 ) Balance at December 31, 2019 8,996 Accruals for warranties issued during the period 28,490 Accruals related to pre-existing warranties 821 Settlements made during the period (21,674 ) Balance at December 31, 2020 $ 16,633 When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2017 $ 24,438 Deferral of new extended warranty revenue 23,753 Recognition of extended warranty deferred revenue (20,769 ) Balance at December 31, 2018 27,422 Deferral of new extended warranty revenue 23,271 Recognition of extended warranty deferred revenue (20,016 ) Balance at December 31, 2019 30,677 Deferral of new extended warranty revenue 41,694 Recognition of extended warranty deferred revenue (20,442 ) Balance at December 31, 2020 $ 51,929 Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $131.1 million and $143.6 million during 2020 and 2019, respectively. Factoring fees for the sales of receivables are recorded in interest expense and are not material. Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. On a quarterly basis, Teradyne uses consistent methodologies to evaluate all inventories for net realizable value. Teradyne records a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process. The inventory valuation is based upon assumptions about future demand, product mix and possible alternative uses. Investments Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “ Investments—Debt and Equity Securities • The length of time and the extent to which the market value has been less than cost; • The financial condition and near-term prospects of the issuer; and • The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2020 and 2019. As defined in ASC 820-10, “ Fair Value Measurements and Disclosures, Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. In accordance with ASC 820-10, Teradyne measures its debt and equity investments at fair value. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Financial Assets and Financial Liabilities In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, “ Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Prepayments Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2020 2019 (in thousands) Contract manufacturer and supplier prepayments $ 212,286 $ 143,392 Prepaid taxes 9,361 8,046 Prepaid maintenance and other services 13,116 8,503 Other prepayments 15,329 16,753 Total prepayments $ 250,092 $ 176,694 Retirement and Postretirement Plans Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “ Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Goodwill, Intangible and Long-Lived Assets Teradyne accounts for goodwill and intangible assets in accordance with ASC 350-10, “ Intangibles-Goodwill and Other. of December 31, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. In accordance with ASC 350-10, Teradyne has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying amounts, a quantitative goodwill impairment test is not required. In accordance with ASC 360-10, “ Impairment or Disposal of Long-Lived Assets, Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flows valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 Building improvements 5 Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 Machinery, equipment and software 3 Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2020, 2019, and 2018 was $7.3 million, $5.0 million, and $3.8 million, respectively. Leases Teradyne adopted Accounting Standards Update (“ASU”) 2016-02, “ Leases (Topic 842) Leases (Topic 842): Targeted Improvements Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne. As of December 31, 2020, Teradyne does not have material leases that have not yet commenced. Teradyne determines if the lease is an operating or finance lease 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 components such as common area maintenance. Teradyne elected the practical expedient to account for the lease and non-lease components as a single lease component. For leases with a term of one year or less Teradyne has elected not to record the lease asset or liability. The lease payments are recognized in the consolidated statement of earnings on a straight-line basis over the lease term. Teradyne includes lease costs within cost of revenues and operating expenses. See Note I: “Leases.” Engineering and Development Costs Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring engineering charges related to product design, allocated facility costs, depreciation, and tooling costs. Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “ Compensation-Stock Compensation Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows. Teradyne elects to account for forfeitures by applying an estimated forfeiture rate and recognizes compensation costs only for those stock-based compensation awards expected to vest. Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Teradyne performed the required assessment of positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes.” Advertising Costs Teradyne expenses all advertising costs as incurred. Advertising costs were $12.8 million, $16.6 million and $15.4 million in 2020, 2019 and 2018, respectively. Translation of Non-U.S. Currencies The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2020, 2019, and 2018, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $2.6 million, $(1.6) million, and $(2.5) million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. Net Income (Loss) per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income (loss) per common share is calculated by dividing net income (loss) by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne has determined that it has the ability and intent to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, Teradyne is accounting for the conversion spread using the treasury stock method. Comprehensive Income (Loss) Comprehensive income (loss) includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities and foreign currency translation adjustment. Prior to 2018, comprehensive income (loss) included unrealized gains and losses on investments in equity marketable securities. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Recently Issued Accounting Pronouncements | C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2020, the FASB issued ASU 2020-06 — “Debt — — |
Acquisitions and Investment in
Acquisitions and Investment in Other Company | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions and Investment in Other Company | D. ACQUISITIONS AND INVESTMENT IN OTHER COMPANY Acquisitions AutoGuide LLC On November 13, 2019, Teradyne acquired 100% of the membership interests of AutoGuide, LLC (“AutoGuide”), a maker of high-payload AMRs, based in Chelmsford, MA, an emerging and fast growing segment of the global forklift market. The total purchase price was approximately $81.6 million, which included cash paid of approximately $57.6 million and $24.0 million in fair value of contingent consideration payable upon achievement of certain performance targets, extending potentially through 2022. At December 31, 2020, the maximum contingent consideration that could be paid is $100.2 million. The contingent consideration is payable upon achievement of certain thresholds and targets for revenue and earnings before interest and taxes for periods from January 1, 2019 to December 31, 2020, January 1, 2019 to December 31, 2021, and January 1, 2019 to December 31, 2022. The valuation of the contingent consideration is dependent on the following assumptions: forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. These assumptions were estimated based on a review of the historical and projected results. The AutoGuide acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s consolidated results of operations from the date of acquisition. AutoGuide’s AMRs are used for material transport of payloads up to 4,500 kg in manufacturing, warehouse and logistics applications. These products complement Mobile Industrial Robots A/S (“MiR”) lower payload products and expand the Industrial Automation segment, which is a key component of Teradyne’s growth strategy. The allocation of the total purchase price to AutoGuide’s net tangible assets and identifiable intangible assets was based on their fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible assets and net tangible assets in the amount of $41.2 million was allocated to goodwill, which is deductible for tax purposes. AutoGuide’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 41,223 Intangible assets 37,660 Tangible assets acquired and liabilities assumed: Other current assets 3,661 Non-current assets 1,227 Accounts payable and current liabilities (1,223 ) Long-term other liabilities (949 ) Total purchase price $ 81,599 Teradyne estimated the fair value of intangible assets using the income approach. Forecasted revenues is the key assumption for estimating the fair value. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful (in thousands) (in years) Developed technology $ 24,590 6.0 Customer relationships 7,360 6.0 Trademarks and tradenames 5,450 7.0 Backlog 260 0.3 Total intangible assets $ 37,660 6.1 For the period from November 13, 2019 to December 31, 2019, AutoGuide contributed $1.4 million of revenues and had a $(0.9) million loss before income taxes. 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 and wind power, 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 consolidated financial statements. Mobile Industrial Robots On April 25, 2018, Teradyne acquired all of the issued and outstanding shares of MiR, a Danish limited liability company located in Odense, Denmark. MiR is a leading maker of collaborative autonomous mobile robots for industrial applications. 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. Contingent consideration for the period from January 1, 2018 to December 31, 2018 was $31.0 million and was paid in March 2019. Contingent consideration for the period from January 1, 2018 to December 31, 2019 was $9.1 million, based on the results during the period and modification of the earn-out structure, and was paid in March 2020. No contingent consideration will be paid out against the period from December 31, 2018 through December 31, 2020. The valuation of the contingent consideration is dependent on the following assumptions: forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. These assumptions were estimated based on a review of the historical and projected results. The MiR acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s consolidated results of operations from the date of acquisition. MiR’s products will help expand the Industrial Automation segment, which is a key component of our growth strategy. The allocation of the total purchase price to MiR’s net tangible liabilities and identifiable intangible assets was based on their estimated fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible assets and net tangible liabilities in the amount of $136.0 million was allocated to goodwill, which is not deductible for tax purposes. MiR’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,976 Intangible assets 80,670 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current assets 1,336 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (18,007 ) Other long-term liabilities (900 ) Total purchase price $ 197,778 Teradyne estimated the fair value of intangible assets using the income and cost approaches. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful (in thousands) (in 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 Energid Technologies Corporation On February 26, 2018, Teradyne acquired all of the issued and outstanding shares of Energid for a total purchase price of approximately $27.6 million. Energid’s technology enables and simplifies the programming of complex robotic motions used in a wide variety of end markets, ranging from heavy industry to healthcare, utilizing both traditional robots and collaborative robots. The Energid acquisition was accounted for as a business combination and, accordingly, Energid’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. As of the acquisition date, Teradyne’s purchase price allocation was goodwill of $14.4 million which is deductible for tax purposes, acquired intangible assets of $12.3 million with an average estimated useful life of 7.7 years, and $1.0 million of net tangible assets. The acquisition was not material to Teradyne’s consolidated financial statements. Pro Forma Information The following unaudited pro forma information gives effect to the acquisition of AutoGuide as if the acquisition occurred on January 1, 2018 and the acquisition of MiR as if the acquisition occurred on January 1, 2017. The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: December 31, 2019 December 31, 2018 (in thousands, except per share amount) Revenues $ 2,303,737 $ 2,111,373 Net income $ 464,602 $ 442,082 Net income per common share: Basic $ 2.73 $ 2.36 Diluted $ 2.59 $ 2.30 Pro forma results for the year ended December 31, 2019 were adjusted to exclude $1.2 million of AutoGuide acquisition related costs and $0.1 million of AutoGuide non-recurring expense related to fair value adjustment to acquisition-date inventory. Pro forma results for the year ended December 31, 2018 were adjusted to include $1.2 million of AutoGuide acquisition related costs and $0.1 million of AutoGuide non-recurring expense related to fair value adjustment to acquisition-date inventory. Pro forma results for the year ended December 31, 2018 were adjusted to exclude $2.9 million of MiR acquisition related costs and $0.4 million of MiR non-recurring expense related to fair value adjustment to acquisition-date inventory. Investment in Other Company On June 3, 2019, Teradyne invested $15.0 million in RealWear, Inc. (“RealWear”). RealWear, a private company, develops and sells advanced wearable technology including industrial, hands-free, head-mounted augmented reality devices that make the workplace safer and more productive. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on a quarterly basis. On February 28, 2020, RealWear’s debt holder demanded repayment of its $25.0 million loan to RealWear. As a result, in the fourth quarter of 2019, Teradyne recorded an impairment charge of $15.0 million to reduce its investment in RealWear to zero |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | E. REVENUE Disaggregation of Revenue The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Test Industrial Automation Wireless Corporate and Other Total System on-a-chip Memory System Test Universa l Mobile AutoGuide (in thousands) For the Year Ended December 31, 2020 (1) Timing of Revenue Recognition Point in Time $ 1,659,414 $ 363,324 $ 348,454 $ 214,212 $ 44,622 $ 10,911 $ 163,834 $ (604 ) $ 2,804,166 Over Time 217,975 18,884 61,275 7,269 211 2,506 9,182 — 317,302 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 44,833 $ 13,417 $ 173,016 $ (604 ) $ 3,121,469 Geographical Market Asia Pacific $ 1,744,593 $ 364,000 $ 258,521 $ 60,277 $ 6,471 $ — $ 143,969 $ — $ 2,577,831 Americas 77,671 12,999 128,482 64,164 16,769 13,417 22,544 (604 ) 335,441 Europe, Middle East and Africa 55,125 5,209 22,726 97,040 21,593 — 6,503 — 208,196 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 44,833 $ 13,417 $ 173,016 $ (604 ) $ 3,121,469 For the Year Ended December 31, 2019 (1) Timing of Revenue Recognition Point in Time $ 1,070,375 $ 247,221 $ 237,686 $ 244,515 $ 44,329 $ 1,144 $ 148,322 $ (515 ) $ 1,993,077 Over Time 216,065 18,910 49,769 7,843 74 234 8,993 — 301,888 Total $ 1,286,440 $ 266,131 $ 287,455 $ 252,358 $ 44,403 $ 1,378 $ 157,315 $ (515 ) $ 2,294,965 Geographical Market Asia Pacific $ 1,152,881 $ 238,714 $ 132,826 $ 68,027 $ 9,513 $ — $ 126,549 $ — $ 1,728,510 Americas 73,257 23,826 129,840 71,926 14,438 1,378 24,234 (515 ) 338,384 Europe, Middle East and Africa 60,302 3,591 24,789 112,405 20,452 — 6,532 — 228,071 Total $ 1,286,440 $ 266,131 $ 287,455 $ 252,358 $ 44,403 $ 1,378 $ 157,315 $ (515 ) $ 2,294,965 For the Year Ended December 31, 2018 (1) Timing of Revenue Recognition Point in Time $ 1,010,493 $ 259,366 $ 167,418 $ 232,448 $ 24,115 $ — $ 122,536 $ (1,205 ) $ 1,815,171 Over Time 208,456 14,102 48,714 4,889 — — 9,470 — 285,631 Total $ 1,218,949 $ 273,468 $ 216,132 $ 237,337 $ 24,115 $ — $ 132,006 $ (1,205 ) $ 2,100,802 Geographical Market Asia Pacific $ 1,067,879 $ 245,264 $ 90,989 $ 58,492 $ 5,950 $ — $ 107,872 $ — $ 1,576,446 Americas 78,498 17,353 96,763 70,478 7,326 — 19,166 (1,205 ) 288,379 Europe, Middle East and Africa 72,572 10,851 28,380 108,367 10,839 — 4,968 — 235,977 Total $ 1,218,949 $ 273,468 $ 216,132 $ 237,337 $ 24,115 $ — $ 132,006 $ (1,205 ) $ 2,100,802 (1) Includes $10.0 million, $8.4 million and $12.0 million in 2020, 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” Contract Balances For the years ended December 31, 2020, 2019 and 2018, Teradyne recognized $91.0 million, $65.6 million and $69.9 million, respectively, that was included within the deferred revenue and customer advances balances at the beginning of the period. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of December 31, 2020, T expects to recognize 92% of the remaining performance obligation in the next 12 months, 8% in 1-3 years, and the remainder thereafter. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | F. INVENTORIES Inventories, net consisted of the following at December 31, 2020 and 2019: 2020 2019 (in thousands) Raw material $ 114,133 $ 118,595 Work-in-process 25,408 32,695 Finished goods 82,648 45,401 $ 222,189 $ 196,691 Inventory reserves for the years ended December 31, 2020 and 2019 were $110.6 million and $103.6 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment | G. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consisted of the following at December 31, 2020 and 2019: 2020 2019 (in thousands) Land $ 17,207 $ 16,561 Buildings 108,221 107,282 Machinery, equipment and software 956,035 834,970 Furniture and fixtures 28,487 29,157 Leasehold improvements 61,276 59,378 Construction in progress 13,098 2,537 1,184,324 1,049,885 Less: accumulated depreciation 789,524 729,669 $ 394,800 $ 320,216 Depreciation of property, plant and equipment for the years ended December 31, 2020, 2019, and 2018 was $80.1 million, $70.8 million, and $67.4 million, respectively. As of December 31, 2020 and 2019, the gross book value included in machinery and equipment for internally manufactured test systems being leased by customers was $23.4 million and $5.4 million, respectively. As of December 31, 2020 and 2019, the accumulated depreciation on these test systems was $7.5 million and $5.1 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | H. FINANCIAL INSTRUMENTS Cash Equivalents Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. Marketable Securities Teradyne recognizes the changes in fair value of equity securities directly in earnings. Teradyne’s available-for-sale debt securities are classified as Level 2, and equity and debt mutual funds are classified as Level 1. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. During the years ended December 31, 2020 and 2019, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in 2020, 2019, and 2018 were $4.6 million, $1.3 million, and $4.0 million, respectively. Realized losses recorded in 2020, 2019, and 2018 were $0.3 million, $0.2 million, and $1.6 million, respectively. Realized gains and losses are included in other (income) expense, net. Unrealized gains on equity securities recorded during the years ended December 31, 2020 and 2019 were $9.6 million and $5.3 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2020 and 2019 were $6.0 million and $0.4 million, respectively. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale debt securities are included in accumulated other comprehensive income (loss) on the balance sheet. The cost of securities sold is based on the first-in first out method. The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2020 and 2019: December 31, 2020 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 $ 443,166 $ — $ — $ 443,166 Cash equivalents 347,768 123,187 — 470,955 Available for sale securities: U.S. Treasury securities — 258,304 — 258,304 Commercial paper — 254,413 — 254,413 Corporate debt securities — 83,615 — 83,615 Debt mutual funds 8,565 — — 8,565 U.S. government agency securities — 4,339 — 4,339 Certificates of deposit and time deposits — 979 — 979 Non-U.S. government securities — 625 — 625 Equity securities: Mutual funds 29,420 — — 29,420 Total $ 828,919 $ 725,462 $ — $ 1,554,381 Derivative assets — 95 — 95 Total $ 828,919 $ 725,557 $ — $ 1,554,476 Liabilities Contingent consideration $ — $ — $ 7,227 $ 7,227 Derivative liabilities — 504 — 504 Total $ — $ 504 $ 7,227 $ 7,731 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 790,934 $ 123,187 $ — $ 914,121 Marketable securities — 522,280 — 522,280 Long-term marketable securities 37,985 79,995 — 117,980 Prepayments and other current assets — 95 — 95 Total $ 828,919 $ 725,557 $ — $ 1,554,476 Liabilities Other current liabilities $ — $ 504 $ — $ 504 Long-term contingent consideration — — 7,227 7,227 Total $ — $ 504 $ 7,227 $ 7,731 December 31, 2019 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 311,975 $ — $ — $ 311,975 Cash equivalents 410,285 51,664 — 461,949 Available for sale securities: Corporate debt securities — 97,307 — 97,307 Commercial paper — 54,149 — 54,149 U.S. Treasury securities — 42,382 — 42,382 U.S. government agency securities — 9,952 — 9,952 Debt mutual funds 6,888 — — 6,888 Certificates of deposit and time deposits — 4,751 — 4,751 Non-U.S. government securities — 592 — 592 Equity securities: Mutual funds 25,772 — — 25,772 Total $ 754,920 $ 260,797 $ — $ 1,015,717 Derivative assets — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Contingent consideration $ — $ — $ 39,705 $ 39,705 Derivative liabilities — 203 — 203 Total $ — $ 203 $ 39,705 $ 39,908 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 722,260 $ 51,664 $ — $ 773,924 Marketable securities — 137,303 — 137,303 Long-term marketable securities 32,660 71,830 — 104,490 Prepayments and other current assets — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Other current liabilities $ — $ 203 $ — $ 203 Contingent consideration — — 9,106 9,106 Long-term contingent consideration — — 30,599 30,599 Total $ — $ 203 $ 39,705 $ 39,908 Changes in the fair value of Level 3 contingent consideration for the years ended December 31, 2020 and 2019 were as follows: Contingent Consideration (in thousands) Balance at December 31, 2018 $ 70,543 Acquisition of AutoGuide 23,976 Foreign currency impact (967 ) Payments (1) (34,590 ) Fair value adjustment (2) (19,257 ) Balance at December 31, 2019 39,705 Foreign currency impact (355 ) Payments (3) (8,852 ) Fair value adjustment (4) (23,271 ) Balance at December 31, 2020 $ 7,227 (1) During the year ended December 31, 2019, Teradyne paid $30.8 million and $3.8 million of contingent consideration for the earn-outs in connection with the acquisitions of MiR and Universal Robots A/S (“Universal Robots”), respectively. (2) During the year ended December 31, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was decreased by $22.2 million primarily due to a decrease in forecasted revenues partially offset by the impact from modification of the earn-out structure. During the year ended December 31, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of AutoGuide was increased by $3.0 million primarily due to an increase in forecasted revenues (3) During the year ended December 31, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out in connection with the acquisition of MiR. (4) During the year ended December 31, 2020, the fair value of contingent consideration for the earn-out in connection with the acquisition of AutoGuide was decreased by $19.7 million primarily due to a decrease in forecasted revenues and earnings before interest and taxes The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instrument: Liability December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent consideration (AutoGuide) $ 7,227 Monte Carlo simulation Revenue Volatility 16.5% Discount Rate 1.0% As of December 31, 2020, the significant unobservable inputs used in the Monte Carlo simulation to fair value the AutoGuide contingent consideration include forecasted revenues, revenue volatility, earnings before interest and taxes and discount rate. Increases or decreases in the inputs would result in a higher or lower fair value measurement. As of December 31, 2020, the maximum amount of contingent consideration that could be paid in connection with the acquisition of AutoGuide is $100.2 million. No payment was made related to the period ending December 31, 2020. The remaining earn-out periods end on December 31, 2021 and December 31, 2022. The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2020 and 2019 were as follows: December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 914,121 $ 914,121 $ 773,924 $ 773,924 Marketable securities 640,260 640,260 241,793 241,793 Derivative assets 95 95 528 528 Liabilities Contingent consideration 7,227 7,227 39,705 39,705 Derivative liabilities 504 504 203 203 Convertible debt (1) 410,111 1,739,553 394,687 1,010,275 (1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features. The fair values of accounts receivable, net and accounts payable approximate the carrying amount due to the short term nature of these instruments. The following tables summarize the composition of available-for-sale marketable securities at December 31, 2020 and 2019: December 31, 2020 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 257,132 $ 1,330 $ (158 ) $ 258,304 $ 17,243 Commercial paper 254,404 10 (1 ) 254,413 12,173 Corporate debt securities 76,129 7,539 (53 ) 83,615 39,896 Debt mutual funds 8,413 152 — 8,565 — U.S. government agency securities 4,294 46 (1 ) 4,339 1,106 Certificates of deposit and time deposits 979 — — 979 — Non-U.S. government securities 625 — — 625 — $ 601,976 $ 9,077 $ (213 ) $ 610,840 $ 70,418 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 522,228 $ 92 $ (40 ) $ 522,280 $ 61,806 Long-term marketable securities 79,748 8,985 (173 ) 88,560 8,612 $ 601,976 $ 9,077 $ (213 ) $ 610,840 $ 70,418 December 31, 2019 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Corporate debt securities $ 93,267 $ 4,081 $ (41 ) $ 97,307 $ 2,009 Commercial paper 54,124 26 (1 ) 54,149 1,391 U.S. Treasury securities 42,167 431 (216 ) 42,382 17,556 U.S. government agency securities 9,942 14 (4 ) 9,952 3,043 Debt mutual funds 6,753 135 — 6,888 — Certificates of deposit and time deposits 4,751 — — 4,751 — Non-U.S. government securities 592 — — 592 — $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 137,144 $ 160 $ (1 ) $ 137,303 $ 2,922 Long-term marketable securities 74,452 4,527 (261 ) 78,718 21,077 $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 As of December 31, 2020, the fair market value of investments with unrealized losses less than one year totaled $70.4 million. As of December 31, 2019, the fair market value of investments with unrealized losses less than one year totaled $23.6 million. Teradyne reviews its investments to identify and evaluate investments that have an indication of possible impairment. Based on this review, Teradyne determined that the unrealized losses related to these investments at December 31, 2020 and 2019, were not other than temporary. The contractual maturities of investments in available-for-sale marketable securities held at December 31, 2020 were as follows: Cost Fair Value (in Due within one year $ 522,228 $ 522,280 Due after 1 year through 5 years 24,829 25,245 Due after 5 years through 10 years 13,030 14,183 Due after 10 years 33,476 40,567 Total $ 593,563 $ 602,275 Contractual maturities of investments in available-for-sale marketable securities held at December 31, 2020 exclude debt mutual funds with the fair market value of $8.6 million as they do not have a contractual maturity date. Derivatives Teradyne conducts business in a number of foreign countries, with certain transactions denominated in local currencies. The purpose of Teradyne’s foreign currency management is to minimize the effect of exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities. Teradyne does not use derivative financial instruments for trading or speculative purposes. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings, and is used to offset the change in value of the monetary assets and liabilities denominated in foreign currencies. At December 31, 2020 and 2019, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts: December 31, 2020 December 31, 2019 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (14.1 ) $ — $ (14.1 ) $ (29.3 ) $ — $ (29.3 ) Taiwan Dollar (27.9 ) — (27.9 ) (18.4 ) — (18.4 ) Korean Won (5.3 ) — (5.3 ) (10.7 ) — (10.7 ) British Pound Sterling (1.0 ) — (1.0 ) (3.8 ) — (3.8 ) Singapore Dollar — 52.3 52.3 — 25.3 25.3 Euro — 43.9 43.9 — 47.8 47.8 Philippine Peso — 5.0 5.0 — 5.2 5.2 Chinese Yuan — 3.4 3.4 — 4.4 4.4 Total $ (48.3 ) $ 104.6 $ 56.3 $ (62.2 ) $ 82.7 $ 20.5 The fair value of the outstanding contracts was a loss of $0.4 million and a gain of $0.3 million, respectively, at December 31, 2020 and 2019. Gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. The following table summarizes the fair value of derivative instruments as of December 31, 2020 and 2019: Balance Sheet Location December 31, 2020 December 31, 2019 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 95 $ 528 Foreign exchange contracts Other current liabilities (504 ) (203 ) Total derivatives $ (409 ) $ 325 The following table summarizes the effect of derivative instruments in the statements of operations recognized for the years ended December 31, 2020, 2019, and 2018. Location of (Gains) Losses Recognized in Statement of Operations December 31, 2020 December 31, 2019 December 31, 2018 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 3,515 $ 5,960 $ 7,386 (1) The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. (2) For the years ended December 31, 2020, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.6 million. (3) For the year ended December 31, 2019 and 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.6 million and $2.5 million, respectively. See Note J: “Debt” regarding derivatives related to the convertible senior notes. Concentration of Credit Risk Financial instruments which potentially subject Teradyne to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Teradyne’s cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Teradyne’s fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. Teradyne places foreign currency forward contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically dispersed customers. Teradyne performs ongoing credit evaluations of its customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. As of December 31, 2020, a customer of our Semiconductor Test segment, JA Mitsui Leasing, LTD, accounted for 25% of our accounts receivable balance. The balance was paid in full as of February 22, 2021. There were no customers who accounted for 10% or more of our accounts receivable balance as of December 31, 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Lease | I. LEASES Teradyne has facility and auto leases, which are accounted for as operating leases. Teradyne’s facility leases are primarily used for administrative functions, research and development, manufacturing, and storage and distribution. Remaining lease terms range from less than one year to twelve years. Total lease expense for the year ended December 31, 2020 was $38.5 million and included $12.1 million of variable lease costs and $3.4 million of costs related to short-term leases, which are not recorded on the consolidated balance sheets. Total lease expense for the year ended December 31, 2019 was $35.6 million and included $11.1 million of variable lease costs and $2.6 million of costs related to short-term leases, which are not recorded on the consolidated balance sheets. At December 31, 2020, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.2 years and 4.8%, respectively. At December 31, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.5 years and 5.0%, respectively. Supplemental cash flows information related to leases was as follows: For the Year Ended Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows: $ 24,136 Right-of-use assets obtained in exchange for new lease obligations 14,801 Maturities of lease liabilities as of December 31, 2020 were as follows: Operating Lease (in thousands) 2021 $ 22,451 2022 16,798 2023 9,727 2024 7,215 2025 5,715 Thereafter 6,149 Total lease payments 68,055 Less imputed interest (5,409 ) Total lease liabilities $ 62,646 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt | J. DEBT Convertible Senior Notes On December 12, 2016, Teradyne completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of Teradyne’s common stock under its existing stock repurchase program from purchasers of the Notes in privately negotiated transactions effected through one of the initial purchasers or its affiliates conducted concurrently with the pricing of the Note offering. The Notes will mature on December 15, 2023, unless earlier repurchased or converted. The Notes bear interest at a rate of 1.25% per year payable semiannually in arrears on June 15 and December 15 of each year. 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: (1) during any calendar quarter beginning after March 31, 2017 (and only during such calendar quarter), if the closing sale price of Teradyne’s common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of the Teradyne’s common stock and the conversion rate on each such trading day; and (3) upon the occurrence of specified corporate 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 $31.56. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of Teradyne’s common stock. Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled (or, at its election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of common stock. As of December 31, 2020, the strike price of the warrants was approximately $39.60 per share. The strike price is subject to adjustment under certain circumstances. The Warrant Transactions could have a dilutive effect to Teradyne’s common stock to the extent that the market price per share of Teradyne’s common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne’s common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne’s common stock exceeds the applicable strike price of the warrant. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. Teradyne considered the guidance of ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” Teradyne assessed whether the convertible note hedge should be classified as equity under ASC 815-40. In the Note Hedge Transactions contract the settlement terms permit net cash settlement or net share settlement, at the option of Teradyne. Therefore, the criteria as set forth in ASC 815-40 were evaluated by Teradyne. In reviewing the criteria, Teradyne noted the following: (1) the convertible note hedge does not require Teradyne to issue shares; (2) there is no requirement to net cash settle the convertible note hedge for failure to make timely filings with the SEC; (3) in the case of termination, the convertible note hedge is settled in the same consideration as the holders of the underlying stock; (4) the counterparty does not have rights that rank higher than those of a shareholder of the stock underlying the convertible note hedge; and (5) there is no requirement to post collateral. Based on its analysis of those criteria, Teradyne concluded that the convertible note hedge should be recorded in equity and no further adjustment should be made in future periods to adjust the value of the convertible note hedge. Teradyne analyzed the Warrant Transactions under ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” The provisions of ASC 470-20, “ Debt with Conversion and Other Options, on seven-year The below tables represent the key components of Teradyne’s convertible senior notes: December 31, December 31, (in thousands) Debt principal $ 459,971 $ 460,000 Unamortized discount 49,860 65,313 Net carrying amount of convertible debt $ 410,111 $ 394,687 Reported as follows: December 31, December 31, (in thousands) Current debt $ 33,343 $ — Long-term debt 376,768 394,687 Net carrying amount of convertible debt $ 410,111 $ 394,687 For the year ended December 31, December 31, (in thousands) Contractual interest expense on the coupon $ 5,750 $ 5,750 Amortization of the discount component and debt issue fees recognized as interest expense 15,454 14,706 Total interest expense on the convertible debt $ 21,204 $ 20,456 As of December 31, 2020, the unamortized discount was $49.9 million, which will be amortized over three years using the effective interest rate method. The carrying amount of the equity component was $100.8 million. As of December 31, 2020, the conversion price was approximately $31.56 per share and if converted the value of the notes was $1,747.5 million. As of December 31, 2020, certain holders have elected to convert approximately $37 million of debt principal. Conversions will occur in the first quarter of 2021. The related liability component is included in current debt and the portion of the equity component is included in convertible common shares. Revolving Credit Facility On June 27, 2019, Teradyne terminated its credit agreement, which Teradyne entered into with Barclays Bank PLC on April 27, 2015. The terminated credit agreement, which was undrawn at termination, provided for a five-year On three-year The interest rate applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.50% to 1.25% per annum or LIBOR, a minimum of 0.75%, plus a margin ranging from 1.50% to 2.25% per annum, based on the consolidated leverage ratio of Teradyne. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.25% to 0.40% per annum, based on the then applicable consolidated leverage ratio. Teradyne is not required to repay any loans under the Credit Facility prior to maturity, subject to certain customary exceptions. Teradyne is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, other than customary LIBOR breakage costs. The Credit Agreement contains customary events of default, representations, warranties and affirmative and negative covenants that, among other things, limit Teradyne’s ability to sell assets, grant liens on assets, incur other secured indebtedness and make certain investments and restricted payments, all subject to exceptions set forth in the Credit Agreement. The Credit Agreement also requires Teradyne to satisfy two financial ratios measured as of the end of each fiscal quarter; a consolidated leverage ratio and an interest coverage ratio. The Credit Facility is guaranteed by certain of Teradyne’s domestic subsidiaries and collateralized by assets of Teradyne and such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. As of December 31, 2020, Teradyne was in compliance with all covenants under the Credit Agreement. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | K. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Changes in accumulated other comprehensive (loss) income, which is presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized (Losses) Gains on Marketable Securities Retirement Plans Service Credit Total (in thousands) Balance at December 31, 2018, net of tax of $0, $(521), $(1,081) $ (12,523 ) $ (1,845 ) $ 1,328 $ (13,040 ) Other comprehensive (loss) income before (10,991 ) 6,015 — (4,976 ) Amounts reclassified from accumulated other — (690 ) (148 ) (838 ) Net current period other comprehensive (loss) income, (10,991 ) 5,325 (148 ) (5,814 ) Balance at December 31, 2019, net of tax of $0, $946, $(1,124) $ (23,514 ) $ 3,480 $ 1,180 $ (18,854 ) Other comprehensive income before 48,903 5,839 — 54,742 Amounts reclassified from accumulated other — (2,365 ) (7 ) (2,372 ) Net current period other comprehensive income (loss), 48,903 3,474 (7 ) 52,370 Balance at December 31, 2020, net of tax of $0, $1,910, $(1,126) $ 25,389 $ 6,954 $ 1,173 $ 33,516 Reclassifications out of accumulated other comprehensive income to the statements of operations for the years ended December 31, 2020, 2019, and 2018, were as follows: Details about Accumulated Other Comprehensive Income Components For the year ended Affected Line Item in the Statements of Operations December 31, 2020 December 31, 2019 December 31, 2018 (in thousands) Available-for-sale marketable securities Unrealized gains (losses), net of tax of $665, $192, $21 $ 2,365 $ 690 $ (1,337 ) Interest income Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $2, $43, $71 7 148 245 (a) Total reclassifications, net of tax of $667, $235, $92 $ 2,372 $ 838 $ (1,092 ) Net income (a) The amortization of prior service credit is included in the computation of net periodic pension cost and postretirement benefit; see Note P: “Retirement Plans.” |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets | L. GOODWILL AND INTANGIBLE ASSETS Goodwill Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “ Intangibles—Goodwill and Other, Teradyne has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying amounts, the quantitative goodwill impairment test is not required. In performing the quantitative goodwill impairment test, Teradyne determines the fair value of a reporting unit using the results derived from an income approach and a market approach, weighting the fair value determined under each approach to determine an estimated fair value for a reporting unit. The income approach is estimated through the discounted cash flows (“DCF”) analysis. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount rates, perpetual growth rates, and the amount and timing of expected future cash flows. Discount rates are based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity, plus a risk premium. The WACC used to test goodwill is derived from a group of comparable companies. The cash flows employed in the DCF analysis are derived from internal forecasts and external market forecasts. The market approach estimates the fair value of the reporting unit by utilizing the market comparable method which is based on revenue and earnings multiples from comparable companies. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, then the goodwill is written down by the amount that carrying value exceeds the fair value of the reporting unit, but not below zero. On September 15, 2020, Teradyne announced the appointment of Gregory Smith as President of Teradyne’s Industrial Automation reportable segment effective October 1, 2020. With the appointment of Gregory Smith, the Industrial Automation reportable segment, which includes UR, MiR and AutoGuide, is considered one operating segment and one reporting unit. Teradyne performed a goodwill impairment test at the time of the change in operating segments, which indicated the fair value of Teradyne’s reporting units exceeded their carrying values. In the fourth quarter of 2020, Teradyne performed the annual goodwill impairment test, completing a qualitative assessment for the Wireless Test, System Test, and Industrial Automation reporting units. There was no impairment as a result of the annual test performed in the fourth quarter of 2020. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. Based on Teradyne’s December 31, 2019 goodwill impairment test, the MiR reporting unit’s estimated fair value exceeded its carrying value by 14%. The MiR goodwill amount is $123.6 million as of December 31, 2019. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. In the fourth quarter of 2018, Teradyne performed the annual goodwill impairment test. Teradyne completed step one of the two-step impairment test for the Universal Robots reporting unit. Teradyne completed step zero for the Wireless Test and Defense/Aerospace, MiR, and Energid reporting units. There was no impairment as a result of the annual test performed in the fourth quarter of 2018. The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2020 and 2019 are as follows: Industrial Automation Wireless Test Semiconductor Test System Test Total (in thousands) Balance at December 31, 2018: Goodwill $ 363,358 $ 361,819 $ 260,540 $ 158,699 $ 1,144,416 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 363,358 7,976 — 10,516 381,850 Lemsys acquisition — — 1,428 — 1,428 AutoGuide acquisition 41,372 — — — 41,372 Foreign currency translation adjustment (8,247 ) — 28 — (8,219 ) Balance at December 31, 2019: Goodwill 396,483 361,819 261,996 158,699 1,178,997 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 396,483 7,976 1,456 10,516 416,431 AutoGuide acquisition (149 ) — — — (149 ) Foreign currency translation adjustment 37,418 — 159 — 37,577 Balance at December 31, 2020: Goodwill 433,752 361,819 262,155 158,699 1,216,425 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) $ 433,752 $ 7,976 $ 1,615 $ 10,516 $ 453,859 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. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2020, 2019 and 2018. Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2020 Gross Carrying Amount Accumulated Amortization (1) Foreign Net Carrying Amount (in thousands) Developed technology $ 272,547 $ (210,479 ) $ (1,610 ) $ 60,458 Customer relationships 66,239 (54,524 ) 305 12,020 Tradenames and trademarks 70,120 (42,344 ) 685 28,461 Total intangible assets $ 408,906 $ (307,347 ) $ (620 ) $ 100,939 December 31, 2019 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Developed technology $ 361,787 $ (279,000 ) $ (5,709 ) $ 77,078 Customer relationships 75,669 (59,077 ) (455 ) 16,137 Tradenames and trademarks 70,120 (36,671 ) (1,184 ) 32,265 Backlog 260 (260 ) — — Total intangible assets $ 507,836 $ (375,008 ) $ (7,348 ) $ 125,480 (1) In 2020, $98.9 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. Aggregate intangible assets amortization expense for the years ended December 31, 2020, 2019, and 2018, was $30.8 million, $40.1 million, and $39.2 million, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2021 $ 21,893 2022 21,000 2023 20,504 2024 20,192 2025 11,922 Thereafter 5,428 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | M. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of December 31, 2020, Teradyne had entered into non-cancelable purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $603.5 million, of which $592.1 million is for less than one year. Legal Claims Teradyne is subject to legal proceedings, claims and investigations that arise in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. Guarantees and Indemnification Obligations Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences, while the officer, director, employee, or agent, is or was serving, at Teradyne’s request in such capacity. Teradyne may enter into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ by-laws and charter. As a matter of practice, Teradyne has maintained directors’ and officers’ liability insurance coverage including coverage for directors and officers of acquired companies. Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne’s products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne’s products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below. As a matter of ordinary course of business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates these guarantees and determines what charges, if any, should be recorded. With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. Based on historical experience and information known as of December 31, 2020, and 2019, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Net Income per Common Share | N. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: 2020 2019 2018 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 784,147 $ 467,468 $ 451,779 Weighted average common shares-basic 166,120 170,425 187,672 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 8,528 4,909 2,749 Convertible note hedge warrant shares (2) 6,989 2,698 485 Restricted stock units 1,264 1,236 1,385 Stock options 131 178 278 Employee stock purchase rights 10 13 36 Dilutive potential common shares 16,922 9,034 4,933 Weighted average common shares-diluted 183,042 179,459 192,605 Net income per common share-basic $ 4.72 $ 2.74 $ 2.41 Net income per common share-diluted $ 4.28 $ 2.60 $ 2.35 (1) Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.56, multiplied by 14.6 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. (2) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.60, multiplied by 14.6 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 2020 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.1 million shares because the effect would have been anti-dilutive. The computation of diluted net income per common share for 2018 excludes the effect of the potential exercise of restricted stock units to purchase approximately 0.5 million shares because the effect would have been anti-dilutive. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | O. RESTRUCTURING AND OTHER During the year ended December 31, 2020, Teradyne recorded a $19.7 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability, and a $3.5 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by a $4.0 million contract termination settlement charge, $2.5 million of acquisition related compensation and expenses, $2.3 million of severance charges primarily in Industrial Automation, and $1.2 million of other expenses. During the year ended December 31, 2019, Teradyne recorded a $22.2 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by a $3.0 million gain for the increase in the fair value of the AutoGuide contingent consideration, $2.9 million of severance charges related to headcount reductions primarily in Semiconductor Test and Industrial Automation, and $2.5 million for acquisition related expenses and compensation. The remaining accrual for severance of $0.5 million is reflected in the accrued employees’ compensation and withholdings on the balance sheet and is expected to be paid by March 2021. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Plans | P. RETIREMENT PLANS ASC 715 , Compensation—Retirement Benefits, Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (the “IRC”), as well as unfunded qualified foreign plans. In 2020, Teradyne’s projected benefit obligations increased primarily due to actuarial losses of approximately $27.6 million across all pension plans from decreases in discount rates, and approximately $4.0 million from unfavorable foreign exchange effects for the German plan, partially offset by a transfer of obligations for approximately 115 retiree participants to an insurance company which resulted in a $24.4 million reduction in the projected benefit obligations and pension assets. We also recorded a settlement loss of $0.5 million related to the retiree group annuity transaction. In 2019, Teradyne’s projected benefit obligations increased primarily due to actuarial losses of approximately $29.0 million across all pension plans from decreases in discount rates. The December 31 balances of these defined benefit pension plans assets and obligations are shown below: 2020 2019 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 203,791 $ 43,952 $ 178,237 $ 39,146 Service cost 1,773 907 1,608 751 Interest cost 5,770 516 7,189 691 Actuarial loss 24,671 2,951 24,447 4,520 Benefits paid (9,844 ) (1,299 ) (7,690 ) (836 ) Retiree annuity purchase (24,379 ) — — — Liability loss due to settlement 451 — — — Non-U.S. currency movement — 3,961 — (320 ) End of year 202,233 50,988 203,791 43,952 Change in plan assets: Fair value of plan assets: Beginning of year 166,932 1,586 144,301 1,400 Actual return on plan assets 23,048 67 27,516 64 Company contributions 3,098 1,079 2,805 923 Benefits paid (9,844 ) (988 ) (7,690 ) (836 ) Retiree annuity purchase (24,379 ) — — — Non-U.S. currency movement — 112 — 35 End of year 158,855 1,856 166,932 1,586 Funded status $ (43,378 ) $ (49,132 ) $ (36,859 ) $ (42,366 ) The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2020 2019 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 17,468 $ — $ 18,457 $ — Accrued employees’ compensation and withholdings (3,273 ) (1,019 ) (2,826 ) (922 ) Retirement plans liabilities (57,573 ) (48,113 ) (52,490 ) (41,444 ) Funded status $ (43,378 ) $ (49,132 ) $ (36,859 ) $ (42,366 ) The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2020 2019 United States Foreign United States Foreign (in thousands) Deferred taxes related to prior service cost recognized in other comprehensive income $ 560 $ — $ 560 $ — The accumulated benefit obligation for the United States defined benefit pension plans was $196.7 million and $198.2 million at December 31, 2020 and 2019, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $46.5 million and $39.9 million at December 31, 2020 and 2019, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets as of Decemb e 2020 2019 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 60.8 $ 51.0 $ 55.3 $ 44.0 Accumulated benefit obligation 58.5 46.5 53.2 39.9 Fair value of plan assets — 1.9 — 1.6 Expense For the years ended December 31, 2020, 2019, and 2018, Teradyne’s net periodic pension cost (income) was comprised of the following: 2020 2019 2018 United States Foreign United States Foreign United States Foreign (in thousands) Components of Net Periodic Pension Cost (Income): Service cost $ 1,773 $ 907 $ 1,608 $ 751 $ 2,196 $ 786 Interest cost 5,770 516 7,189 691 8,940 687 Expected return on plan assets (4,840 ) (65 ) (6,042 ) (29 ) (9,049 ) (19 ) Amortization of prior service cost — — — — 58 — Net actuarial loss (gain) 6,463 2,949 2,973 4,485 (4,429 ) 743 Settlement loss 451 — — — 345 — Total net periodic pension cost (income) $ 9,617 $ 4,307 $ 5,728 $ 5,898 $ (1,939 ) $ 2,197 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service cost — — — — (58 ) — Total recognized in other comprehensive income — — — — (58 ) — Total recognized in net periodic pension cost (income) and other comprehensive income $ 9,617 $ 4,307 $ 5,728 $ 5,898 $ (1,997 ) $ 2,197 Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2020 2019 2018 United States Foreign United States Foreign United States Foreign Discount rate 2.8 % 1.1 % 4.1 % 1.8 % 3.4 % 1.8 % Expected return on plan assets 3.0 3.8 4.3 2.0 4.3 1.5 Salary progression rate 2.6 2.5 2.3 2.5 2.3 2.7 Weighted Average Assumptions to Determine Pension Obligations at December 31: 2020 2019 United States Foreign United States Foreign Discount rate 2.2 % 0.7 % 3.0 % 1.1 % Salary progression rate 2.4 2.3 2.6 2.5 In developing the expected return on plan assets assumption, Teradyne evaluates input from its investment manager and pension consultants, including their forecast of asset class return expectations. Teradyne believes that 3.0% was an appropriate rate to use for fiscal 2020 for the U.S. Qualified Pension Plan (“U.S. Plan”). Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. The discount rate utilized to determine future pension obligations for the U.S. Plan is based on FTSE Pension Index adjusted for the plan’s expected cash flows and was 2.3% at December 31, 2020, down from 3.10% at December 31, 2019. Plan Assets As of December 31, 2020, the fair value of Teradyne’s pension plans’ assets totaled $160.7 million of which $158.9 million was related to the U.S. Plan and $1.9 million was related to the Taiwan defined benefit pension plan. Substantially all of Teradyne’s pension plans’ assets are held in individual trusts, which were established for the investment of assets of Teradyne’s sponsored retirement plans. The following table provides weighted average pension asset allocation by asset category at December 31, 2020 and 2019: 2020 2019 United States Foreign United States Foreign Fixed income securities 94.0 % — % 94.0 % — % Equity securities 5.0 — 5.0 — Other 1.0 100.0 1.0 100.0 100.0 % 100.0 % 100.0 % 100.0 % The assets of the U.S. Plan are overseen by the Teradyne Fiduciary Committee which is comprised of members of senior management drawn from appropriate diversified levels of the management team. The Fiduciary Committee is responsible for setting the policy that provides the framework for management of the U.S. Plan assets. In accordance with its responsibilities, the Fiduciary Committee meets on a regular basis to review the performance of the U.S. Plan assets and compliance with the investment policy. The policy sets forth an investment structure for managing U.S. Plan assets, including setting the asset allocation ranges, which are expected to provide an appropriate level of overall diversification required to maximize the long-term return on plan assets for a prudent and reasonable level of risk given prevailing market conditions, total investment return over the long term, and preservation of capital, while maintaining sufficient liquidity to pay the benefits of the U.S. Plan. The investment portfolio will not, at any time, have a direct investment in Teradyne stock. It may have indirect investment in Teradyne stock, if one of the funds selected by the investment manager invests in Teradyne stock. In developing the asset allocation ranges, third party asset allocation studies are periodically performed that consider the current and expected positions of the plan assets and funded status. Based on this study and other appropriate information, the Fiduciary Committee establishes asset allocation ranges taking into account acceptable risk targets and associated returns. The investment return objectives are to avoid excessive volatility and produce a rate of return that at least matches the Policy Index identified below. The manager’s investment performance is reviewed at least annually. Results for the total portfolio and for each major category of assets are evaluated in comparison with appropriate market indices and the Policy Index. Teradyne’s U.S. Plan invests primarily in common trust funds. Units held in the common trust funds are valued at the unit price as reported by the investment manager based on the asset value of the underlying investments; underlying investments in equity securities are valued at the last reported sales price, and underlying investments in fixed-income securities are generally valued using methods based upon market transactions for comparable securities. During the years ended December 31, 2020 and December 31, 2019, there were no transfers of pension assets in or out of Level 1, Level 2, and Level 3. The fair value of pension plan assets by asset category and by level at December 31, 2020 and December 31, 2019 were as follows: December 31, 2020 United States Foreign Level 1 Level 2 Level Total Level Level 2 Level Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 127,098 $ — $ 127,098 $ — $ — $ — $ — U.S. government securities — 22,250 — 22,250 — — — — Global equity — 7,925 — 7,925 — — — — Other — — — — — 1,856 — 1,856 Cash and cash equivalents 1,582 — — 1,582 — — — — Total $ 1,582 $ 157,273 $ — $ 158,855 $ — $ 1,856 $ — $ 1,856 December 31, 2019 United States Foreign Level 1 Level 2 Level Total Level Level 2 Level Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 133,792 $ — $ 133,792 $ — $ — $ — $ — U.S. government securities — 23,186 — 23,186 — — — — Global equity — 8,344 — 8,344 — — — — Other — — — — — 1,586 — 1,586 Cash and cash equivalents 1,610 — — 1,610 — — — — Total $ 1,610 $ 165,322 $ — $ 166,932 $ — $ 1,586 $ — $ 1,586 Contributions Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2020, Teradyne contributed $3.1 million to the U.S. supplemental executive defined benefit pension plan and $1.1 million to certain qualified plans for non-U.S. subsidiaries. During 2019, Teradyne contributed $2.8 million to the U.S. supplemental executive defined benefit pension plan and $0.9 million to certain qualified plans for non-U.S. subsidiaries. In 2021, contributions to the U.S. supplemental executive defined benefit pension plan and certain qualified plans from non-U.S. subsidiaries will be approximately $3.3 million and $1.1 million, respectively. Expected Future Pension Benefit Payments Future benefit payments are expected to be paid as follows: United States Foreign (in thousands) 2021 $ 8,902 $ 1,058 2022 8,782 1,063 2023 9,189 1,313 2024 9,815 1,192 2025 10,374 1,140 2026-2030 54,145 7,053 Postretirement Benefit Plans In addition to receiving pension benefits, U.S. Teradyne employees who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees. The December 31 balances of the postretirement assets and obligations are shown below: 2020 2019 (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 9,003 $ 9,256 Service cost 57 41 Interest cost 240 347 Actuarial loss 421 717 Benefits paid (1,205 ) (1,358 ) End of year 8,515 9,003 Change in plan assets: Fair value of plan assets: Beginning of year — — Company contributions 1,205 1,358 Benefits paid (1,205 ) (1,358 ) End of year — — Funded status $ (8,515 ) $ (9,003 ) The following table provides amounts recorded within the account line items of financial position as of December 31: 2020 2019 (in thousands) Accrued employees’ compensation and withholdings $ (1,161 ) $ (1,231 ) Retirement plans liability (7,354 ) (7,772 ) Funded status $ (8,515 ) $ (9,003 ) The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2020 2019 (in thousands) Prior service credit, before tax $ (49 ) $ (58 ) Deferred taxes (1,686 ) (1,684 ) Total recognized in other comprehensive income, net of tax $ (1,735 ) $ (1,742 ) Expense 2020 2019 2018 (in thousands) Components of Net Periodic Postretirement Benefit Cost (income): Service cost $ 57 $ 41 $ 39 Interest cost 240 347 196 Amortization of prior service credit (9 ) (191 ) (373 ) Net actuarial loss 421 717 25 Special termination benefits — — 3,708 Total net periodic postretirement benefit cost 709 914 3,595 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service credit 9 191 373 Total recognized in other comprehensive income 9 191 373 Total recognized in net periodic postretirement cost and other comprehensive income $ 718 $ 1,105 $ 3,968 Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1: 2020 2019 2018 Discount rate 3.0 % 4.0 % 3.4 % Initial health care cost trend rate 7.1 7.5 7.9 Ultimate health care cost trend rate 4.5 4.5 4.5 Year in which ultimate health care cost trend rate is reached 2026 2026 2026 2020 2019 2018 Discount rate 2.2 % 3.0 % 4.0 % Initial medical trend 7.3 7.1 7.5 Ultimate health care trend 4.5 4.5 4.5 Medical cost trend rate decrease to ultimate rate in year 2029 2026 2026 Expected Future Benefit Payments Future benefit payments are expected to be paid as follows: Benefit Payments (in thousands) 2021 $ 1,161 2022 961 2023 786 2024 646 2025 533 2026-2030 1,601 The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows: Asset Category: Policy Index: Target Allocation U.S. corporate fixed income Bloomberg Barclays U.S. Corporate A or Better Index 75 % Global equity MSCI World Minimum Volatility Index 5 U.S. government fixed income Bloomberg Barclays U.S. Long Government Bond Index 14 High yield fixed income Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index 5 Cash Citigroup Three Month U.S. Treasury Bill Index 1 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation | Q. STOCK-BASED COMPENSATION Stock Compensation Plans On July 17, 2019 (the “Retirement Date”), former Chief Financial Officer Gregory Beecher retired as Vice President and Senior Advisor of Teradyne, and Teradyne entered into an agreement (the “Retirement Agreement”) with Mr. Beecher. Under the Retirement Agreement, Mr. Beecher’s unvested time-based restricted stock units and stock options granted prior to 2019 were modified to allow continued vesting; unvested time-based restricted stock units and stock options granted in 2019 were modified to allow continued vesting through January 31, 2023 (the “Non-Competition 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 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 2019; vested options or options that vest during the Non-Competition Period may be exercised for the remainder of the applicable option term. During 2019, Teradyne recorded a stock-based compensation expense of $2.1 million related to the Retirement Agreement. Under Teradyne’s stock compensation plans, Teradyne grants time-based restricted stock units, performance-based restricted stock units, stock options and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Time-based restricted stock unit awards granted to employees vest in equal annual installments over four years. Restricted stock unit awards granted to non-employee directors vest after a one Performance-based restricted stock units (“PRSUs”) granted to Teradyne’s executive officers may have a performance metric based on relative total shareholder return (“TSR”). Teradyne’s three capped at four times the grant date value for grants prior to 2019. The TSR PRSUs will vest upon the three-year anniversary of the grant date. The TSR PRSUs are valued using a Monte Carlo simulation model. The number of units expected to be earned, based upon the achievement of the TSR market condition, is factored into the grant date Monte Carlo valuation. Compensation expense is recognized on a straight-line basis over the shorter of the three-year service period or the period from the grant to the date described in the retirement provisions below. Compensation expense for executive officers meeting the retirement provisions prior to the grant date is recognized during the year following the grant. Compensation expense is recognized regardless of the eventual number of units that are earned based upon the market condition, provided the executive officer remains an employee at the end of the three-year period. Compensation expense is reversed if at any time during the three-year service period the executive officer is no longer an employee, subject to the retirement and termination eligibility provisions noted below. PRSUs granted to Teradyne’s executive officers may also have a performance metric based on three-year If a PRSU recipient’s employment ends prior to the determination of the performance percentage due to (1) permanent disability or death or (2) retirement or termination other than for cause, after attaining both at least age sixty three Stock options to purchase Teradyne’s common stock at 100% of the fair market value on the grant date vest in equal annual installments over four years from the grant date and have a maximum term of seven years. During 2020, 2019 and 2018, Teradyne granted 0.4 million, 0.8 million and 0.6 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $71.31, $37.65, and $45.92, respectively. During 2020, 2019 and 2018, Teradyne granted 0.1 million of service-based restricted stock unit awards to non-employee directors at a weighted average grant date fair value of $66.56, $48.03, and $35.81, respectively. During 2020, 2019 and 2018, Teradyne granted 0.1 million TSR PRSUs, with a grant date fair value of $89.93, $51.51, and $54.85, respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: 2020 2019 2018 Risk-free interest rate 1.5 % 2.6 % 2.2 % Teradyne volatility-historical 34.9 % 31.9 % 26.8 % NYSE Composite Index volatility-historical 11.4 % 11.9 % 12.4 % Dividend yield 0.6 % 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 2020, 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 $0.40 per share for 2020 and $0.36 per share for 2019 and 2018, divided by Teradyne’s stock price on the grant date of $72.10 for the 2020 grants, $37.95 for the 2019 grants and $47.70 for the 2018 grants. During 2020, 2019 and 2018, Teradyne granted 0.1 million of PBIT PRSUs with a grant date fair value of $70.94, $36.88 and $46.62, respectively. During 2020, 2019 and 2018, Teradyne granted 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $20.93, $10.64, and $12.17, respectively. The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: 2020 2019 2018 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 1.5 % 2.5 % 2.4 % Volatility-historical 32.0 % 30.1 % 26.4 % Dividend yield 0.5 % 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 $0.40 per share divided by Teradyne’s stock price on the grant date of $72.61 for the 2020 grants, $37.95 for the 2019 grants and $47.70 for the 2018 grants. Stock compensation plan activity for the years 2020, 2019, and 2018, is as follows: 2020 2019 2018 (in thousands) Restricted Stock Units: Non-vested at January 1 2,269 2,454 3,174 Awarded 616 1,139 790 Vested (1,028 ) (1,237 ) (1,382 ) Forfeited (68 ) (87 ) (128 ) Non-vested at December 31 1,789 2,269 2,454 Stock Options: Outstanding at January 1 319 506 531 Granted 56 102 69 Exercised (159 ) (280 ) (94 ) Forfeited — (7 ) — Expired — (2 ) — Outstanding at December 31 216 319 506 Vested and expected to vest at December 31 216 319 506 Exercisable at December 31 27 85 256 Total shares available for the years 2020, 2019, and 2018: 2020 2019 2018 (in thousands) Shares available: Available for grant at January 1 6,727 7,874 8,605 Options granted (56 ) (102 ) (69 ) Options forfeited — 7 Restricted stock units awarded (616 ) (1,139 ) (790 ) Restricted stock units forfeited 68 87 128 Available for grant at December 31 6,123 6,727 7,874 Weighted average restricted stock unit award date fair value information for the years 2020, 2019, and 2018, is as follows: 2020 2019 2018 Non-vested at January 1 $ 35.58 $ 29.22 $ 21.71 Awarded 72.76 39.08 45.99 Vested 31.53 23.59 20.20 Forfeited 45.36 35.60 24.67 Non-vested at December 31 $ 47.84 $ 35.58 $ 29.22 Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2020, 2019, and 2018 is as follows: 2020 2019 2018 (in thousands) Vested $ 71,582 $ 46,110 $ 63,688 Outstanding 214,509 154,752 77,015 Expected to vest 210,301 152,374 77,187 Restricted stock units weighted average remaining contractual terms (in years) information at December 31 for the years 2020, 2019, and 2018 is as follows: 2020 2019 2018 Outstanding 0.96 1.02 0.92 Expected to vest 0.96 1.02 0.91 Weighted average stock options exercise price information for the year ended December 31, 2020 is as follows: 2020 Outstanding at January 1 $ 29.91 Options granted 72.61 Options exercised 23.77 Options forfeited — Options cancelled — Outstanding at December 31 45.59 Exercisable at December 31 23.51 The total cash received from employees as a result of employee stock options exercises during the years ended December 31, 2020, 2019, and 2018, was $3.8 million, $3.7 million, and $1.0 million, respectively. In connection with these exercises, the tax benefit realized by Teradyne for the years ended December 31, 2020, 2019, and 2018, was $1.5 million, $2.0 million, and $0.4 million, respectively. Stock option aggregate intrinsic value information for the years ended December 31, 2020, 2019, and 2018 is as follows: 2020 2019 2018 (in thousands) Exercised $ 9,682 $ 9,232 $ 2,960 Outstanding 16,083 12,218 7,359 Vested and expected to vest 13,499 7,701 7,359 Exercisable 2,584 4,517 5,905 Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2020, 2019, and 2018 is as follows: 2020 2019 2018 Outstanding 4.6 4.2 3.6 Vested and expected to vest 4.9 5.0 3.6 Exercisable 2.5 2.1 2.4 As of December 31, 2020, total unrecognized expense related to non-vested restricted stock unit awards and stock options was $44 million and is expected to be recognized over a weighted average period of 2.4 years. Employee Stock Purchase Plan Under the ESPP, eligible employees may purchase shares of common stock through regular payroll deductions of up to 10% of their compensation, to a maximum of shares with a fair market value of $25,000 per calendar year, not to exceed 6,000 shares. Under the plan, the price paid for the common stock is equal to 85% of the stock price on the last business day of the six-month purchase period. In July 2020, 0.2 million shares of common stock were issued to employees who participated in the plan during the first half of 2020 at the price of $71.83 per share. In January 2021, Teradyne issued 0.1 million shares of common stock to employees who participated in the plan during the second half of 2020 at the price of $101.91 per share. In July 2019, 0.3 million shares of common stock were issued to employees who participated in the plan during the first half of 2019 at the price of $40.72 per share. In January 2020, Teradyne issued 0.2 million shares of common stock to employees who participated in the plan during the second half of 2019 at the price of $57.96 per share. In July 2018, 0.3 million shares of common stock were issued to employees who participated in the plan during the first half of 2018 at the price of $32.36 per share. In January 2019, Teradyne issued 0.4 million shares of common stock to employees who participated in the plan during the second half of 2018 at the price of $26.67 per share. As of December 31, 2020, there were 1.4 million shares available for grant under the ESPP. The following table provides the effect to income from operations for recording stock-based compensation for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 (in thousands) Cost of revenues $ 4,227 $ 3,480 $ 3,129 Engineering and development 12,039 9,913 9,181 Selling and administrative 28,640 24,504 21,267 Stock-based compensation 44,906 37,897 33,577 Income tax benefit (13,060 ) (8,360 ) (12,036 ) Total stock-based compensation expense after income taxes $ 31,846 $ 29,537 $ 21,541 |
Savings Plan
Savings Plan | 12 Months Ended |
Dec. 31, 2020 | |
Savings Plan | R. SAVINGS PLAN Teradyne sponsors a defined contribution employee retirement savings plan (“Savings Plan”) covering substantially all U.S. employees. Under the Savings Plan, employees may contribute up to 20% of their compensation (subject to Internal Revenue Service limitations). The Savings Plan provides for a discretionary employer match that is determined each year. In 2020, 2019 and 2018, Teradyne matched 100% of eligible employee contributions up to 4% of their compensation for employees not accruing benefits in the U.S. Qualified Pension Plan. There was no match for employees still actively accruing benefits in the U.S. Qualified Pension Plan. Teradyne’s contributions vest 25% per year for the first four years of employment, and contributions for those employees with In addition, Teradyne sponsors an unfunded U.S. Supplemental Savings Plan to provide savings benefits in excess of those allowed by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. The provisions of this plan are the same as the Savings Plan. The liability for the U.S. Supplemental Savings Plan at December 31, 2020 and 2019, was $38.0 million and $32.7 million, respectively, and is included in retirement plan liabilities. Teradyne contributes to defined contributions savings plans for its foreign employees. Under Teradyne’s savings plans, amounts charged to the statements of operations for the years ended December 31, 2020, 2019, and 2018 were $21.7 million, $20.9 million, and $19.4 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | S. INCOME TAXES The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows: 2020 2019 2018 (in thousands) Income before income taxes: U.S. $ 312,153 $ 192,442 $ 189,691 Non-U.S. 588,862 333,330 278,110 $ 901,015 $ 525,772 $ 467,801 Provision (benefit) for income taxes: Current: U.S. Federal $ 58,678 $ 19,297 $ (59,122 ) Non-U.S. 75,193 52,810 45,083 State (1,315 ) (4,347 ) 1,721 132,556 67,760 (12,318 ) Deferred: U.S. Federal (12,604 ) (4,522 ) 29,252 Non-U.S. (5,127 ) (8,007 ) (1,243 ) State 2,043 3,073 331 (15,688 ) (9,456 ) 28,340 Total provision for income taxes: $ 116,868 $ 58,304 $ 16,022 Income tax expense for 2020, 2019 and 2018 totaled $116.9 million, $58.3 million, and $16.0 million, respectively. The effective tax rate for 2020, 2019 and 2018 was 13.0%, 11.1% and 3.4%, respectively. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”), making significant changes to the Internal Revenue Code. The Tax Reform Act has significant direct and indirect implications for accounting for income taxes under ASC 740, “Accounting for Income Taxes” some of which could not be calculated with precision until further clarification and guidance was made available from tax authorities, regulatory bodies or the FASB. In light of this uncertainty, on December 22, 2017 the SEC issued Staff Accounting Bulletin (“SAB”) No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” to address uncertainty in the application of U.S. GAAP when the registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, Teradyne recorded $186.0 million of additional income tax expense in the fourth quarter of 2017 which represented Teradyne’s best estimate of the impact of the Tax Reform Act in accordance with Teradyne’s understanding of the Tax Reform Act and available guidance as of that date. The $186.0 million was primarily composed of expense of $161.0 million related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings, $33.6 million of expense related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, and a benefit of $10.3 million associated with the impact of correlative adjustments on uncertain tax positions. In accordance with the requirements of SAB 118, in the fourth quarter of 2018, Teradyne completed its analysis of the effect of the Tax Reform Act based on the application of the most recently available guidance as of December 31, 2018 and recorded $49.5 Teradyne has made an accounting policy election to account for global intangible low-taxed income (“GILTI”) as a component of tax expense in the period in which Teradyne is subject to the rules and therefore did not provide any deferred tax impacts of GILTI in its consolidated financial statements. The increase in the effective tax rate from 2019 to 2020 is primarily attributable to a reduction in the benefit from releases of reserves for uncertain tax positions and a reduction in the benefit from foreign tax credits. These increases in expense were partially offset by a decrease in the transition tax on the mandatory deemed repatriation of foreign earnings and shift in the geographic distribution of income, which increases the income subject to taxation in lower tax rate jurisdictions relative to higher tax rate jurisdictions. On July 27, 2015, in Altera Corp. (“Altera”) v. Commissioner, the U.S. Tax Court issued an opinion invalidating the regulations relating to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued by the Tax Court in December 2015. The IRS appealed the decision in June 2016. On July 24, 2018, the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) issued a decision that was subsequently withdrawn and a reconstituted panel conferred on the appeal. On June 7, 2019, the Ninth Circuit upheld the cost-sharing regulations. On November 12, 2019 the Ninth Circuit denied Altera’s petition for rehearing of its case. Altera’s application for certiorari to the Supreme Court was declined on June 22, 2020. In the fourth quarter of 2019 and 2020, Teradyne recognized tax expense of approximately $6.3 million and $2.3 million, respectively, related to the inclusion of stock-based compensation in its intercompany cost-sharing arrangement. The increase in the effective tax rate from 2018 to 2019 is primarily attributable to increases in expense associated with GILTI and the transition tax on the mandatory deemed repatriation of foreign earnings. These increases in expense were partially offset by increased benefit from the U.S. foreign derived intangible income deduction, foreign tax credits and a net reduction of reserves for uncertain tax positions. A reconciliation of the effective tax rate for the years 2020, 2019 and 2018 is as follows: 2020 2019 2018 U.S. statutory federal tax rate 21.0 % 21.0 % 21.0 % U.S. global intangible low-taxed income 5.7 6.2 0.3 State income taxes, net of federal tax benefit 0.3 0.5 0.1 Foreign taxes (5.6 ) (4.0 ) (2.0 ) Foreign tax credits (4.8 ) (5.9 ) (2.2 ) U.S. foreign derived intangible income (2.2 ) (2.6 ) (1.8 ) U.S. research and development credit (1.3 ) (1.8 ) (2.2 ) Equity compensation (0.6 ) (0.7 ) (1.2 ) Uncertain tax positions (0.1 ) (4.3 ) 1.0 U.S. transition tax — 1.9 (10.5 ) Impact of rate change on deferred taxes — — 0.3 Other, net 0.6 0.8 0.6 13.0 % 11.1 % 3.4 % Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings attributable to the Singapore tax holiday for the years ended December 31, 2020, 2019 and 2018 were $29.9 million or $0.16 per diluted share, $15.1 million or $0.08 per diluted share and $11.9 million or $0.06 per diluted share, respectively. In November 2020, Teradyne entered into an agreement with the Singapore Economic Development Board which extended our Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025. Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2020 and 2019 were as follows: 2020 2019 (in thousands) Deferred tax assets: Tax credits $ 87,595 $ 79,480 Accruals 33,156 25,424 Pension liabilities 28,348 24,459 Inventory valuations 18,427 18,572 Lease liability 12,627 13,093 Deferred revenue 9,235 7,622 Equity compensation 6,543 7,042 Vacation accrual 5,890 4,768 Investment impairment 3,292 3,292 Net operating loss carryforwards 1,823 2,705 Other 626 187 Gross deferred tax assets 207,562 186,644 Less: valuation allowance (84,962 ) (77,177 ) Total deferred tax assets $ 122,600 $ 109,467 Deferred tax liabilities: Depreciation $ (14,525 ) $ (18,238 ) Intangible assets (12,726 ) (16,705 ) Right of use assets (10,688 ) (11,197 ) Contingent consideration (3,515 ) — Marketable securities (3,344 ) (1,601 ) Other (710 ) (611 ) Total deferred tax liabilities $ (45,508 ) $ (48,352 ) Net deferred assets $ 77,092 $ 61,115 At December 31, 2020, Teradyne had operating loss carryforwards that expire in the following years: State Operating Loss Carryforwards Foreign Operating Loss Carryforwards (in thousands) 2021 $ 333 $ — 2022 2,203 — 2023 3,368 — 2024 812 — 2025 191 — 2026-2030 7,452 — 2031-2035 2,147 68 Beyond 2035 73 — Non-expiring 870 3,923 Total $ 17,449 $ 3,991 Teradyne has approximately $116.3 million of tax credit carryforwards including federal business tax credits of approximately $1.9 million which expire in 2028 through 2030, and state tax credits of $114.3 million, of which $63.8 million do not expire and the remainder expires in the years 2021 through 2040. Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 (in thousands) Beginning balance as of January 1 $ 21,180 $ 43,395 $ 36,263 Additions: Tax positions for current year 1,082 1,322 4,716 Tax positions for prior years 66 8,043 2,626 Reductions: Tax positions for prior years (2,989 ) (31,397 ) (153 ) Expiration of statutes (1,436 ) (183 ) (57 ) Ending balance as of December 31 $ 17,903 $ 21,180 $ 43,395 Current year additions relate to federal and state research credits. Prior year additions primarily relate to stock-based compensation. Prior year reductions are primarily composed of federal and state reserves related to transfer pricing and research credits and resulted from the completion of the 2015 U.S. federal audit in the first quarter of 2019. Of the $17.9 million of unrecognized tax benefits as of December 31, 2020, $12.0 million would impact the consolidated income tax rate if ultimately recognized. The remaining $5.9 million would impact deferred taxes if recognized. As of December 31, 2020, Teradyne estimates that it is reasonably possible that the balance of unrecognized tax benefits may decrease approximately $1.6 million in the next twelve months as a result of a lapse of statutes of limitation. The estimated decrease relates to loss carryforwards, research credits and U.S. manufacturing activities deductions. Teradyne records all interest and penalties related to income taxes as a component of income tax expense. Accrued interest and penalties related to income tax items at December 31, 2020 and 2019 amounted to $1.2 million and $1.4 million, respectively. For the years ended December 31, 2020, 2019 and 2018, benefit of $0.2 million, expense of $1.1 million and benefit of $0.1 million, respectively, was recorded for interest and penalties related to income tax items. Teradyne is subject to U.S. federal income tax, as well as income tax in multiple state, local and foreign jurisdictions. As of December 31, 2020, all material state and local income tax matters have been concluded through 2015, all material federal income tax matters have been concluded through 2016 and all material foreign income tax matters have been concluded through 2012. However, in some jurisdictions, including the United States, operating losses and tax credits may be subject to adjustment until such time as they are utilized and the year of utilization is closed to adjustment. As of December 31, 2020, Teradyne is not permanently reinvested with respect to the unremitted earnings of non-U.S. subsidiaries to the extent that those earnings exceed local statutory and operational requirements. Remittance of those earnings is not expected to result in material income tax. |
Operating Segment, Geographic a
Operating Segment, Geographic and Significant Customer Information | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segment, Geographic and Significant Customer Information | T. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION Teradyne has four reportable segments (Semiconductor Test, System Test, Wireless Test and Industrial Automation). Each of the reportable segment represents an individual operating segment. On September 15, 2020, Teradyne announced the appointment of Gregory Smith as President of Teradyne’s Industrial Automation reportable segment effective October 1, 2020. With the appointment of Gregory Smith, the Industrial Automation reportable segment is considered one operating segment and one reporting unit. 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 storage and system level test, defense/aerospace instrumentation test, and circuit-board test. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. 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. Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments are the same as those described in Note B: “Accounting Policies.” Segment information for the years ended December 31, 2020, 2019, and 2018 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Other Consolidated (in thousands) 2020 Revenues $ 2,259,597 $ 409,729 $ 279,731 $ 173,016 $ (604 ) $ 3,121,469 Income (loss) before taxes (1)(2) 739,695 152,092 (24,019 ) 41,950 (8,703 ) 901,015 Total assets (3) 1,070,378 138,295 712,936 106,273 1,624,464 3,652,346 Property additions 168,055 3,092 8,899 4,931 — 184,977 Depreciation and amortization expense 64,998 3,426 36,242 6,258 15,819 126,743 2019 Revenues $ 1,552,571 $ 287,455 $ 298,139 $ 157,315 $ (515 ) $ 2,294,965 Income (loss) before taxes (1)(2) 416,973 93,543 (5,916 ) 35,585 (14,413 ) 525,772 Total assets (3) 784,808 131,428 671,559 97,299 1,101,920 2,787,014 Property additions 112,145 3,059 9,076 10,362 — 134,642 Depreciation and amortization expense 59,197 5,518 40,904 5,365 9,671 120,655 2018 Revenues $ 1,492,417 $ 216,132 $ 261,452 $ 132,006 $ (1,205 ) $ 2,100,802 Income (loss) before taxes (1)(2) 397,645 48,857 7,670 29,052 (15,423 ) 467,801 Total assets (3) 669,452 88,098 607,502 77,570 1,263,984 2,706,606 Property additions 94,496 3,469 11,188 5,226 — 114,379 Depreciation and amortization expense 58,095 6,430 36,755 5,328 6,616 113,224 (1) Included in Corporate and Other are: contingent consideration adjustments, investment impairment, pension and postretirement plans actuarial gains (losses), severance charges, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. (3) Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. Included in each segment are charges and credits in the following line items in the statements of operations: For the Year Ended December 31, 2020 2019 2018 (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 11,013 $ 8,731 $ 6,822 Contract termination settlement fee 4,000 — — Restructuring and other—employee severance — 1,277 8,429 System Test: Cost of revenues—inventory charge $ 887 $ 2,000 $ 1,175 Industrial Automation: Restructuring and other—acquisition related expenses and compensation $ 985 $ 741 $ 1,163 Cost of revenues—inventory charge 834 508 680 Restructuring and other—employee severance 1,584 796 — Wireless: Cost of revenues—inventory charge $ 4,800 $ 4,005 $ 2,565 Corporate and Other: Restructuring and other—AutoGuide contingent consideration adjustment $ (19,724 ) $ 2,976 $ — Restructuring and other—MiR contingent consideration adjustment (3,546 ) (22,199 ) 17,666 Restructuring and other—acquisition related expenses and compensation 1,728 1,765 3,422 Other (income) expense, net—investment impairment charge — 15,000 — Selling and administrative—equity modification charge 766 2,108 — Restructuring and other—Universal Robots contingent consideration adjustment — — (16,679 ) Information as to Teradyne’s revenues by country is as follows: 2020 2019 2018 (in thousands) Revenues from customers (1): Taiwan $ 1,178,068 $ 485,681 $ 516,322 China 465,722 514,327 348,942 Korea 391,571 239,504 163,224 United States 321,674 333,059 282,869 Europe 205,587 219,015 223,207 Japan 143,983 175,322 158,281 Thailand 138,787 87,503 59,184 Singapore 76,460 84,111 108,618 Philippines 68,887 54,560 77,996 Malaysia 56,096 58,200 122,797 Rest of the World 74,634 43,683 39,362 $ 3,121,469 $ 2,294,965 $ 2,100,802 (1) Revenues attributable to a country are based on location of customer site. In 2020, revenues from Taiwan Semiconductor Manufacturing Company Ltd., a customer of Teradyne’s Semiconductor Test segment, accounted for 15% of Teradyne’s consolidated revenues. In 2019 and 2018, no single direct customer accounted for more than 10% of Teradyne’s consolidated revenues. Teradyne estimates consolidated revenues driven by one OEM customer, combining direct sales to that customer with sales to the customer’s OSATs (which include Taiwan Semiconductor Manufacturing Company Ltd.), accounted for estimates consolidated revenues driven by Huawei Technologies Co., Ltd. (“Huawei”), combining direct sales to that customer with sales to the customer’s OSATs, accounted for approximately 3% and 11% of its consolidated revenues in 2020 and 2019, respectively. Long-lived assets by geographic area: United States Foreign(1) Total (in thousands) December 31, 2020 $ 291,234 $ 158,135 $ 449,369 December 31, 2019 $ 252,812 $ 124,943 $ 377,755 (1) As of December 31, 2020 and 2019, long-lived assets attributable to Singapore were $62.5 million and $35.2 million, respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2020 | |
Stock Repurchase Program | U. STOCK REPURCHASE PROGRAM In 2018, Teradyne repurchased 21.6 million shares of common stock for $823.5 million at an average price per share of $38.06. In 2019, Teradyne repurchased 10.9 million shares of common stock for $500.0 million at an average price per share of $45.89. The cumulative repurchases as of December 31, 2019, for the 2018 stock repurchase program, totaled 32.5 million shares of common stock for $1,323.0 million at an average price per share of $40.68. In January 2020, Teradyne’s Board of Directors cancelled the January 2018 repurchase program and approved a new stock repurchase program for up to $1.0 billion of common stock. On April 1, 2020, Teradyne suspended its share repurchase program. In 2020, Teradyne repurchased 1.5 million shares of common stock for $88.5 million at an average price of $58.33 per share. In January 2021, Teradyne’s Board of Directors cancelled the January 2020 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. Teradyne intends to repurchase a minimum of $600 million in 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | V. SUBSEQUENT EVENTS In January 2021, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.10 per share to be paid on March 19, 2021 to shareholders of record as of February 19, 2021. 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. |
Supplementaryd Information
Supplementaryd Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplementary Information | SUPPLEMENTARY INFORMATION (Unaudited) The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein. 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2)(5) (3)(5) (4)(5) (in thousands, except per share amounts) Revenues: Products $ 610,906 $ 734,630 $ 697,745 $ 647,625 Services 93,449 104,031 121,739 111,343 Total revenues 704,355 838,661 819,484 758,968 Cost of revenues: Cost of products 259,996 322,732 300,174 274,574 Cost of services 38,809 44,456 60,382 34,605 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 298,805 367,188 360,556 309,179 Gross profit 405,550 471,473 458,928 449,789 Operating expenses: Selling and administrative 111,388 113,259 115,840 124,279 Engineering and development 85,159 94,102 94,909 100,795 Acquired intangible assets amortization 9,891 8,941 6,219 5,752 Restructuring and other (7,606 ) 37,222 (27,701 ) (15,117 ) Total operating expenses 198,832 253,524 189,267 215,709 Income from operations 206,718 217,949 269,661 234,080 Non-operating (income) expense: Interest income (2,751 ) (1,368 ) (1,071 ) (793 ) Interest expense 5,551 6,043 6,237 6,351 Other (income) expense, net 6,849 (4,017 ) 764 5,597 Income before income taxes 197,069 217,291 263,731 222,925 Income tax provision 20,878 28,383 41,013 26,595 Net income $ 176,191 $ 188,908 $ 222,718 $ 196,330 Net income per common share—basic $ 1.06 $ 1.14 $ 1.34 $ 1.18 Net income per common share—diluted $ 0.97 $ 1.05 $ 1.21 $ 1.05 Cash dividend declared per common share $ 0.10 $ 0.10 $ 0.10 $ 0.10 (1) Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. (2) Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. (3) Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. (4) Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. (5) Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2) (3) (4)(5)(6) (in thousands, except per share amounts) Revenues: Products $ 393,442 $ 457,511 $ 488,170 $ 548,552 Services 100,657 106,667 93,868 106,098 Total revenues 494,099 564,178 582,038 654,650 Cost of revenues: Cost of products 165,368 193,299 197,196 226,184 Cost of services 41,096 46,961 39,804 45,228 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 206,464 240,260 237,000 271,412 Gross profit 287,635 323,918 345,038 383,238 Operating expenses: Selling and administrative 102,013 108,811 109,166 117,092 Engineering and development 76,791 81,434 77,804 86,794 Acquired intangible assets amortization 10,634 10,083 9,647 9,784 Restructuring and other 5,112 (10,404 ) (6,500 ) (2,088 ) Total operating expenses 194,550 189,924 190,117 211,582 Income from operations 93,085 133,994 154,921 171,656 Non-operating (income) expense: Interest income (4,989 ) (4,384 ) (4,433 ) (3,185 ) Interest expense 5,520 5,800 5,463 5,441 Other (income) expense, net (1,425 ) 1,401 2,158 20,514 Income before income taxes 93,979 131,177 151,733 148,886 Income tax provision (benefit) (15,159 ) 33,780 15,873 23,811 Net income $ 109,138 $ 97,397 $ 135,860 $ 125,075 Net income per common share—basic $ 0.63 $ 0.57 $ 0.80 $ 0.75 Net income per common share—diluted $ 0.62 $ 0.55 $ 0.75 $ 0.69 Cash dividend declared per common share $ 0.09 $ 0.09 $ 0.09 $ 0.09 (1) Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. (2) Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. (3) Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. (4) Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. (5) Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. (6) Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation and Qualifying Accounts | TERADYNE, INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Column A Column B Column C Column D Column E Column F Description Balance at Beginning of Period Additions Charged to Cost and Expenses Other Deductions Balance at End of Period (in thousands) Valuation reserve deducted in the balance sheet from the asset to which it applies: Accounts receivable: 2020 Allowance for doubtful account $ 1,736 $ 356 $ 32 $ 90 $ 2,034 2019 Allowance for doubtful account $ 1,673 $ 87 $ 28 $ 52 $ 1,736 2018 Allowance for doubtful account $ 2,219 $ — $ 20 $ 566 $ 1,673 Column A Column B Column C Column D Column E Column F Description Balance at Beginning of Period Additions Charged to Cost and Expenses Other Deductions Balance at End of Period (in thousands) Valuation reserve deducted in the balance sheet from the asset to which it applies: Inventory: 2020 Inventory reserve $ 103,556 $ 17,534 $ (521 ) $ 9,982 $ 110,587 2019 Inventory reserve $ 100,779 $ 15,244 $ (85 ) $ 12,382 $ 103,556 2018 Inventory reserve $ 102,896 $ 11,242 $ 368 $ 13,727 $ 100,779 Column A Column B Column C Column D Column E Column F Description Balance at Beginning of Period Additions Charged to Cost and Expenses Other Deductions Balance at End of Period (in thousands) Valuation reserve deducted in the balance sheet from the asset to which it applies: Deferred taxes: 2020 Valuation allowance $ 77,177 $ 7,785 $ — $ — $ 84,962 2019 Valuation allowance $ 69,852 $ 7,325 $ — $ — $ 77,177 2018 Valuation allowance $ 63,919 $ 6,333 $ — $ 400 $ 69,852 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation | Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, accounts receivable, income taxes, deferred tax assets and liabilities, pensions, warranties, contingent consideration liabilities, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and our markets. Management is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of February 22, 2021, the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results may differ significantly from these estimates under different assumptions or conditions. |
Preparation of Financial Statements and Use of Estimates | Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, accounts receivable, income taxes, deferred tax assets and liabilities, pensions, warranties, contingent consideration liabilities, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and our markets. Management is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of February 22, 2021, the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results may differ significantly from these estimates under different assumptions or conditions. |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers Teradyne adopted Accounting Standard Codification (“ASC”) 606 “Revenue from Contracts with Customers” on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. In accordance with ASC 606, Teradyne recognizes revenues, when or as control is transferred to a customer. Teradyne’s determination of revenue is dependent upon a five step process outlined below. • Teradyne accounts for a contract with a customer when there is written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. • Teradyne periodically enters into contracts with customers in which a customer may purchase a combination of goods and services, such as products with extended warranty obligations. Teradyne determines performance obligations by assessing whether the products or services are distinct from the other elements of the contract. In order to be distinct, the product or service must perform either on its own or with readily available resources and must be separate within the context of the contract. • Teradyne considers the amount stated on the face of the purchase order to be the transaction price. Teradyne does not have material variable consideration which could impact the stated purchase price agreed to by Teradyne and the customer. • Transaction price is allocated to each individual performance obligation based on the standalone selling price of that performance obligation. Teradyne uses standalone transactions when available to value each performance obligation. If standalone transactions are not available, Teradyne will estimate the standalone selling price through market assessments or cost plus a reasonable margin analysis. Any discounts from standalone selling price are spread proportionally to each performance obligation. • In order to determine the appropriate timing for revenue recognition, Teradyne first determines if the transaction meets any of three criteria for over time recognition. If the transaction meets the criteria for over time recognition, Teradyne recognizes revenue as the good or service is delivered. Teradyne uses input variables such as hours or months utilized or costs incurred to determine the amount of revenue to recognize in a given period. Input variables are used as they best align consumption with benefit to the customer. For transactions that do not meet the criteria for over time recognition, Teradyne will recognize revenue at a point in time based on an assessment of the five criteria for transfer of control. Teradyne has concluded that revenue should be recognized when shipped or delivered based on contractual terms. Typically, acceptance of Teradyne’s products and services is a formality as Teradyne delivers similar systems, instruments and robots to standard specifications. In cases where acceptance is not deemed a formality, Teradyne will defer revenue recognition until customer acceptance. Performance Obligations Products Teradyne products consist primarily of semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage test systems and instruments, circuit-board test and inspection systems and instruments, wireless test systems and industrial automation products. Teradyne’s hardware is recognized at a point in time upon transfer of control to the customer. Services Teradyne services consist of extended warranties, training and application support, service agreements, post contract customer support (“PCS”) and replacement parts. Each service is recognized based on relative standalone selling price. Extended warranty, training and support, service agreements and PCS are recognized over time based on the period of service. Replacement parts are recognized at a point in time upon transfer of control to the customer. Teradyne does not allow customer returns or provide refunds to customers for any products or services. Teradyne products include a standard 12-month warranty. This warranty is not considered a distinct performance obligation because it does not obligate Teradyne to provide a separate service to the customer and it cannot be purchased separately. Cost related to warranty are included in cost of revenues when product revenues are recognized. As of December 31, 2020 and 2019, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2020 2019 (in thousands) Maintenance, service and training $ 77,654 $ 63,815 Customer advances, undelivered elements and other 63,438 56,358 Extended warranty 51,929 30,677 Total deferred revenue and customer advances $ 193,021 $ 150,850 |
Product Warranty | Product Warranty Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance 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.The balance below is included in other accrued liabilities: Amount (in thousands) Balance at December 31, 2017 $ 8,200 Acquisition 41 Accruals for warranties issued during the period 13,045 Accruals related to pre-existing warranties 921 Settlements made during the period (14,298 ) Balance at December 31, 2018 7,909 Acquisition 14 Accruals for warranties issued during the period 14,106 Accruals related to pre-existing warranties 4,026 Settlements made during the period (17,059 ) Balance at December 31, 2019 8,996 Accruals for warranties issued during the period 28,490 Accruals related to pre-existing warranties 821 Settlements made during the period (21,674 ) Balance at December 31, 2020 $ 16,633 When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2017 $ 24,438 Deferral of new extended warranty revenue 23,753 Recognition of extended warranty deferred revenue (20,769 ) Balance at December 31, 2018 27,422 Deferral of new extended warranty revenue 23,271 Recognition of extended warranty deferred revenue (20,016 ) Balance at December 31, 2019 30,677 Deferral of new extended warranty revenue 41,694 Recognition of extended warranty deferred revenue (20,442 ) Balance at December 31, 2020 $ 51,929 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $131.1 million and $143.6 million during 2020 and 2019, respectively. Factoring fees for the sales of receivables are recorded in interest expense and are not material. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. On a quarterly basis, Teradyne uses consistent methodologies to evaluate all inventories for net realizable value. Teradyne records a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process. The inventory valuation is based upon assumptions about future demand, product mix and possible alternative uses. |
Investments | Investments Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “ Investments—Debt and Equity Securities • The length of time and the extent to which the market value has been less than cost; • The financial condition and near-term prospects of the issuer; and • The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2020 and 2019. As defined in ASC 820-10, “ Fair Value Measurements and Disclosures, Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. In accordance with ASC 820-10, Teradyne measures its debt and equity investments at fair value. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. |
Financial Assets and Financial Liabilities | Financial Assets and Financial Liabilities In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, “ Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities |
Prepayments | Prepayments Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2020 2019 (in thousands) Contract manufacturer and supplier prepayments $ 212,286 $ 143,392 Prepaid taxes 9,361 8,046 Prepaid maintenance and other services 13,116 8,503 Other prepayments 15,329 16,753 Total prepayments $ 250,092 $ 176,694 |
Retirement and Postretirement Plans | Retirement and Postretirement Plans Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. |
Retirement Benefits | Retirement Benefits In March 2017, the FASB issued ASU 2017-07, “ Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Goodwill, Intangible and Long-Lived Assets | Goodwill, Intangible and Long-Lived Assets Teradyne accounts for goodwill and intangible assets in accordance with ASC 350-10, “ Intangibles-Goodwill and Other. of December 31, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. In accordance with ASC 350-10, Teradyne has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying amounts, a quantitative goodwill impairment test is not required. In accordance with ASC 360-10, “ Impairment or Disposal of Long-Lived Assets, |
Business Combination | Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flows valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 Building improvements 5 Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 Machinery, equipment and software 3 Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2020, 2019, and 2018 was $7.3 million, $5.0 million, and $3.8 million, respectively. |
Leases | Leases Teradyne adopted Accounting Standards Update (“ASU”) 2016-02, “ Leases (Topic 842) Leases (Topic 842): Targeted Improvements Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne. As of December 31, 2020, Teradyne does not have material leases that have not yet commenced. Teradyne determines if the lease is an operating or finance lease 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 components such as common area maintenance. Teradyne elected the practical expedient to account for the lease and non-lease components as a single lease component. For leases with a term of one year or less Teradyne has elected not to record the lease asset or liability. The lease payments are recognized in the consolidated statement of earnings on a straight-line basis over the lease term. Teradyne includes lease costs within cost of revenues and operating expenses. See Note I: “Leases.” |
Engineering and Development Costs | Engineering and Development Costs Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring engineering charges related to product design, allocated facility costs, depreciation, and tooling costs. |
Stock Compensation Plans and Employee Stock Purchase Plan | Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “ Compensation-Stock Compensation Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows. Teradyne elects to account for forfeitures by applying an estimated forfeiture rate and recognizes compensation costs only for those stock-based compensation awards expected to vest. Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Teradyne performed the required assessment of positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes.” |
Advertising Costs | Advertising Costs Teradyne expenses all advertising costs as incurred. Advertising costs were $12.8 million, $16.6 million and $15.4 million in 2020, 2019 and 2018, respectively. |
Translation of Non-U.S. Currencies | Translation of Non-U.S. Currencies The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2020, 2019, and 2018, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $2.6 million, $(1.6) million, and $(2.5) million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income (loss) per common share is calculated by dividing net income (loss) by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne has determined that it has the ability and intent to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, Teradyne is accounting for the conversion spread using the treasury stock method. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities and foreign currency translation adjustment. Prior to 2018, comprehensive income (loss) included unrealized gains and losses on investments in equity marketable securities. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue and Customer Advances | As of December 31, 2020 and 2019, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2020 2019 (in thousands) Maintenance, service and training $ 77,654 $ 63,815 Customer advances, undelivered elements and other 63,438 56,358 Extended warranty 51,929 30,677 Total deferred revenue and customer advances $ 193,021 $ 150,850 |
Other Accrued Liabilities | The balance below is included in other accrued liabilities: Amount (in thousands) Balance at December 31, 2017 $ 8,200 Acquisition 41 Accruals for warranties issued during the period 13,045 Accruals related to pre-existing warranties 921 Settlements made during the period (14,298 ) Balance at December 31, 2018 7,909 Acquisition 14 Accruals for warranties issued during the period 14,106 Accruals related to pre-existing warranties 4,026 Settlements made during the period (17,059 ) Balance at December 31, 2019 8,996 Accruals for warranties issued during the period 28,490 Accruals related to pre-existing warranties 821 Settlements made during the period (21,674 ) Balance at December 31, 2020 $ 16,633 |
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances | The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2017 $ 24,438 Deferral of new extended warranty revenue 23,753 Recognition of extended warranty deferred revenue (20,769 ) Balance at December 31, 2018 27,422 Deferral of new extended warranty revenue 23,271 Recognition of extended warranty deferred revenue (20,016 ) Balance at December 31, 2019 30,677 Deferral of new extended warranty revenue 41,694 Recognition of extended warranty deferred revenue (20,442 ) Balance at December 31, 2020 $ 51,929 |
Schedule of Prepayments and Other Current Assets | Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2020 2019 (in thousands) Contract manufacturer and supplier prepayments $ 212,286 $ 143,392 Prepaid taxes 9,361 8,046 Prepaid maintenance and other services 13,116 8,503 Other prepayments 15,329 16,753 Total prepayments $ 250,092 $ 176,694 |
Useful Lives of Assets | Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 Building improvements 5 Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 Machinery, equipment and software 3 |
Acquisitions and Investment i_2
Acquisitions and Investment in Other Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2019 December 31, 2018 (in thousands, except per share amount) Revenues $ 2,303,737 $ 2,111,373 Net income $ 464,602 $ 442,082 Net income per common share: Basic $ 2.73 $ 2.36 Diluted $ 2.59 $ 2.30 |
Mobile Industrial Robots (MiR) | |
Final Allocation of Purchase Price | The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,976 Intangible assets 80,670 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current assets 1,336 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (18,007 ) Other long-term liabilities (900 ) Total purchase price $ 197,778 |
Components of Intangible Assets and Their Estimated Useful Lives at Acquisition Date | Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful (in thousands) (in 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 |
Autoguide LLC [Member] | |
Final Allocation of Purchase Price | The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 41,223 Intangible assets 37,660 Tangible assets acquired and liabilities assumed: Other current assets 3,661 Non-current assets 1,227 Accounts payable and current liabilities (1,223 ) Long-term other liabilities (949 ) Total purchase price $ 81,599 |
Components of Intangible Assets and Their Estimated Useful Lives at Acquisition Date | Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful (in thousands) (in years) Developed technology $ 24,590 6.0 Customer relationships 7,360 6.0 Trademarks and tradenames 5,450 7.0 Backlog 260 0.3 Total intangible assets $ 37,660 6.1 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition | The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Test Industrial Automation Wireless Corporate and Other Total System on-a-chip Memory System Test Universa l Mobile AutoGuide (in thousands) For the Year Ended December 31, 2020 (1) Timing of Revenue Recognition Point in Time $ 1,659,414 $ 363,324 $ 348,454 $ 214,212 $ 44,622 $ 10,911 $ 163,834 $ (604 ) $ 2,804,166 Over Time 217,975 18,884 61,275 7,269 211 2,506 9,182 — 317,302 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 44,833 $ 13,417 $ 173,016 $ (604 ) $ 3,121,469 Geographical Market Asia Pacific $ 1,744,593 $ 364,000 $ 258,521 $ 60,277 $ 6,471 $ — $ 143,969 $ — $ 2,577,831 Americas 77,671 12,999 128,482 64,164 16,769 13,417 22,544 (604 ) 335,441 Europe, Middle East and Africa 55,125 5,209 22,726 97,040 21,593 — 6,503 — 208,196 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 44,833 $ 13,417 $ 173,016 $ (604 ) $ 3,121,469 For the Year Ended December 31, 2019 (1) Timing of Revenue Recognition Point in Time $ 1,070,375 $ 247,221 $ 237,686 $ 244,515 $ 44,329 $ 1,144 $ 148,322 $ (515 ) $ 1,993,077 Over Time 216,065 18,910 49,769 7,843 74 234 8,993 — 301,888 Total $ 1,286,440 $ 266,131 $ 287,455 $ 252,358 $ 44,403 $ 1,378 $ 157,315 $ (515 ) $ 2,294,965 Geographical Market Asia Pacific $ 1,152,881 $ 238,714 $ 132,826 $ 68,027 $ 9,513 $ — $ 126,549 $ — $ 1,728,510 Americas 73,257 23,826 129,840 71,926 14,438 1,378 24,234 (515 ) 338,384 Europe, Middle East and Africa 60,302 3,591 24,789 112,405 20,452 — 6,532 — 228,071 Total $ 1,286,440 $ 266,131 $ 287,455 $ 252,358 $ 44,403 $ 1,378 $ 157,315 $ (515 ) $ 2,294,965 For the Year Ended December 31, 2018 (1) Timing of Revenue Recognition Point in Time $ 1,010,493 $ 259,366 $ 167,418 $ 232,448 $ 24,115 $ — $ 122,536 $ (1,205 ) $ 1,815,171 Over Time 208,456 14,102 48,714 4,889 — — 9,470 — 285,631 Total $ 1,218,949 $ 273,468 $ 216,132 $ 237,337 $ 24,115 $ — $ 132,006 $ (1,205 ) $ 2,100,802 Geographical Market Asia Pacific $ 1,067,879 $ 245,264 $ 90,989 $ 58,492 $ 5,950 $ — $ 107,872 $ — $ 1,576,446 Americas 78,498 17,353 96,763 70,478 7,326 — 19,166 (1,205 ) 288,379 Europe, Middle East and Africa 72,572 10,851 28,380 108,367 10,839 — 4,968 — 235,977 Total $ 1,218,949 $ 273,468 $ 216,132 $ 237,337 $ 24,115 $ — $ 132,006 $ (1,205 ) $ 2,100,802 (1) Includes $10.0 million, $8.4 million and $12.0 million in 2020, 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Composition of Inventories, Net | Inventories, net consisted of the following at December 31, 2020 and 2019: 2020 2019 (in thousands) Raw material $ 114,133 $ 118,595 Work-in-process 25,408 32,695 Finished goods 82,648 45,401 $ 222,189 $ 196,691 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at December 31, 2020 and 2019: 2020 2019 (in thousands) Land $ 17,207 $ 16,561 Buildings 108,221 107,282 Machinery, equipment and software 956,035 834,970 Furniture and fixtures 28,487 29,157 Leasehold improvements 61,276 59,378 Construction in progress 13,098 2,537 1,184,324 1,049,885 Less: accumulated depreciation 789,524 729,669 $ 394,800 $ 320,216 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2020 and 2019: December 31, 2020 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 $ 443,166 $ — $ — $ 443,166 Cash equivalents 347,768 123,187 — 470,955 Available for sale securities: U.S. Treasury securities — 258,304 — 258,304 Commercial paper — 254,413 — 254,413 Corporate debt securities — 83,615 — 83,615 Debt mutual funds 8,565 — — 8,565 U.S. government agency securities — 4,339 — 4,339 Certificates of deposit and time deposits — 979 — 979 Non-U.S. government securities — 625 — 625 Equity securities: Mutual funds 29,420 — — 29,420 Total $ 828,919 $ 725,462 $ — $ 1,554,381 Derivative assets — 95 — 95 Total $ 828,919 $ 725,557 $ — $ 1,554,476 Liabilities Contingent consideration $ — $ — $ 7,227 $ 7,227 Derivative liabilities — 504 — 504 Total $ — $ 504 $ 7,227 $ 7,731 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 790,934 $ 123,187 $ — $ 914,121 Marketable securities — 522,280 — 522,280 Long-term marketable securities 37,985 79,995 — 117,980 Prepayments and other current assets — 95 — 95 Total $ 828,919 $ 725,557 $ — $ 1,554,476 Liabilities Other current liabilities $ — $ 504 $ — $ 504 Long-term contingent consideration — — 7,227 7,227 Total $ — $ 504 $ 7,227 $ 7,731 December 31, 2019 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 311,975 $ — $ — $ 311,975 Cash equivalents 410,285 51,664 — 461,949 Available for sale securities: Corporate debt securities — 97,307 — 97,307 Commercial paper — 54,149 — 54,149 U.S. Treasury securities — 42,382 — 42,382 U.S. government agency securities — 9,952 — 9,952 Debt mutual funds 6,888 — — 6,888 Certificates of deposit and time deposits — 4,751 — 4,751 Non-U.S. government securities — 592 — 592 Equity securities: Mutual funds 25,772 — — 25,772 Total $ 754,920 $ 260,797 $ — $ 1,015,717 Derivative assets — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Contingent consideration $ — $ — $ 39,705 $ 39,705 Derivative liabilities — 203 — 203 Total $ — $ 203 $ 39,705 $ 39,908 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 722,260 $ 51,664 $ — $ 773,924 Marketable securities — 137,303 — 137,303 Long-term marketable securities 32,660 71,830 — 104,490 Prepayments and other current assets — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Other current liabilities $ — $ 203 $ — $ 203 Contingent consideration — — 9,106 9,106 Long-term contingent consideration — — 30,599 30,599 Total $ — $ 203 $ 39,705 $ 39,908 |
Schedule of Changes in Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration for the years ended December 31, 2020 and 2019 were as follows: Contingent Consideration (in thousands) Balance at December 31, 2018 $ 70,543 Acquisition of AutoGuide 23,976 Foreign currency impact (967 ) Payments (1) (34,590 ) Fair value adjustment (2) (19,257 ) Balance at December 31, 2019 39,705 Foreign currency impact (355 ) Payments (3) (8,852 ) Fair value adjustment (4) (23,271 ) Balance at December 31, 2020 $ 7,227 (1) During the year ended December 31, 2019, Teradyne paid $30.8 million and $3.8 million of contingent consideration for the earn-outs in connection with the acquisitions of MiR and Universal Robots A/S (“Universal Robots”), respectively. (2) During the year ended December 31, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was decreased by $22.2 million primarily due to a decrease in forecasted revenues partially offset by the impact from modification of the earn-out structure. During the year ended December 31, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of AutoGuide was increased by $3.0 million primarily due to an increase in forecasted revenues (3) During the year ended December 31, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out in connection with the acquisition of MiR. (4) During the year ended December 31, 2020, the fair value of contingent consideration for the earn-out in connection with the acquisition of AutoGuide was decreased by $19.7 million primarily due to a decrease in forecasted revenues and earnings before interest and taxes |
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument | The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instrument: Liability December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent consideration (AutoGuide) $ 7,227 Monte Carlo simulation Revenue Volatility 16.5% Discount Rate 1.0% |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2020 and 2019 were as follows: December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 914,121 $ 914,121 $ 773,924 $ 773,924 Marketable securities 640,260 640,260 241,793 241,793 Derivative assets 95 95 528 528 Liabilities Contingent consideration 7,227 7,227 39,705 39,705 Derivative liabilities 504 504 203 203 Convertible debt (1) 410,111 1,739,553 394,687 1,010,275 (1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features. |
Schedule of Available-for-Sale Marketable Securities | The following tables summarize the composition of available-for-sale marketable securities at December 31, 2020 and 2019: December 31, 2020 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 257,132 $ 1,330 $ (158 ) $ 258,304 $ 17,243 Commercial paper 254,404 10 (1 ) 254,413 12,173 Corporate debt securities 76,129 7,539 (53 ) 83,615 39,896 Debt mutual funds 8,413 152 — 8,565 — U.S. government agency securities 4,294 46 (1 ) 4,339 1,106 Certificates of deposit and time deposits 979 — — 979 — Non-U.S. government securities 625 — — 625 — $ 601,976 $ 9,077 $ (213 ) $ 610,840 $ 70,418 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 522,228 $ 92 $ (40 ) $ 522,280 $ 61,806 Long-term marketable securities 79,748 8,985 (173 ) 88,560 8,612 $ 601,976 $ 9,077 $ (213 ) $ 610,840 $ 70,418 December 31, 2019 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Corporate debt securities $ 93,267 $ 4,081 $ (41 ) $ 97,307 $ 2,009 Commercial paper 54,124 26 (1 ) 54,149 1,391 U.S. Treasury securities 42,167 431 (216 ) 42,382 17,556 U.S. government agency securities 9,942 14 (4 ) 9,952 3,043 Debt mutual funds 6,753 135 — 6,888 — Certificates of deposit and time deposits 4,751 — — 4,751 — Non-U.S. government securities 592 — — 592 — $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 137,144 $ 160 $ (1 ) $ 137,303 $ 2,922 Long-term marketable securities 74,452 4,527 (261 ) 78,718 21,077 $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 |
Contractual Maturities of Investments Held | The contractual maturities of investments in available-for-sale marketable securities held at December 31, 2020 were as follows: Cost Fair Value (in Due within one year $ 522,228 $ 522,280 Due after 1 year through 5 years 24,829 25,245 Due after 5 years through 10 years 13,030 14,183 Due after 10 years 33,476 40,567 Total $ 593,563 $ 602,275 |
Schedule of Notional Amount of Derivatives | At December 31, 2020 and 2019, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts: December 31, 2020 December 31, 2019 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (14.1 ) $ — $ (14.1 ) $ (29.3 ) $ — $ (29.3 ) Taiwan Dollar (27.9 ) — (27.9 ) (18.4 ) — (18.4 ) Korean Won (5.3 ) — (5.3 ) (10.7 ) — (10.7 ) British Pound Sterling (1.0 ) — (1.0 ) (3.8 ) — (3.8 ) Singapore Dollar — 52.3 52.3 — 25.3 25.3 Euro — 43.9 43.9 — 47.8 47.8 Philippine Peso — 5.0 5.0 — 5.2 5.2 Chinese Yuan — 3.4 3.4 — 4.4 4.4 Total $ (48.3 ) $ 104.6 $ 56.3 $ (62.2 ) $ 82.7 $ 20.5 |
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of December 31, 2020 and 2019: Balance Sheet Location December 31, 2020 December 31, 2019 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 95 $ 528 Foreign exchange contracts Other current liabilities (504 ) (203 ) Total derivatives $ (409 ) $ 325 |
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | The following table summarizes the effect of derivative instruments in the statements of operations recognized for the years ended December 31, 2020, 2019, and 2018. Location of (Gains) Losses Recognized in Statement of Operations December 31, 2020 December 31, 2019 December 31, 2018 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 3,515 $ 5,960 $ 7,386 (1) The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. (2) For the years ended December 31, 2020, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.6 million. (3) For the year ended December 31, 2019 and 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.6 million and $2.5 million, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental cash flow information related to leases | Supplemental cash flows information related to leases was as follows: For the Year Ended Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows: $ 24,136 Right-of-use assets obtained in exchange for new lease obligations 14,801 |
Schedule of operating lease, maturity | Maturities of lease liabilities as of December 31, 2020 were as follows: Operating Lease (in thousands) 2021 $ 22,451 2022 16,798 2023 9,727 2024 7,215 2025 5,715 Thereafter 6,149 Total lease payments 68,055 Less imputed interest (5,409 ) Total lease liabilities $ 62,646 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Components of Convertible Senior Notes | The below tables represent the key components of Teradyne’s convertible senior notes: December 31, December 31, (in thousands) Debt principal $ 459,971 $ 460,000 Unamortized discount 49,860 65,313 Net carrying amount of convertible debt $ 410,111 $ 394,687 Reported as follows: December 31, December 31, (in thousands) Current debt $ 33,343 $ — Long-term debt 376,768 394,687 Net carrying amount of convertible debt $ 410,111 $ 394,687 For the year ended December 31, December 31, (in thousands) Contractual interest expense on the coupon $ 5,750 $ 5,750 Amortization of the discount component and debt issue fees recognized as interest expense 15,454 14,706 Total interest expense on the convertible debt $ 21,204 $ 20,456 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Changes in Accumulated Other Comprehensive (Loss) Income | Changes in accumulated other comprehensive (loss) income, which is presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized (Losses) Gains on Marketable Securities Retirement Plans Service Credit Total (in thousands) Balance at December 31, 2018, net of tax of $0, $(521), $(1,081) $ (12,523 ) $ (1,845 ) $ 1,328 $ (13,040 ) Other comprehensive (loss) income before (10,991 ) 6,015 — (4,976 ) Amounts reclassified from accumulated other — (690 ) (148 ) (838 ) Net current period other comprehensive (loss) income, (10,991 ) 5,325 (148 ) (5,814 ) Balance at December 31, 2019, net of tax of $0, $946, $(1,124) $ (23,514 ) $ 3,480 $ 1,180 $ (18,854 ) Other comprehensive income before 48,903 5,839 — 54,742 Amounts reclassified from accumulated other — (2,365 ) (7 ) (2,372 ) Net current period other comprehensive income (loss), 48,903 3,474 (7 ) 52,370 Balance at December 31, 2020, net of tax of $0, $1,910, $(1,126) $ 25,389 $ 6,954 $ 1,173 $ 33,516 |
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations | Reclassifications out of accumulated other comprehensive income to the statements of operations for the years ended December 31, 2020, 2019, and 2018, were as follows: Details about Accumulated Other Comprehensive Income Components For the year ended Affected Line Item in the Statements of Operations December 31, 2020 December 31, 2019 December 31, 2018 (in thousands) Available-for-sale marketable securities Unrealized gains (losses), net of tax of $665, $192, $21 $ 2,365 $ 690 $ (1,337 ) Interest income Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $2, $43, $71 7 148 245 (a) Total reclassifications, net of tax of $667, $235, $92 $ 2,372 $ 838 $ (1,092 ) Net income (a) The amortization of prior service credit is included in the computation of net periodic pension cost and postretirement benefit; see Note P: “Retirement Plans.” |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2020 and 2019 are as follows: Industrial Automation Wireless Test Semiconductor Test System Test Total (in thousands) Balance at December 31, 2018: Goodwill $ 363,358 $ 361,819 $ 260,540 $ 158,699 $ 1,144,416 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 363,358 7,976 — 10,516 381,850 Lemsys acquisition — — 1,428 — 1,428 AutoGuide acquisition 41,372 — — — 41,372 Foreign currency translation adjustment (8,247 ) — 28 — (8,219 ) Balance at December 31, 2019: Goodwill 396,483 361,819 261,996 158,699 1,178,997 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 396,483 7,976 1,456 10,516 416,431 AutoGuide acquisition (149 ) — — — (149 ) Foreign currency translation adjustment 37,418 — 159 — 37,577 Balance at December 31, 2020: Goodwill 433,752 361,819 262,155 158,699 1,216,425 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) $ 433,752 $ 7,976 $ 1,615 $ 10,516 $ 453,859 Intangible Assets |
Schedule of Estimated Intangible Assets Amortization Expense | Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2021 $ 21,893 2022 21,000 2023 20,504 2024 20,192 2025 11,922 Thereafter 5,428 |
Wireless Test | |
Schedule of Amortizable Intangible Assets | Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2020 Gross Carrying Amount Accumulated Amortization (1) Foreign Net Carrying Amount (in thousands) Developed technology $ 272,547 $ (210,479 ) $ (1,610 ) $ 60,458 Customer relationships 66,239 (54,524 ) 305 12,020 Tradenames and trademarks 70,120 (42,344 ) 685 28,461 Total intangible assets $ 408,906 $ (307,347 ) $ (620 ) $ 100,939 December 31, 2019 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Developed technology $ 361,787 $ (279,000 ) $ (5,709 ) $ 77,078 Customer relationships 75,669 (59,077 ) (455 ) 16,137 Tradenames and trademarks 70,120 (36,671 ) (1,184 ) 32,265 Backlog 260 (260 ) — — Total intangible assets $ 507,836 $ (375,008 ) $ (7,348 ) $ 125,480 (1) In 2020, $98.9 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 2018 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 784,147 $ 467,468 $ 451,779 Weighted average common shares-basic 166,120 170,425 187,672 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 8,528 4,909 2,749 Convertible note hedge warrant shares (2) 6,989 2,698 485 Restricted stock units 1,264 1,236 1,385 Stock options 131 178 278 Employee stock purchase rights 10 13 36 Dilutive potential common shares 16,922 9,034 4,933 Weighted average common shares-diluted 183,042 179,459 192,605 Net income per common share-basic $ 4.72 $ 2.74 $ 2.41 Net income per common share-diluted $ 4.28 $ 2.60 $ 2.35 (1) Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.56, multiplied by 14.6 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. (2) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.60, multiplied by 14.6 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations | The December 31 balances of these defined benefit pension plans assets and obligations are shown below: 2020 2019 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 203,791 $ 43,952 $ 178,237 $ 39,146 Service cost 1,773 907 1,608 751 Interest cost 5,770 516 7,189 691 Actuarial loss 24,671 2,951 24,447 4,520 Benefits paid (9,844 ) (1,299 ) (7,690 ) (836 ) Retiree annuity purchase (24,379 ) — — — Liability loss due to settlement 451 — — — Non-U.S. currency movement — 3,961 — (320 ) End of year 202,233 50,988 203,791 43,952 Change in plan assets: Fair value of plan assets: Beginning of year 166,932 1,586 144,301 1,400 Actual return on plan assets 23,048 67 27,516 64 Company contributions 3,098 1,079 2,805 923 Benefits paid (9,844 ) (988 ) (7,690 ) (836 ) Retiree annuity purchase (24,379 ) — — — Non-U.S. currency movement — 112 — 35 End of year 158,855 1,856 166,932 1,586 Funded status $ (43,378 ) $ (49,132 ) $ (36,859 ) $ (42,366 ) |
Amounts Recorded within Statement of Financial Position | The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2020 2019 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 17,468 $ — $ 18,457 $ — Accrued employees’ compensation and withholdings (3,273 ) (1,019 ) (2,826 ) (922 ) Retirement plans liabilities (57,573 ) (48,113 ) (52,490 ) (41,444 ) Funded status $ (43,378 ) $ (49,132 ) $ (36,859 ) $ (42,366 ) |
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2020 2019 United States Foreign United States Foreign (in thousands) Deferred taxes related to prior service cost recognized in other comprehensive income $ 560 $ — $ 560 $ — |
Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets as of Decemb e 2020 2019 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 60.8 $ 51.0 $ 55.3 $ 44.0 Accumulated benefit obligation 58.5 46.5 53.2 39.9 Fair value of plan assets — 1.9 — 1.6 |
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2020, 2019, and 2018, Teradyne’s net periodic pension cost (income) was comprised of the following: 2020 2019 2018 United States Foreign United States Foreign United States Foreign (in thousands) Components of Net Periodic Pension Cost (Income): Service cost $ 1,773 $ 907 $ 1,608 $ 751 $ 2,196 $ 786 Interest cost 5,770 516 7,189 691 8,940 687 Expected return on plan assets (4,840 ) (65 ) (6,042 ) (29 ) (9,049 ) (19 ) Amortization of prior service cost — — — — 58 — Net actuarial loss (gain) 6,463 2,949 2,973 4,485 (4,429 ) 743 Settlement loss 451 — — — 345 — Total net periodic pension cost (income) $ 9,617 $ 4,307 $ 5,728 $ 5,898 $ (1,939 ) $ 2,197 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service cost — — — — (58 ) — Total recognized in other comprehensive income — — — — (58 ) — Total recognized in net periodic pension cost (income) and other comprehensive income $ 9,617 $ 4,307 $ 5,728 $ 5,898 $ (1,997 ) $ 2,197 |
Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation | Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2020 2019 2018 United States Foreign United States Foreign United States Foreign Discount rate 2.8 % 1.1 % 4.1 % 1.8 % 3.4 % 1.8 % Expected return on plan assets 3.0 3.8 4.3 2.0 4.3 1.5 Salary progression rate 2.6 2.5 2.3 2.5 2.3 2.7 Weighted Average Assumptions to Determine Pension Obligations at December 31: 2020 2019 United States Foreign United States Foreign Discount rate 2.2 % 0.7 % 3.0 % 1.1 % Salary progression rate 2.4 2.3 2.6 2.5 |
Weighted Average Pension Asset Allocations by Category | The following table provides weighted average pension asset allocation by asset category at December 31, 2020 and 2019: 2020 2019 United States Foreign United States Foreign Fixed income securities 94.0 % — % 94.0 % — % Equity securities 5.0 — 5.0 — Other 1.0 100.0 1.0 100.0 100.0 % 100.0 % 100.0 % 100.0 % |
Target Asset Allocation and Index for Each Asset Category | The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows: Asset Category: Policy Index: Target Allocation U.S. corporate fixed income Bloomberg Barclays U.S. Corporate A or Better Index 75 % Global equity MSCI World Minimum Volatility Index 5 U.S. government fixed income Bloomberg Barclays U.S. Long Government Bond Index 14 High yield fixed income Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index 5 Cash Citigroup Three Month U.S. Treasury Bill Index 1 |
Changes in Fair Value of Pension Assets | The fair value of pension plan assets by asset category and by level at December 31, 2020 and December 31, 2019 were as follows: December 31, 2020 United States Foreign Level 1 Level 2 Level Total Level Level 2 Level Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 127,098 $ — $ 127,098 $ — $ — $ — $ — U.S. government securities — 22,250 — 22,250 — — — — Global equity — 7,925 — 7,925 — — — — Other — — — — — 1,856 — 1,856 Cash and cash equivalents 1,582 — — 1,582 — — — — Total $ 1,582 $ 157,273 $ — $ 158,855 $ — $ 1,856 $ — $ 1,856 December 31, 2019 United States Foreign Level 1 Level 2 Level Total Level Level 2 Level Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 133,792 $ — $ 133,792 $ — $ — $ — $ — U.S. government securities — 23,186 — 23,186 — — — — Global equity — 8,344 — 8,344 — — — — Other — — — — — 1,586 — 1,586 Cash and cash equivalents 1,610 — — 1,610 — — — — Total $ 1,610 $ 165,322 $ — $ 166,932 $ — $ 1,586 $ — $ 1,586 |
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: United States Foreign (in thousands) 2021 $ 8,902 $ 1,058 2022 8,782 1,063 2023 9,189 1,313 2024 9,815 1,192 2025 10,374 1,140 2026-2030 54,145 7,053 |
Postretirement Benefit Plans | |
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations | The December 31 balances of the postretirement assets and obligations are shown below: 2020 2019 (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 9,003 $ 9,256 Service cost 57 41 Interest cost 240 347 Actuarial loss 421 717 Benefits paid (1,205 ) (1,358 ) End of year 8,515 9,003 Change in plan assets: Fair value of plan assets: Beginning of year — — Company contributions 1,205 1,358 Benefits paid (1,205 ) (1,358 ) End of year — — Funded status $ (8,515 ) $ (9,003 ) |
Amounts Recorded within Statement of Financial Position | The following table provides amounts recorded within the account line items of financial position as of December 31: 2020 2019 (in thousands) Accrued employees’ compensation and withholdings $ (1,161 ) $ (1,231 ) Retirement plans liability (7,354 ) (7,772 ) Funded status $ (8,515 ) $ (9,003 ) |
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2020 2019 (in thousands) Prior service credit, before tax $ (49 ) $ (58 ) Deferred taxes (1,686 ) (1,684 ) Total recognized in other comprehensive income, net of tax $ (1,735 ) $ (1,742 ) |
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2020, 2019, and 2018, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following: 2020 2019 2018 (in thousands) Components of Net Periodic Postretirement Benefit Cost (income): Service cost $ 57 $ 41 $ 39 Interest cost 240 347 196 Amortization of prior service credit (9 ) (191 ) (373 ) Net actuarial loss 421 717 25 Special termination benefits — — 3,708 Total net periodic postretirement benefit cost 709 914 3,595 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service credit 9 191 373 Total recognized in other comprehensive income 9 191 373 Total recognized in net periodic postretirement cost and other comprehensive income $ 718 $ 1,105 $ 3,968 |
Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation | Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1: 2020 2019 2018 Discount rate 3.0 % 4.0 % 3.4 % Initial health care cost trend rate 7.1 7.5 7.9 Ultimate health care cost trend rate 4.5 4.5 4.5 Year in which ultimate health care cost trend rate is reached 2026 2026 2026 2020 2019 2018 Discount rate 2.2 % 3.0 % 4.0 % Initial medical trend 7.3 7.1 7.5 Ultimate health care trend 4.5 4.5 4.5 Medical cost trend rate decrease to ultimate rate in year 2029 2026 2026 |
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: Benefit Payments (in thousands) 2021 $ 1,161 2022 961 2023 786 2024 646 2025 533 2026-2030 1,601 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 2018 Risk-free interest rate 1.5 % 2.6 % 2.2 % Teradyne volatility-historical 34.9 % 31.9 % 26.8 % NYSE Composite Index volatility-historical 11.4 % 11.9 % 12.4 % Dividend yield 0.6 % 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: 2020 2019 2018 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 1.5 % 2.5 % 2.4 % Volatility-historical 32.0 % 30.1 % 26.4 % Dividend yield 0.5 % 1.0 % 0.8 % |
Stock Compensation Plan Activity | Stock compensation plan activity for the years 2020, 2019, and 2018, is as follows: 2020 2019 2018 (in thousands) Restricted Stock Units: Non-vested at January 1 2,269 2,454 3,174 Awarded 616 1,139 790 Vested (1,028 ) (1,237 ) (1,382 ) Forfeited (68 ) (87 ) (128 ) Non-vested at December 31 1,789 2,269 2,454 Stock Options: Outstanding at January 1 319 506 531 Granted 56 102 69 Exercised (159 ) (280 ) (94 ) Forfeited — (7 ) — Expired — (2 ) — Outstanding at December 31 216 319 506 Vested and expected to vest at December 31 216 319 506 Exercisable at December 31 27 85 256 |
Share Based Compensation Total Shares Available | Total shares available for the years 2020, 2019, and 2018: 2020 2019 2018 (in thousands) Shares available: Available for grant at January 1 6,727 7,874 8,605 Options granted (56 ) (102 ) (69 ) Options forfeited — 7 Restricted stock units awarded (616 ) (1,139 ) (790 ) Restricted stock units forfeited 68 87 128 Available for grant at December 31 6,123 6,727 7,874 |
Weighted-Average Restricted Stock Unit Award Date Fair Value | Weighted average restricted stock unit award date fair value information for the years 2020, 2019, and 2018, is as follows: 2020 2019 2018 Non-vested at January 1 $ 35.58 $ 29.22 $ 21.71 Awarded 72.76 39.08 45.99 Vested 31.53 23.59 20.20 Forfeited 45.36 35.60 24.67 Non-vested at December 31 $ 47.84 $ 35.58 $ 29.22 |
Restricted Stock Unit Awards Aggregate Intrinsic Value | Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2020, 2019, and 2018 is as follows: 2020 2019 2018 (in thousands) Vested $ 71,582 $ 46,110 $ 63,688 Outstanding 214,509 154,752 77,015 Expected to vest 210,301 152,374 77,187 |
Restricted Stock Units Weighted Average Remaining Contractual Terms | Restricted stock units weighted average remaining contractual terms (in years) information at December 31 for the years 2020, 2019, and 2018 is as follows: 2020 2019 2018 Outstanding 0.96 1.02 0.92 Expected to vest 0.96 1.02 0.91 |
Weighted Average Stock Options Exercise Price | Weighted average stock options exercise price information for the year ended December 31, 2020 is as follows: 2020 Outstanding at January 1 $ 29.91 Options granted 72.61 Options exercised 23.77 Options forfeited — Options cancelled — Outstanding at December 31 45.59 Exercisable at December 31 23.51 |
Stock Option Aggregate Intrinsic Value Information | Stock option aggregate intrinsic value information for the years ended December 31, 2020, 2019, and 2018 is as follows: 2020 2019 2018 (in thousands) Exercised $ 9,682 $ 9,232 $ 2,960 Outstanding 16,083 12,218 7,359 Vested and expected to vest 13,499 7,701 7,359 Exercisable 2,584 4,517 5,905 |
Stock Options Weighted Average Remaining Contractual Terms | Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2020, 2019, and 2018 is as follows: 2020 2019 2018 Outstanding 4.6 4.2 3.6 Vested and expected to vest 4.9 5.0 3.6 Exercisable 2.5 2.1 2.4 |
Effect to Income (Loss) from Operations for Recording Stock-Based Compensation | The following table provides the effect to income from operations for recording stock-based compensation for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 (in thousands) Cost of revenues $ 4,227 $ 3,480 $ 3,129 Engineering and development 12,039 9,913 9,181 Selling and administrative 28,640 24,504 21,267 Stock-based compensation 44,906 37,897 33,577 Income tax benefit (13,060 ) (8,360 ) (12,036 ) Total stock-based compensation expense after income taxes $ 31,846 $ 29,537 $ 21,541 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Income (Loss) Before Income Taxes and Provision (Benefit) for Income Taxes from Operations | The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows: 2020 2019 2018 (in thousands) Income before income taxes: U.S. $ 312,153 $ 192,442 $ 189,691 Non-U.S. 588,862 333,330 278,110 $ 901,015 $ 525,772 $ 467,801 Provision (benefit) for income taxes: Current: U.S. Federal $ 58,678 $ 19,297 $ (59,122 ) Non-U.S. 75,193 52,810 45,083 State (1,315 ) (4,347 ) 1,721 132,556 67,760 (12,318 ) Deferred: U.S. Federal (12,604 ) (4,522 ) 29,252 Non-U.S. (5,127 ) (8,007 ) (1,243 ) State 2,043 3,073 331 (15,688 ) (9,456 ) 28,340 Total provision for income taxes: $ 116,868 $ 58,304 $ 16,022 |
Reconciliation of Effective Tax Rate | A reconciliation of the effective tax rate for the years 2020, 2019 and 2018 is as follows: 2020 2019 2018 U.S. statutory federal tax rate 21.0 % 21.0 % 21.0 % U.S. global intangible low-taxed income 5.7 6.2 0.3 State income taxes, net of federal tax benefit 0.3 0.5 0.1 Foreign taxes (5.6 ) (4.0 ) (2.0 ) Foreign tax credits (4.8 ) (5.9 ) (2.2 ) U.S. foreign derived intangible income (2.2 ) (2.6 ) (1.8 ) U.S. research and development credit (1.3 ) (1.8 ) (2.2 ) Equity compensation (0.6 ) (0.7 ) (1.2 ) Uncertain tax positions (0.1 ) (4.3 ) 1.0 U.S. transition tax — 1.9 (10.5 ) Impact of rate change on deferred taxes — — 0.3 Other, net 0.6 0.8 0.6 13.0 % 11.1 % 3.4 % |
Deferred Tax Assets (Liabilities) | Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2020 and 2019 were as follows: 2020 2019 (in thousands) Deferred tax assets: Tax credits $ 87,595 $ 79,480 Accruals 33,156 25,424 Pension liabilities 28,348 24,459 Inventory valuations 18,427 18,572 Lease liability 12,627 13,093 Deferred revenue 9,235 7,622 Equity compensation 6,543 7,042 Vacation accrual 5,890 4,768 Investment impairment 3,292 3,292 Net operating loss carryforwards 1,823 2,705 Other 626 187 Gross deferred tax assets 207,562 186,644 Less: valuation allowance (84,962 ) (77,177 ) Total deferred tax assets $ 122,600 $ 109,467 Deferred tax liabilities: Depreciation $ (14,525 ) $ (18,238 ) Intangible assets (12,726 ) (16,705 ) Right of use assets (10,688 ) (11,197 ) Contingent consideration (3,515 ) — Marketable securities (3,344 ) (1,601 ) Other (710 ) (611 ) Total deferred tax liabilities $ (45,508 ) $ (48,352 ) Net deferred assets $ 77,092 $ 61,115 |
Operating Loss Carryforwards | At December 31, 2020, Teradyne had operating loss carryforwards that expire in the following years: State Operating Loss Carryforwards Foreign Operating Loss Carryforwards (in thousands) 2021 $ 333 $ — 2022 2,203 — 2023 3,368 — 2024 812 — 2025 191 — 2026-2030 7,452 — 2031-2035 2,147 68 Beyond 2035 73 — Non-expiring 870 3,923 Total $ 17,449 $ 3,991 |
Unrecognized Tax Benefits | Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 (in thousands) Beginning balance as of January 1 $ 21,180 $ 43,395 $ 36,263 Additions: Tax positions for current year 1,082 1,322 4,716 Tax positions for prior years 66 8,043 2,626 Reductions: Tax positions for prior years (2,989 ) (31,397 ) (153 ) Expiration of statutes (1,436 ) (183 ) (57 ) Ending balance as of December 31 $ 17,903 $ 21,180 $ 43,395 |
Operating Segment, Geographic_2
Operating Segment, Geographic and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | Segment information for the years ended December 31, 2020, 2019, and 2018 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Other Consolidated (in thousands) 2020 Revenues $ 2,259,597 $ 409,729 $ 279,731 $ 173,016 $ (604 ) $ 3,121,469 Income (loss) before taxes (1)(2) 739,695 152,092 (24,019 ) 41,950 (8,703 ) 901,015 Total assets (3) 1,070,378 138,295 712,936 106,273 1,624,464 3,652,346 Property additions 168,055 3,092 8,899 4,931 — 184,977 Depreciation and amortization expense 64,998 3,426 36,242 6,258 15,819 126,743 2019 Revenues $ 1,552,571 $ 287,455 $ 298,139 $ 157,315 $ (515 ) $ 2,294,965 Income (loss) before taxes (1)(2) 416,973 93,543 (5,916 ) 35,585 (14,413 ) 525,772 Total assets (3) 784,808 131,428 671,559 97,299 1,101,920 2,787,014 Property additions 112,145 3,059 9,076 10,362 — 134,642 Depreciation and amortization expense 59,197 5,518 40,904 5,365 9,671 120,655 2018 Revenues $ 1,492,417 $ 216,132 $ 261,452 $ 132,006 $ (1,205 ) $ 2,100,802 Income (loss) before taxes (1)(2) 397,645 48,857 7,670 29,052 (15,423 ) 467,801 Total assets (3) 669,452 88,098 607,502 77,570 1,263,984 2,706,606 Property additions 94,496 3,469 11,188 5,226 — 114,379 Depreciation and amortization expense 58,095 6,430 36,755 5,328 6,616 113,224 (1) Included in Corporate and Other are: contingent consideration adjustments, investment impairment, pension and postretirement plans actuarial gains (losses), severance charges, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. (3) Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
Schedule of Segment Reporting Information by Segment Charges | Included in each segment are charges and credits in the following line items in the statements of operations: For the Year Ended December 31, 2020 2019 2018 (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 11,013 $ 8,731 $ 6,822 Contract termination settlement fee 4,000 — — Restructuring and other—employee severance — 1,277 8,429 System Test: Cost of revenues—inventory charge $ 887 $ 2,000 $ 1,175 Industrial Automation: Restructuring and other—acquisition related expenses and compensation $ 985 $ 741 $ 1,163 Cost of revenues—inventory charge 834 508 680 Restructuring and other—employee severance 1,584 796 — Wireless: Cost of revenues—inventory charge $ 4,800 $ 4,005 $ 2,565 Corporate and Other: Restructuring and other—AutoGuide contingent consideration adjustment $ (19,724 ) $ 2,976 $ — Restructuring and other—MiR contingent consideration adjustment (3,546 ) (22,199 ) 17,666 Restructuring and other—acquisition related expenses and compensation 1,728 1,765 3,422 Other (income) expense, net—investment impairment charge — 15,000 — Selling and administrative—equity modification charge 766 2,108 — Restructuring and other—Universal Robots contingent consideration adjustment — — (16,679 ) |
Revenues by Country | Information as to Teradyne’s revenues by country is as follows: 2020 2019 2018 (in thousands) Revenues from customers (1): Taiwan $ 1,178,068 $ 485,681 $ 516,322 China 465,722 514,327 348,942 Korea 391,571 239,504 163,224 United States 321,674 333,059 282,869 Europe 205,587 219,015 223,207 Japan 143,983 175,322 158,281 Thailand 138,787 87,503 59,184 Singapore 76,460 84,111 108,618 Philippines 68,887 54,560 77,996 Malaysia 56,096 58,200 122,797 Rest of the World 74,634 43,683 39,362 $ 3,121,469 $ 2,294,965 $ 2,100,802 (1) Revenues attributable to a country are based on location of customer site. |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area: United States Foreign(1) Total (in thousands) December 31, 2020 $ 291,234 $ 158,135 $ 449,369 December 31, 2019 $ 252,812 $ 124,943 $ 377,755 (1) As of December 31, 2020 and 2019, long-lived assets attributable to Singapore were $62.5 million and $35.2 million, respectively. |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated Quarterly Statements of Operations | The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein. 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2)(5) (3)(5) (4)(5) (in thousands, except per share amounts) Revenues: Products $ 610,906 $ 734,630 $ 697,745 $ 647,625 Services 93,449 104,031 121,739 111,343 Total revenues 704,355 838,661 819,484 758,968 Cost of revenues: Cost of products 259,996 322,732 300,174 274,574 Cost of services 38,809 44,456 60,382 34,605 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 298,805 367,188 360,556 309,179 Gross profit 405,550 471,473 458,928 449,789 Operating expenses: Selling and administrative 111,388 113,259 115,840 124,279 Engineering and development 85,159 94,102 94,909 100,795 Acquired intangible assets amortization 9,891 8,941 6,219 5,752 Restructuring and other (7,606 ) 37,222 (27,701 ) (15,117 ) Total operating expenses 198,832 253,524 189,267 215,709 Income from operations 206,718 217,949 269,661 234,080 Non-operating (income) expense: Interest income (2,751 ) (1,368 ) (1,071 ) (793 ) Interest expense 5,551 6,043 6,237 6,351 Other (income) expense, net 6,849 (4,017 ) 764 5,597 Income before income taxes 197,069 217,291 263,731 222,925 Income tax provision 20,878 28,383 41,013 26,595 Net income $ 176,191 $ 188,908 $ 222,718 $ 196,330 Net income per common share—basic $ 1.06 $ 1.14 $ 1.34 $ 1.18 Net income per common share—diluted $ 0.97 $ 1.05 $ 1.21 $ 1.05 Cash dividend declared per common share $ 0.10 $ 0.10 $ 0.10 $ 0.10 (1) Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. (2) Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. (3) Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. (4) Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. (5) Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2) (3) (4)(5)(6) (in thousands, except per share amounts) Revenues: Products $ 393,442 $ 457,511 $ 488,170 $ 548,552 Services 100,657 106,667 93,868 106,098 Total revenues 494,099 564,178 582,038 654,650 Cost of revenues: Cost of products 165,368 193,299 197,196 226,184 Cost of services 41,096 46,961 39,804 45,228 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 206,464 240,260 237,000 271,412 Gross profit 287,635 323,918 345,038 383,238 Operating expenses: Selling and administrative 102,013 108,811 109,166 117,092 Engineering and development 76,791 81,434 77,804 86,794 Acquired intangible assets amortization 10,634 10,083 9,647 9,784 Restructuring and other 5,112 (10,404 ) (6,500 ) (2,088 ) Total operating expenses 194,550 189,924 190,117 211,582 Income from operations 93,085 133,994 154,921 171,656 Non-operating (income) expense: Interest income (4,989 ) (4,384 ) (4,433 ) (3,185 ) Interest expense 5,520 5,800 5,463 5,441 Other (income) expense, net (1,425 ) 1,401 2,158 20,514 Income before income taxes 93,979 131,177 151,733 148,886 Income tax provision (benefit) (15,159 ) 33,780 15,873 23,811 Net income $ 109,138 $ 97,397 $ 135,860 $ 125,075 Net income per common share—basic $ 0.63 $ 0.57 $ 0.80 $ 0.75 Net income per common share—diluted $ 0.62 $ 0.55 $ 0.75 $ 0.69 Cash dividend declared per common share $ 0.09 $ 0.09 $ 0.09 $ 0.09 (1) Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. (2) Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. (3) Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. (4) Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. (5) Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. (6) Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. |
The Company - Additional inform
The Company - Additional information (Detail) | Nov. 13, 2019USD ($) | Apr. 25, 2018USD ($) | Feb. 26, 2018USD ($) | Jan. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Feb. 28, 2020USD ($) | Jun. 03, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||||
Contingent consideration | $ 24,000,000 | $ 30,800,000 | $ 8,900,000 | $ 8,900,000 | ||||||
Investment impairment | 15,000,000 | 15,000,000 | ||||||||
Industrial Automation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total preliminary purchase price | 81,600,000 | |||||||||
Real War In [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity Method Investments | 0 | 0 | $ 15,000,000 | |||||||
Repaymentof debt demanded | $ 25,000,000 | |||||||||
Mobile Industrial Robots (MiR) | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid to acquire outstanding common and preferred stock | 145,200,000 | |||||||||
Total preliminary purchase price | 197,800,000 | |||||||||
Contingent consideration | $ 52,600,000 | 9,100,000 | 9,100,000 | $ 31,000,000 | ||||||
Arrangement range of outcomes value high | $ 0 | $ 0 | ||||||||
Energid Technologies Corporation [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total preliminary purchase price | $ 27,600,000 | |||||||||
Lemsys [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total preliminary purchase price | $ 9,100,000 | |||||||||
Autoguide LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Arrangement range of outcomes value high | 100,200,000 | $ 100,200,000 | ||||||||
Autoguide LLC | Industrial Automation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid to acquire outstanding common and preferred stock | 57,600,000 | |||||||||
Contingent consideration | $ 24,000,000 | |||||||||
Business acquisition percentage of equity | 100.00% | |||||||||
Arrangement range of outcomes value high | $ 100,200,000 | $ 100,200,000 | ||||||||
Quantity of material to be transported | 4,500 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Increase (decrease) in adoption of new accounting guidance amount | $ 387,414 | $ (241,918) | ||
Standard warranty period | 12 months | |||
Depreciation over life to cost of revenues and selling and administrative expenses, years | 6 years | |||
Net book value of internally manufactured test systems sold | $ 7,300 | 5,000 | $ 3,800 | |
Advertising costs | 12,800 | 16,600 | 15,400 | |
Losses (gains) on foreign currency transactions | (2,600) | 1,600 | $ 2,500 | |
Trade Accounts Receivable | $ 131,100 | $ 143,600 | ||
Retained Earnings | ASU 2016-01 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Increase (decrease) in adoption of new accounting guidance amount | $ 3,100 | |||
Accumulated Other Comprehensive Income (Loss) | ASU 2016-01 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Increase (decrease) in adoption of new accounting guidance amount | $ 3,100 |
Deferred Revenue and Customer A
Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Revenue Arrangement | ||||
Maintenance, service and training | $ 77,654 | $ 63,815 | ||
Customer advances, undelivered elements and other | 63,438 | 56,358 | ||
Extended warranty | 51,929 | 30,677 | $ 27,422 | $ 24,438 |
Total deferred revenue and customer advances | $ 193,021 | $ 150,850 |
Warranty Accrual Included in Ot
Warranty Accrual Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Warranty Liability [Line Items] | |||
Balance at beginning of period | $ 8,996 | $ 7,909 | $ 8,200 |
Acquisition | 14 | 41 | |
Accruals for warranties issued during the period | 28,490 | 14,106 | 13,045 |
Accruals related to pre-existing warranties | 821 | 4,026 | 921 |
Settlements made during the period | (21,674) | (17,059) | (14,298) |
Balance at end of period | $ 16,633 | $ 8,996 | $ 7,909 |
Extended Product Warranty of Sh
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Product Warranty Liability [Line Items] | |||
Balance at beginning of period | $ 30,677 | $ 27,422 | $ 24,438 |
Deferral of new extended warranty revenue | 41,694 | 23,271 | 23,753 |
Recognition of extended warranty deferred revenue | (20,442) | (20,016) | (20,769) |
Balance at end of period | $ 51,929 | $ 30,677 | $ 27,422 |
Schedule of Prepayments and Oth
Schedule of Prepayments and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer and supplier prepayments | $ 212,286 | $ 143,392 |
Prepaid taxes | 9,361 | 8,046 |
Prepaid maintenance and other services | 13,116 | 8,503 |
Other prepayments | 15,329 | 16,753 |
Total prepayments | $ 250,092 | $ 176,694 |
Useful Lives of Assets (Detail)
Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 40 years |
Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 10 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful lives, description | Lesser of lease term or 10 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 10 years |
Test Systems Manufactured Internally | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 6 years |
Machinery Equipment And Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 3 years |
Machinery Equipment And Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Acquisitions and Investment i_3
Acquisitions and Investment in Other Company - Additional Information (Detail) | Nov. 13, 2019USD ($) | Jan. 30, 2019USD ($) | Apr. 25, 2018USD ($) | Feb. 26, 2018USD ($) | Jan. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2020USD ($) | Jun. 03, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration | $ 24,000,000 | $ 30,800,000 | $ 8,900,000 | $ 8,900,000 | $ 8,900,000 | |||||||
Goodwill | 416,431,000 | 416,431,000 | $ 453,859,000 | 416,431,000 | $ 381,850,000 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 2 months 12 days | |||||||||||
Investment impairment | 15,000,000 | 15,000,000 | ||||||||||
Industrial Automation [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total preliminary purchase price | 81,600,000 | |||||||||||
Goodwill | 396,483,000 | 396,483,000 | $ 433,752,000 | 396,483,000 | 363,358,000 | |||||||
Estimate of Fair Value Measurement [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration | 39,705,000 | 39,705,000 | 7,227,000 | 39,705,000 | ||||||||
Real War In [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Equity Method Investments | 0 | 0 | 0 | $ 15,000,000 | ||||||||
Repaymentof debt demanded | $ 25,000,000 | |||||||||||
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 | 9,100,000 | 9,100,000 | 9,100,000 | 31,000,000 | |||||||
Arrangement range of outcomes value high | 0 | 0 | ||||||||||
Goodwill, not deductible for tax purposes | 136,000,000 | |||||||||||
Net income | 464,602,000 | 442,082,000 | ||||||||||
Total preliminary purchase price | 197,800,000 | |||||||||||
Goodwill | $ 135,976,000 | |||||||||||
Mobile Industrial Robots (MiR) | Fair Value Adjustment to Inventory | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenues | 400,000 | |||||||||||
Mobile Industrial Robots (MiR) | Acquisition Related Costs | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net income | 2,900,000 | |||||||||||
Energid Technologies Corporation | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total preliminary purchase price | $ 27,600,000 | |||||||||||
Goodwill | 14,400,000 | |||||||||||
Acquired value of intangible assets | $ 12,300,000 | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 months 21 days | |||||||||||
Net tangible assets | $ 1,000,000 | |||||||||||
Lemsys [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total preliminary purchase price | $ 1,400,000 | $ 1,400,000 | ||||||||||
Total preliminary purchase price | 9,100,000 | |||||||||||
Acquired value of intangible assets | $ 4,600,000 | 4,600,000 | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 2 months 12 days | |||||||||||
Net tangible assets | $ 3,100,000 | $ 3,100,000 | ||||||||||
Autoguide LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total preliminary purchase price | 81,599,000 | |||||||||||
Arrangement range of outcomes value high | 100,200,000 | 100,200,000 | ||||||||||
Goodwill, not deductible for tax purposes | 41,200,000 | |||||||||||
Revenues | 1,400,000 | |||||||||||
Income (loss) before income taxes | (900,000) | |||||||||||
Goodwill | $ 41,223,000 | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 1 month 6 days | |||||||||||
Autoguide LLC [Member] | Industrial Automation [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total preliminary purchase price | 81,600,000 | |||||||||||
Cash paid to acquire outstanding common and preferred stock | 57,600,000 | |||||||||||
Contingent consideration | $ 24,000,000 | |||||||||||
Arrangement range of outcomes value high | $ 100,200,000 | $ 100,200,000 | 100,200,000 | |||||||||
Quantity of material to be transported | 4,500 | |||||||||||
Business acquisition percentage of equity | 100.00% | |||||||||||
Autoguide LLC [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenues | 100,000 | 100,000 | ||||||||||
Autoguide LLC [Member] | Acquisition Related Costs | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net income | $ 1,200,000 | $ 1,200,000 |
Final Allocation of Purchase Pr
Final Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 25, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 453,859 | $ 416,431 | $ 381,850 | |
Autoguide LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 41,223 | |||
Intangible assets | 37,660 | |||
Other current assets | 3,661 | |||
Non-current assets | 1,227 | |||
Accounts payable and current liabilities | (1,223) | |||
Other long-term liabilities | (949) | |||
Total purchase price | $ 81,599 | |||
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) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 80,670 |
Total intangible assets, estimated useful life, years | 7 years 2 months 12 days |
Autoguide LLC [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 37,660 |
Total intangible assets, estimated useful life, years | 6 years 1 month 6 days |
Developed technology | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 58,900 |
Total intangible assets, estimated useful life, years | 7 years |
Developed technology | Autoguide LLC [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 24,590 |
Total intangible assets, estimated useful life, years | 6 years |
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 Relationships | Autoguide LLC [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 7,360 |
Total intangible assets, estimated useful life, years | 6 years |
Trademarks and tradenames | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 13,240 |
Total intangible assets, estimated useful life, years | 11 years |
Trademarks and tradenames | Autoguide LLC [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 5,450 |
Total intangible assets, estimated useful life, years | 7 years |
Customer backlog | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 30 |
Total intangible assets, estimated useful life, years | 2 months 12 days |
Customer backlog | Autoguide LLC [Member] | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 260 |
Total intangible assets, estimated useful life, years | 3 months 18 days |
Pro Forma Results Under Acquisi
Pro Forma Results Under Acquisition (Detail) - Mobile Industrial Robots (MiR) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 2,303,737 | $ 2,111,373 |
Net income | $ 464,602 | $ 442,082 |
Net income per common share, basic | $ 2.73 | $ 2.36 |
Net income per common share, diluted | $ 2.59 | $ 2.30 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Revenue And Customer Advances | $ 91 | $ 65.6 | $ 69.9 |
Revenue, Remaining Performance Obligation, Amount | $ 929.6 | ||
Short-term Contract with Customer [Member] | |||
Revenue, Remaining Performance Obligation, Percentage | 92.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 12 months | ||
Long-term Contract with Customer [Member] | |||
Revenue, Remaining Performance Obligation, Percentage | 8.00% | ||
Long-term Contract with Customer [Member] | Maximum [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 3 years | ||
Long-term Contract with Customer [Member] | Minimum [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 1 year |
Disaggregated Revenue by Primar
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||
Total | [1],[2] | $ 3,121,469 | $ 2,294,965 | $ 2,100,802 |
Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,259,597 | 1,552,571 | 1,492,417 | |
System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 409,729 | 287,455 | 216,132 |
Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 279,731 | 298,139 | 261,452 | |
Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 173,016 | 157,315 | 132,006 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | (604) | (515) | (1,205) |
Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 2,804,166 | 1,993,077 | 1,815,171 |
Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 348,454 | 237,686 | 167,418 |
Point in Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 163,834 | 148,322 | 122,536 |
Point in Time | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | (604) | (515) | (1,205) |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 317,302 | 301,888 | 285,631 |
Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 61,275 | 49,769 | 48,714 |
Over Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 9,182 | 8,993 | 9,470 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 335,441 | 338,384 | 288,379 |
Americas | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 128,482 | 129,840 | 96,763 |
Americas | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 22,544 | 24,234 | 19,166 |
Americas | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | (604) | (515) | (1,205) |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 208,196 | 228,071 | 235,977 |
Europe, Middle East and Africa | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 22,726 | 24,789 | 28,380 |
Europe, Middle East and Africa | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 6,503 | 6,532 | 4,968 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 2,577,831 | 1,728,510 | 1,576,446 |
Asia Pacific | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 258,521 | 132,826 | 90,989 |
Asia Pacific | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 143,969 | 126,549 | 107,872 |
SOC | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 1,877,389 | 1,286,440 | 1,218,949 |
SOC | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 1,659,414 | 1,070,375 | 1,010,493 |
SOC | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 217,975 | 216,065 | 208,456 |
SOC | Americas | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 77,671 | 73,257 | 78,498 |
SOC | Europe, Middle East and Africa | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 55,125 | 60,302 | 72,572 |
SOC | Asia Pacific | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 1,744,593 | 1,152,881 | 1,067,879 |
Memory | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 382,208 | 266,131 | 273,468 |
Memory | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 363,324 | 247,221 | 259,366 |
Memory | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 18,884 | 18,910 | 14,102 |
Memory | Americas | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 12,999 | 23,826 | 17,353 |
Memory | Europe, Middle East and Africa | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 5,209 | 3,591 | 10,851 |
Memory | Asia Pacific | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 364,000 | 238,714 | 245,264 |
Universal Robots (UR) | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 221,481 | 252,358 | 237,337 |
Universal Robots (UR) | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 214,212 | 244,515 | 232,448 |
Universal Robots (UR) | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 7,269 | 7,843 | 4,889 |
Universal Robots (UR) | Americas | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 64,164 | 71,926 | 70,478 |
Universal Robots (UR) | Europe, Middle East and Africa | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 97,040 | 112,405 | 108,367 |
Universal Robots (UR) | Asia Pacific | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 60,277 | 68,027 | 58,492 |
MiR | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 44,833 | 44,403 | 24,115 |
MiR | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 44,622 | 44,329 | 24,115 |
MiR | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 211 | 74 | |
MiR | Americas | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 16,769 | 14,438 | 7,326 |
MiR | Europe, Middle East and Africa | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 21,593 | 20,452 | 10,839 |
MiR | Asia Pacific | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 6,471 | 9,513 | $ 5,950 |
Autoguide LLC [Member] | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 13,417 | 1,378 | |
Autoguide LLC [Member] | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 10,911 | 1,144 | |
Autoguide LLC [Member] | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | 2,506 | 234 | |
Autoguide LLC [Member] | Americas | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | $ 13,417 | $ 1,378 | |
[1] | Includes $10.0 million, $8.4 million and $12.0 million in 2020, 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” | |||
[2] | Revenues attributable to a country are based on location of customer site. |
Disaggregated Revenue by Prim_2
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Revenue on leases | $ 10 | $ 8.4 | $ 12 |
Composition of Inventories, Net
Composition of Inventories, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 114,133 | $ 118,595 |
Work-in-process | 25,408 | 32,695 |
Finished goods | 82,648 | 45,401 |
Inventories, net | $ 222,189 | $ 196,691 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Inventory reserves | $ 110.6 | $ 103.6 |
Property Plant and Equipment, N
Property Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 17,207 | $ 16,561 |
Buildings | 108,221 | 107,282 |
Machinery, equipment and software | 956,035 | 834,970 |
Furniture and fixtures | 28,487 | 29,157 |
Leasehold improvements | 61,276 | 59,378 |
Construction in progress | 13,098 | 2,537 |
Property, Plant and Equipment, Gross, Total | 1,184,324 | 1,049,885 |
Less: accumulated depreciation | 789,524 | 729,669 |
Property, plant and equipment, net | $ 394,800 | $ 320,216 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation of property, plant and equipment | $ 80,119 | $ 70,834 | $ 67,415 |
Machinery and equipment | 956,035 | 834,970 | |
Accumulated depreciation | 789,524 | 729,669 | |
Test Systems Leased By Customers | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment | 23,400 | 5,400 | |
Accumulated depreciation | $ 7,500 | $ 5,100 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 13, 2019 | |
Financial Instruments and Fair Value [Line Items] | ||||
Available-for-sale securities, realized gain | $ 4,600,000 | $ 1,300,000 | $ 4,000,000 | |
Available-for-sale securities, realized loss | 300,000 | 200,000 | 1,600,000 | |
Aggregate loss of investments with unrealized losses less than one year | 70,400,000 | 23,600,000 | ||
Unrealized Gain (loss) on contracts | (2,600,000) | 1,600,000 | $ 2,500,000 | |
Equity securities unrealized gain | 9,600,000 | 5,300,000 | ||
Equity securities unrealized loss | $ 6,000,000 | $ 400,000 | ||
Accounts Receivable | Customer 1 | Minimum | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Concentration risk, percentage | 25.00% | |||
Accounts Receivable | Customer 2 | Minimum | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
Debt Mutual Funds | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Available for sale securities with out contractual maturity date | $ 8,600,000 | |||
Autoguide LLC [Member] | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Maximum amount of contingent consideration paid for acquisition | 100,200,000 | $ 100,200,000 | ||
Foreign Exchange Contracts | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Unrealized Gain (loss) on contracts | $ 400,000 | $ 300,000 |
Schedule of Fair Value of Finan
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 13, 2019 | Apr. 25, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | $ 610,840 | $ 216,021 | ||
Contingent consideration | 8,900 | $ 24,000 | $ 30,800 | |
U.S. Treasury Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 258,304 | 42,382 | ||
Commercial Paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 254,413 | 54,149 | ||
Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 83,615 | 97,307 | ||
Certificates of Deposit and Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 979 | 4,751 | ||
U.S. Government Agency Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 4,339 | 9,952 | ||
Debt Mutual Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 8,565 | 6,888 | ||
Non-U.S. Government Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 625 | 592 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Total | 1,554,381 | 1,015,717 | ||
Derivative assets | 95 | 528 | ||
Total | 1,554,476 | 1,016,245 | ||
Contingent consideration | 7,227 | 39,705 | ||
Derivative liabilities | 504 | 203 | ||
Total | 7,731 | 39,908 | ||
Fair Value, Measurements, Recurring | Cash | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Cash and cash equivalents | 443,166 | 311,975 | ||
Fair Value, Measurements, Recurring | Cash Equivalents | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Cash and cash equivalents | 470,955 | 461,949 | ||
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 258,304 | 42,382 | ||
Fair Value, Measurements, Recurring | Commercial Paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 254,413 | 54,149 | ||
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 83,615 | 97,307 | ||
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 | 979 | 4,751 | ||
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 4,339 | 9,952 | ||
Fair Value, Measurements, Recurring | Debt Mutual Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 8,565 | 6,888 | ||
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 625 | 592 | ||
Fair Value, Measurements, Recurring | Equity Mutual Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale equity securities | 29,420 | 25,772 | ||
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 | 828,919 | 754,920 | ||
Total | 828,919 | 754,920 | ||
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 | 443,166 | 311,975 | ||
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 | 347,768 | 410,285 | ||
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 | 8,565 | 6,888 | ||
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 | 29,420 | 25,772 | ||
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Total | 725,462 | 260,797 | ||
Derivative assets | 95 | 528 | ||
Total | 725,557 | 261,325 | ||
Derivative liabilities | 504 | 203 | ||
Total | 504 | 203 | ||
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 | 123,187 | 51,664 | ||
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 | 258,304 | 42,382 | ||
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 | 254,413 | 54,149 | ||
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 | 83,615 | 97,307 | ||
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 | 979 | 4,751 | ||
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 4,339 | 9,952 | ||
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 | 625 | 592 | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Contingent consideration | 7,227 | 39,705 | ||
Total | $ 7,227 | $ 39,705 |
Schedule of Reported Financial
Schedule of Reported Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 1,554,476 | $ 1,016,245 |
Liabilities | 7,731 | 39,908 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 504 | 203 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 914,121 | 773,924 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 522,280 | 137,303 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 117,980 | 104,490 |
Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 95 | 528 |
Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 9,106 | |
Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 7,227 | 30,599 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 828,919 | 754,920 |
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 | 790,934 | 722,260 |
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 | 37,985 | 32,660 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 725,557 | 261,325 |
Liabilities | 504 | 203 |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 504 | 203 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 123,187 | 51,664 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 522,280 | 137,303 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 79,995 | 71,830 |
Significant Other Observable Inputs (Level 2) | Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 95 | 528 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 7,227 | 39,705 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 9,106 | |
Significant Unobservable Inputs (Level 3) | Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | $ 7,227 | $ 30,599 |
Schedule of Changes in Fair Val
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | $ 39,705 | $ 70,543 | ||
Acquisition of AutoGuide | 23,976 | |||
Foreign currency impact | (355) | (967) | ||
Payments | (8,852) | [1] | (34,590) | [2] |
Fair value adjustment | (23,271) | [3] | (19,257) | [4] |
Balance at end of period | $ 7,227 | $ 39,705 | ||
[1] | During the year ended December 31, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out in connection with the acquisition of MiR. | |||
[2] | During the year ended December 31, 2019, Teradyne paid $30.8 million and $3.8 million of contingent consideration for the earn-outs in connection with the acquisitions of MiR and Universal Robots A/S (“Universal Robots”), respectively. | |||
[3] | During the year ended December 31, 2020, the fair value of contingent consideration for the earn-out in connection with the acquisition of AutoGuide was decreased by $19.7 million primarily due to a decrease in forecasted revenues. Teradyne has received a letter from the sellers of AutoGuide alleging non-compliance with the earn-out provisions of the AutoGuide acquisition agreement. Teradyne disputes the allegation of non-compliance. The ultimate amount of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide may be affected by the outcome of the dispute. During the year ended December 31, 2020, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was decreased by $3.5 million primarily due to a decrease in forecasted revenues. | |||
[4] | During the year ended December 31, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was decreased by $22.2 million primarily due to a decrease in forecasted revenues partially offset by the impact from modification of the earn-out structure. During the year ended December 31, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of AutoGuide was increased by $3.0 million primarily due to an increase in forecasted revenues |
Schedule of Changes in Fair V_2
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Payments of contingent consideration | $ 8,852 | $ 27,615 | $ 13,571 | ||||||||
Increase (decrease) in contingent consideration | (23,271) | (19,257) | $ 987 | ||||||||
Universal Robots (UR) | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Payments of contingent consideration | 30,800 | ||||||||||
Increase (decrease) in contingent consideration | $ 27,200 | $ 29,900 | $ 10,000 | $ 7,800 | $ 11,700 | $ 3,000 | 3,800 | ||||
Avionics Interface Technologies, LLC | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Payments of contingent consideration | 8,900 | ||||||||||
MiR | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Increase (decrease) in contingent consideration | 3,500 | 22,200 | |||||||||
Autoguide LLC [Member] | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Increase (decrease) in contingent consideration | $ 15,300 | $ 600 | $ 3,000 | $ 3,000 | |||||||
Autoguide LLC [Member] | Dispute In Respect Of Contingent Consideration [Member] | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Increase (decrease) in contingent consideration | $ 19,700 |
Quantitative Information Associ
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 13, 2019 | Dec. 31, 2018 | Apr. 25, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration | $ 8,900 | $ 24,000 | $ 30,800 | ||
Mobile Industrial Robots (MiR) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration | $ 9,100 | $ 31,000 | $ 52,600 | ||
Monte Carlo Simulation | Revenue for the period July 1, 2015-December 31, 2018 | Mobile Industrial Robots (MiR) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Target achievement, volatility | 16.50% | ||||
Discount rate | 1.00% | ||||
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 | $ 7,227 |
Schedule of Carrying Amounts an
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 13, 2019 | Apr. 25, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||
Marketable securities | $ 610,840 | $ 216,021 | |||
Contingent consideration | 8,900 | $ 24,000 | $ 30,800 | ||
Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||
Cash and cash equivalents | 914,121 | 773,924 | |||
Marketable securities | 640,260 | 241,793 | |||
Derivative assets | 95 | 528 | |||
Contingent consideration | 7,227 | 39,705 | |||
Derivative liabilities | 504 | 203 | |||
Convertible debt | [1] | 410,111 | 394,687 | ||
Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||
Cash and cash equivalents | 914,121 | 773,924 | |||
Marketable securities | 640,260 | 241,793 | |||
Derivative assets | 95 | 528 | |||
Contingent consideration | 7,227 | 39,705 | |||
Derivative liabilities | 504 | 203 | |||
Convertible debt | [1] | $ 1,739,553 | $ 1,010,275 | ||
[1] | The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features. |
Schedule of Available for Sale
Schedule of Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 601,976 | $ 211,596 |
Available-for-sale marketable securities, Unrealized Gain | 9,077 | 4,687 |
Available-for-sale marketable securities, Unrealized (Loss) | (213) | (262) |
Available-for-sale marketable securities, Fair Market Value | 610,840 | 216,021 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 70,418 | 23,999 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 257,132 | 42,167 |
Available-for-sale marketable securities, Unrealized Gain | 1,330 | 431 |
Available-for-sale marketable securities, Unrealized (Loss) | (158) | (216) |
Available-for-sale marketable securities, Fair Market Value | 258,304 | 42,382 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 17,243 | 17,556 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 254,404 | 54,124 |
Available-for-sale marketable securities, Unrealized Gain | 10 | 26 |
Available-for-sale marketable securities, Unrealized (Loss) | (1) | (1) |
Available-for-sale marketable securities, Fair Market Value | 254,413 | 54,149 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 12,173 | 1,391 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 76,129 | 93,267 |
Available-for-sale marketable securities, Unrealized Gain | 7,539 | 4,081 |
Available-for-sale marketable securities, Unrealized (Loss) | (53) | (41) |
Available-for-sale marketable securities, Fair Market Value | 83,615 | 97,307 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 39,896 | 2,009 |
Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 8,413 | 6,753 |
Available-for-sale marketable securities, Unrealized Gain | 152 | 135 |
Available-for-sale marketable securities, Fair Market Value | 8,565 | 6,888 |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 4,294 | 9,942 |
Available-for-sale marketable securities, Unrealized Gain | 46 | 14 |
Available-for-sale marketable securities, Unrealized (Loss) | (1) | (4) |
Available-for-sale marketable securities, Fair Market Value | 4,339 | 9,952 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 1,106 | 3,043 |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 979 | 4,751 |
Available-for-sale marketable securities, Fair Market Value | 979 | 4,751 |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 625 | 592 |
Available-for-sale marketable securities, Fair Market Value | $ 625 | $ 592 |
Schedule of Reported Available
Schedule of Reported Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 601,976 | $ 211,596 |
Available-for-sale marketable securities, Unrealized Gain | 9,077 | 4,687 |
Available-for-sale marketable securities, Unrealized (Loss) | (213) | (262) |
Available-for-sale marketable securities, Fair Market Value | 610,840 | 216,021 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 70,418 | 23,999 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 522,228 | 137,144 |
Available-for-sale marketable securities, Unrealized Gain | 92 | 160 |
Available-for-sale marketable securities, Unrealized (Loss) | (40) | (1) |
Available-for-sale marketable securities, Fair Market Value | 522,280 | 137,303 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 61,806 | 2,922 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 79,748 | 74,452 |
Available-for-sale marketable securities, Unrealized Gain | 8,985 | 4,527 |
Available-for-sale marketable securities, Unrealized (Loss) | (173) | (261) |
Available-for-sale marketable securities, Fair Market Value | 88,560 | 78,718 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 8,612 | $ 21,077 |
Contractual Maturities of Inves
Contractual Maturities of Investments in Debt Securities Held (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $ 522,228 |
Due after 1 year through 5 years, cost | 24,829 |
Due after 5 years through 10 years, cost | 13,030 |
Due after 10 years, cost | 33,476 |
Total, cost | 593,563 |
Due within one year, fair market value | 522,280 |
Due after 1 year through 5 years, fair market value | 25,245 |
Due after 5 years through 10 years, fair market value | 14,183 |
Due after 10 years, fair maket value | 40,567 |
Total, fair market value | $ 602,275 |
Schedule of Notional Amount of
Schedule of Notional Amount of Derivatives (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 56.3 | $ 20.5 |
Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (48.3) | (62.2) |
Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 104.6 | 82.7 |
Japanese Yen | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (14.1) | (29.3) |
Japanese Yen | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (14.1) | (29.3) |
Taiwan Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (27.9) | (18.4) |
Taiwan Dollar | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (27.9) | (18.4) |
Korean Won | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (5.3) | (10.7) |
Korean Won | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (5.3) | (10.7) |
British Pound Sterling | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (1) | (3.8) |
British Pound Sterling | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (1) | (3.8) |
Euro | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 43.9 | 47.8 |
Euro | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 43.9 | 47.8 |
Singapore Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 52.3 | 25.3 |
Singapore Dollar | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 52.3 | 25.3 |
Philippines, Pesos | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 5 | 5.2 |
Philippines, Pesos | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 5 | 5.2 |
China, Yuan Renminbi | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 3.4 | 4.4 |
China, Yuan Renminbi | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 3.4 | $ 4.4 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets (liabilities), net | $ (409) | $ 325 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 95 | 528 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (504) | $ (203) |
Schedule of Effect of Derivativ
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other (income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Losses on derivatives recognized in statements of operations | $ 3,515 | $ 5,960 | $ 7,386 |
Schedule of Effect of Derivat_2
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on foreign currency transactions | $ (2.6) | $ 1.6 | $ 2.5 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Total lease expense | $ 38.5 | $ 35.6 |
Variable lease costs | 12.1 | 11.1 |
Short-term leases | $ 3.4 | $ 2.6 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 2 months 12 days | 4 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 4.80% | 5.00% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows | $ 24,136 |
Right-of-use assets obtained in exchange for new lease obligations | $ 14,801 |
Schedule of Operating Lease, Ma
Schedule of Operating Lease, Maturity (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
2021 | $ 22,451 |
2022 | 16,798 |
2023 | 9,727 |
2024 | 7,215 |
2025 | 5,715 |
Thereafter | 6,149 |
Total lease payments | 68,055 |
Less imputed interest | (5,409) |
Total lease liabilities | $ 62,646 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Feb. 22, 2021USD ($)Holders | May 01, 2020USD ($) | Dec. 12, 2016USD ($)Customershares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Apr. 27, 2015USD ($) |
Debt Instrument | ||||||||
Repurchase of common stock | $ 88,465,000 | $ 500,000,000 | $ 823,478,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | |||||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 150,000,000 | |||||||
Line of Credit Facility, Interest Rate Description | The interest rate applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.50% to 1.25% per annum or LIBOR, a minimum of 0.75%, plus a margin ranging from 1.50% to 2.25% per annum, based on the consolidated leverage ratio of Teradyne. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.25% to 0.40% per annum, based on the then applicable consolidated leverage ratio. | |||||||
Term of revolving credit facility | 3 years | |||||||
Convertible common shares | $ 3,787,000 | |||||||
Convertible Common Shares [Member] | ||||||||
Debt Instrument | ||||||||
Convertible common shares | 37,000,000 | |||||||
Collateral Pledged [Member] | ||||||||
Debt Instrument | ||||||||
Line of Credit Facility, Interest Rate Description | 65 | |||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | ||||||||
Debt Instrument | ||||||||
Aggregate principal amount | $ 460,000,000 | 459,971,000 | $ 460,000,000 | |||||
Debt instrument, interest rate, stated percentage | 1.25% | |||||||
Debt instrument, net proceeds after issuance costs | $ 450,800,000 | |||||||
Payment for net cost of convertible note hedges net of warrant proceeds | 33,000,000 | $ 33,000,000 | ||||||
Repurchase of common stock | $ 50,100,000 | |||||||
Repurchase of stock, shares | shares | 2,000,000 | |||||||
Senior notes maturity date | Dec. 15, 2023 | |||||||
Debt instrument, frequency of periodic payment | payable semiannually in arrears on June 15 and December 15 of each year | |||||||
Debt instrument, conversion option expiration date | Sep. 15, 2023 | |||||||
Debt instrument conversion price | $ / shares | $ 31.56 | |||||||
Shares that would be issued upon conversion | shares | 14,600,000 | |||||||
Strike price per share of warrant | $ / shares | $ 39.60 | |||||||
Debt instrument, convertible, carrying amount of equity component | $ 100,800,000 | |||||||
Debt instrument, effective annual interest rate | 5.00% | |||||||
Financing cost | $ 3,300,000 | $ 7,200,000 | ||||||
Debt issuance costs, amortization period | 7 years | |||||||
Unamortized discount | $ 49,900,000 | |||||||
Debt Instrument, convertible, remaining discount amortization period | 3 years | |||||||
Value of notes converted | $ 1,747,500,000 | |||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Subsequent Event | ||||||||
Debt Instrument | ||||||||
Number of holders excerised the conversion option | Holders | 24 | |||||||
Debt instrument conversion converted instrument amount | $ 51,000,000 | |||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option one | ||||||||
Debt Instrument | ||||||||
Trading days measurement period | Customer | 20 | |||||||
Consecutive trading days measurement period | Customer | 30 | |||||||
Percentage of conversion price | 130.00% | |||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option two | ||||||||
Debt Instrument | ||||||||
Aggregate principal amount | $ 1,000,000 | |||||||
Trading days measurement period | Customer | 5 | |||||||
Consecutive trading days measurement period | Customer | 5 | |||||||
Percentage of closing sale price of common stock and conversion rate product | 98.00% | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Term of loan, years | 5 years | |||||||
Credit facility, borrowing capacity | $ 350,000,000 | |||||||
Revolving Credit Facility | Maximum | Truist Bank [Member] | ||||||||
Debt Instrument | ||||||||
Commitment fee percentage of unused portion of credit facility | 0.40% | |||||||
Revolving Credit Facility | Minimum | Truist Bank [Member] | ||||||||
Debt Instrument | ||||||||
Commitment fee percentage of unused portion of credit facility | 0.25% | |||||||
Revolving Credit Facility | Base Rate | Maximum | Truist Bank [Member] | ||||||||
Debt Instrument | ||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||
Revolving Credit Facility | Base Rate | Minimum | Truist Bank [Member] | ||||||||
Debt Instrument | ||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Truist Bank [Member] | ||||||||
Debt Instrument | ||||||||
Debt Instrument Base Rate Percentage | 0.75% | |||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | Truist Bank [Member] | ||||||||
Debt Instrument | ||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | Truist Bank [Member] | ||||||||
Debt Instrument | ||||||||
Debt instrument, basis spread on variable rate | 1.50% |
Components of Convertible Senio
Components of Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 12, 2016 |
Debt Instrument | |||
Current debt | $ 33,343 | ||
Long-term debt | 376,768 | $ 394,687 | |
Net carrying amount of convertible debt | 410,111 | 394,687 | |
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||
Debt Instrument | |||
Debt principal | 459,971 | 460,000 | $ 460,000 |
Unamortized discount | 49,860 | 65,313 | |
Net carrying amount of convertible debt | $ 410,111 | $ 394,687 |
Interest Expense on Convertible
Interest Expense on Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument | ||
Contractual interest expense on the coupon | $ 5,750 | $ 5,750 |
Amortization of the discount component and debt issue fees recognized as interest expense | 15,454 | 14,706 |
Total interest expense on the convertible debt | $ 21,204 | $ 20,456 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 1,480,158 | $ 1,522,354 | $ 1,953,646 |
Other comprehensive income (loss) | 52,370 | (5,814) | (29,460) |
Balance | 2,207,018 | 1,480,158 | 1,522,354 |
Foreign Currency Translation Reclassification Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (23,514) | (12,523) | |
Other comprehensive loss before reclassifications, net of tax | 48,903 | (10,991) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss) | 48,903 | (10,991) | |
Balance | 25,389 | (23,514) | (12,523) |
Unrealized Gains (Losses) on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 3,480 | (1,845) | |
Other comprehensive loss before reclassifications, net of tax | 5,839 | 6,015 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (2,365) | (690) | |
Other comprehensive income (loss) | 3,474 | 5,325 | |
Balance | 6,954 | 3,480 | (1,845) |
Amortization of Prior Service Credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 1,180 | 1,328 | |
Other comprehensive loss before reclassifications, net of tax | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (7) | (148) | (245) |
Other comprehensive income (loss) | (7) | (148) | |
Balance | 1,173 | 1,180 | 1,328 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (18,854) | (13,040) | 18,776 |
Other comprehensive loss before reclassifications, net of tax | 54,742 | (4,976) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (2,372) | (838) | 1,092 |
Other comprehensive income (loss) | 52,370 | (5,814) | (29,460) |
Balance | $ 33,516 | $ (18,854) | $ (13,040) |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive (Loss) Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (667) | $ (235) | $ (92) |
Foreign currency translation adjustments, tax | 0 | 0 | 0 |
Unrealized (losses) gains on marketable securities, tax | 1,910 | 946 | (521) |
Retirement plans prior service benefit, tax | (1,126) | (1,124) | (1,081) |
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 | |
Unrealized (Losses) Gains on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, tax | 1,629 | 1,659 | |
Amounts reclassified from accumulated other comprehensive income (loss), tax | (665) | (192) | (21) |
Other comprehensive income (loss), tax | 964 | 1,467 | |
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 | (2) | (43) | $ (71) |
Other comprehensive income (loss), tax | $ (2) | $ (43) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income (expense) | $ 2,365 | $ 690 | $ (1,337) |
Amortization of Prior Service Credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, net of tax | 7 | 148 | 245 |
Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, net of tax | $ 2,372 | $ 838 | $ (1,092) |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | $ 667 | $ 235 | $ 92 |
Unrealized (Losses) Gains on Marketable Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | 665 | 192 | 21 |
Amortization of Prior Service Credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | $ 2 | $ 43 | $ 71 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | [1],[2] | Sep. 27, 2020 | [2],[3] | Jun. 28, 2020 | [2],[4] | Mar. 29, 2020 | [5] | Dec. 31, 2019 | Sep. 30, 2019 | [9] | Jun. 30, 2019 | [10] | Mar. 31, 2019 | [11] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||||||||||||||
Acquired intangible assets amortization | $ 5,752 | $ 6,219 | $ 8,941 | $ 9,891 | $ 9,784 | [6],[7],[8] | $ 9,647 | $ 10,083 | $ 10,634 | $ 30,803 | $ 40,147 | $ 39,191 | |||||||
MiR Reporting Unit Percentage | 14.00% | 14.00% | |||||||||||||||||
MiR Goodwill Amount | $ 123,600 | $ 123,600 | |||||||||||||||||
[1] | Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[4] | Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. | ||||||||||||||||||
[5] | Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. | ||||||||||||||||||
[6] | Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. | ||||||||||||||||||
[7] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[9] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[10] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[11] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill acquisition | $ 1,428 | ||
Foreign currency translation adjustment | $ 37,577 | (8,219) | |
Goodwill | 1,216,425 | 1,178,997 | $ 1,144,416 |
Accumulated impairment losses | (762,566) | (762,566) | (762,566) |
Goodwill | 453,859 | 416,431 | 381,850 |
Autoguide LLC | |||
Goodwill [Line Items] | |||
Goodwill acquisition | (149) | 41,372 | |
Goodwill | 41,223 | ||
Industrial Automation | |||
Goodwill [Line Items] | |||
Foreign currency translation adjustment | 37,418 | (8,247) | |
Goodwill | 433,752 | 396,483 | 363,358 |
Goodwill | 433,752 | 396,483 | 363,358 |
Industrial Automation | Autoguide LLC | |||
Goodwill [Line Items] | |||
Goodwill acquisition | (149) | 41,372 | |
Wireless Test | |||
Goodwill [Line Items] | |||
Goodwill | 361,819 | 361,819 | 361,819 |
Accumulated impairment losses | (353,843) | (353,843) | (353,843) |
Goodwill | 7,976 | 7,976 | 7,976 |
Semiconductor Test | |||
Goodwill [Line Items] | |||
Goodwill acquisition | 1,428 | ||
Foreign currency translation adjustment | 159 | 28 | |
Goodwill | 262,155 | 261,996 | 260,540 |
Accumulated impairment losses | (260,540) | (260,540) | (260,540) |
Goodwill | 1,615 | 1,456 | |
System Test | |||
Goodwill [Line Items] | |||
Goodwill | 158,699 | 158,699 | 158,699 |
Accumulated impairment losses | (148,183) | (148,183) | (148,183) |
Goodwill | $ 10,516 | $ 10,516 | $ 10,516 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 408,906 | $ 507,836 |
Accumulated Amortization | (307,347) | (375,008) |
Foreign Currency Translation Adjustment | (620) | (7,348) |
Net Carrying Amount | 100,939 | 125,480 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 272,547 | 361,787 |
Accumulated Amortization | (210,479) | (279,000) |
Foreign Currency Translation Adjustment | (1,610) | (5,709) |
Net Carrying Amount | 60,458 | 77,078 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 66,239 | 75,669 |
Accumulated Amortization | (54,524) | (59,077) |
Foreign Currency Translation Adjustment | 305 | (455) |
Net Carrying Amount | 12,020 | 16,137 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 70,120 | 70,120 |
Accumulated Amortization | (42,344) | (36,671) |
Foreign Currency Translation Adjustment | 685 | (1,184) |
Net Carrying Amount | $ 28,461 | 32,265 |
Backlog | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 260 | |
Accumulated Amortization | $ (260) |
Schedule of Amortizable Intan_2
Schedule of Amortizable Intangible Assets (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Finite-Lived Intangible Assets | |
Impairment of intangible assets | $ 98.9 |
Schedule of Estimated Intangibl
Schedule of Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets | |
2021 | $ 21,893 |
2022 | 21,000 |
2023 | 20,504 |
2024 | 20,192 |
2025 | 11,922 |
Thereafter | $ 5,428 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Purchase Commitment, Excluding Long-term Commitment | ||
Aggregate purchase commitments | $ 603.5 | |
Purchase commitments less than one year | $ 592.1 | |
Warranty period | 1 year | |
Product warranty accrual | $ 16.6 | $ 9 |
Revenue deferrals related to extended warranties | $ 51.9 | $ 30.7 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | [1],[2] | Sep. 27, 2020 | [2],[3] | Jun. 28, 2020 | [2],[4] | Mar. 29, 2020 | [5] | Dec. 31, 2019 | [6],[7],[8] | Sep. 30, 2019 | [9] | Jun. 30, 2019 | [10] | Mar. 31, 2019 | [11] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income Loss Per Common Share | |||||||||||||||||||
Net income for basic and diluted net income per share | $ 196,330 | $ 222,718 | $ 188,908 | $ 176,191 | $ 125,075 | $ 135,860 | $ 97,397 | $ 109,138 | $ 784,147 | $ 467,468 | $ 451,779 | ||||||||
Weighted average common shares-basic | 166,120 | 170,425 | 187,672 | ||||||||||||||||
Incremental shares from assumed conversion of convertible notes | 8,528 | 4,909 | 2,749 | ||||||||||||||||
Convertible note hedge warrant shares | 6,989 | 2,698 | 485 | ||||||||||||||||
Employee stock purchase rights | 10 | 13 | 36 | ||||||||||||||||
Dilutive potential common shares | 16,922 | 9,034 | 4,933 | ||||||||||||||||
Weighted average common shares-diluted | 183,042 | 179,459 | 192,605 | ||||||||||||||||
Net income per common share-basic | $ 1.18 | $ 1.34 | $ 1.14 | $ 1.06 | $ 0.75 | $ 0.80 | $ 0.57 | $ 0.63 | $ 4.72 | $ 2.74 | $ 2.41 | ||||||||
Net income per common share-diluted | $ 1.05 | $ 1.21 | $ 1.05 | $ 0.97 | $ 0.69 | $ 0.75 | $ 0.55 | $ 0.62 | $ 4.28 | $ 2.60 | $ 2.35 | ||||||||
Restricted Stock Units | |||||||||||||||||||
Net Income Loss Per Common Share | |||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 1,264 | 1,236 | 1,385 | ||||||||||||||||
Stock Options | |||||||||||||||||||
Net Income Loss Per Common Share | |||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 131 | 178 | 278 | ||||||||||||||||
[1] | Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[4] | Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. | ||||||||||||||||||
[5] | Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. | ||||||||||||||||||
[6] | Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. | ||||||||||||||||||
[7] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[9] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[10] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[11] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Net Income Per Common Share (Parenthetical) (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Convertible Notes | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 31.56 |
Shares that would be issued upon conversion | shares | 14.6 |
Convertible Notes Hedge Warrant | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 39.60 |
Shares that would be issued upon conversion | shares | 14.6 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Employee Stock Option [Member] | ||
Net Income Loss Per Common Share | ||
Exercise of stock options | 0.1 | |
Restricted Stock Units (RSUs) [Member] | ||
Net Income Loss Per Common Share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 | 0.5 |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ (23,271) | $ (19,257) | $ 987 | |||||||||
Severance benefit and charges | $ 1,100 | $ 1,100 | $ 700 | $ 500 | $ 800 | $ 800 | $ 800 | |||||
Acquisition related costs | 500 | $ 3,100 | 1,400 | 200 | 500 | 500 | 1,300 | |||||
Semiconductor Test | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | 3,500 | |||||||||||
Severance benefit and charges | $ 500 | 2,300 | ||||||||||
Acquisition related costs | 2,500 | 2,500 | ||||||||||
Contract termination settlement fee | 4,000 | |||||||||||
AutoGuide | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | 3,000 | |||||||||||
Universal Robots (UR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ 27,200 | $ 29,900 | $ 10,000 | $ 7,800 | $ 11,700 | $ 3,000 | 3,800 | |||||
Mobile Industrial Robots (MiR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ 5,800 | |||||||||||
Semiconductor Test, Industrial Automation and Corporate | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Severance benefit and charges | 2,900 | |||||||||||
Restructuring and other | 1,200 | |||||||||||
Semiconductor Test, Industrial Automation and Corporate | Mobile Industrial Robots (MiR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ 22,200 | |||||||||||
TER Corporate And Eliminations | Universal Robots (UR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ 19,700 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)Participant | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure | |||||||
Number of retiree participants | Participant | 115 | ||||||
Defined Benefit Plan, decrease in benefit obligation | $ 4,000 | ||||||
Defined Benefit Plan, decrease in plan assets | 24,400 | ||||||
Actrual loss on benefit obligations | $ (7,700) | $ (2,700) | $ (100) | $ (7,700) | $ 29,000 | ||
Gain (Loss) Due to Settlement | (500) | ||||||
Fair value of pension plans assets totaled | 160,700 | 160,700 | |||||
UNITED STATES | |||||||
Defined Benefit Plan Disclosure | |||||||
Actrual loss on benefit obligations | (24,671) | (24,447) | |||||
Accumulated benefit obligation for defined benefit pension plans | $ 196,700 | $ 198,200 | $ 196,700 | $ 198,200 | |||
Percentage of expected return on plan assets assumption | 3.00% | 4.30% | 4.30% | ||||
Discount rate utilized to determine future pension obligations | 2.20% | 3.00% | 2.20% | 3.00% | |||
Fair value of pension plans assets totaled | $ 158,855 | $ 166,932 | $ 158,855 | $ 166,932 | $ 144,301 | ||
Contribution to defined benefit pension plans | 3,098 | 2,805 | |||||
Foreign Pension Plans, Defined Benefit | |||||||
Defined Benefit Plan Disclosure | |||||||
Actrual loss on benefit obligations | (2,951) | (4,520) | |||||
Accumulated benefit obligation for defined benefit pension plans | $ 46,500 | $ 39,900 | $ 46,500 | $ 39,900 | |||
Percentage of expected return on plan assets assumption | 3.80% | 2.00% | 1.50% | ||||
Discount rate utilized to determine future pension obligations | 0.70% | 1.10% | 0.70% | 1.10% | |||
Fair value of pension plans assets totaled | $ 1,856 | $ 1,586 | $ 1,856 | $ 1,586 | $ 1,400 | ||
Contribution to defined benefit pension plans | 1,079 | 923 | |||||
Postretirement Benefit Plans | |||||||
Defined Benefit Plan Disclosure | |||||||
Defined Benefit Plan, decrease in benefit obligation | 27,600 | ||||||
Actrual loss on benefit obligations | $ (421) | $ (717) | |||||
Discount rate utilized to determine future pension obligations | 2.20% | 3.00% | 2.20% | 3.00% | 4.00% | ||
Fair value of pension plans assets totaled | $ 0 | $ 0 | $ 0 | $ 0 | |||
Contribution to defined benefit pension plans | $ 1,205 | $ 1,358 | |||||
United States Plans | |||||||
Defined Benefit Plan Disclosure | |||||||
Percentage of expected return on plan assets assumption | 3.00% | ||||||
Discount rate utilized to determine future pension obligations | 2.30% | 3.10% | 2.30% | 3.10% | |||
Fair value of pension plans assets totaled | $ 158,900 | $ 158,900 | |||||
U.S. Supplemental Executive Defined Benefit Pension Plan | |||||||
Defined Benefit Plan Disclosure | |||||||
Contribution to defined benefit pension plans | 3,100 | $ 2,800 | |||||
Contribution to defined benefit pension plans in 2018 | 3,300 | 3,300 | |||||
Non-United States Subsidiaries | |||||||
Defined Benefit Plan Disclosure | |||||||
Contribution to defined benefit pension plans | 1,100 | $ 900 | |||||
Contribution to defined benefit pension plans in 2018 | 1,100 | 1,100 | |||||
Taiwan Defined Benefit Pension Plan | |||||||
Defined Benefit Plan Disclosure | |||||||
Fair value of pension plans assets totaled | $ 1,900 | $ 1,900 |
Schedule of Defined Benefit Pen
Schedule of Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | |||||||
Actuarial loss | $ 7,700 | $ 2,700 | $ 100 | $ 7,700 | $ (29,000) | ||
Ending Balance | 160,700 | $ 160,700 | |||||
UNITED STATES | |||||||
Defined Benefit Plan Disclosure | |||||||
Projected benefit obligation, Beginning of year | 203,791 | 178,237 | |||||
Service cost | 1,773 | 1,608 | $ 2,196 | ||||
Interest cost | 5,770 | 7,189 | 8,940 | ||||
Actuarial loss | 24,671 | 24,447 | |||||
Benefits paid | (9,844) | (7,690) | |||||
Retiree annuity purchase | (24,379) | ||||||
Liability loss due to settlement | 451 | ||||||
Non-U.S. currency movement | 0 | ||||||
Projected benefit obligation, End of year | 202,233 | 203,791 | 202,233 | 203,791 | 178,237 | ||
Beginning Balance | 166,932 | 144,301 | |||||
Actual return on plan assets | 23,048 | 27,516 | |||||
Company contributions | 3,098 | 2,805 | |||||
Benefits paid | (9,844) | (7,690) | |||||
Retiree annuity purchase | (24,379) | ||||||
Non-U.S. currency movement | 0 | ||||||
Ending Balance | 158,855 | 166,932 | 158,855 | 166,932 | 144,301 | ||
Funded status | (43,378) | (36,859) | (43,378) | (36,859) | |||
Foreign Pension Plans, Defined Benefit | |||||||
Defined Benefit Plan Disclosure | |||||||
Projected benefit obligation, Beginning of year | 43,952 | 39,146 | |||||
Service cost | 907 | 751 | 786 | ||||
Interest cost | 516 | 691 | 687 | ||||
Actuarial loss | 2,951 | 4,520 | |||||
Benefits paid | (1,299) | (836) | |||||
Retiree annuity purchase | 0 | ||||||
Liability loss due to settlement | 0 | ||||||
Non-U.S. currency movement | 3,961 | (320) | |||||
Projected benefit obligation, End of year | 50,988 | 43,952 | 50,988 | 43,952 | 39,146 | ||
Beginning Balance | 1,586 | 1,400 | |||||
Actual return on plan assets | 67 | 64 | |||||
Company contributions | 1,079 | 923 | |||||
Benefits paid | (988) | (836) | |||||
Retiree annuity purchase | 0 | ||||||
Non-U.S. currency movement | 112 | 35 | |||||
Ending Balance | 1,856 | 1,586 | 1,856 | 1,586 | 1,400 | ||
Funded status | (49,132) | (42,366) | (49,132) | (42,366) | |||
Postretirement Benefit Plans | |||||||
Defined Benefit Plan Disclosure | |||||||
Projected benefit obligation, Beginning of year | 9,003 | 9,256 | |||||
Service cost | 57 | 41 | 39 | ||||
Interest cost | 240 | 347 | 196 | ||||
Actuarial loss | 421 | 717 | |||||
Benefits paid | (1,205) | (1,358) | |||||
Projected benefit obligation, End of year | 8,515 | 9,003 | 8,515 | 9,003 | $ 9,256 | ||
Beginning Balance | 0 | ||||||
Company contributions | 1,205 | 1,358 | |||||
Benefits paid | (1,205) | (1,358) | |||||
Ending Balance | 0 | 0 | 0 | 0 | |||
Funded status | $ (8,515) | $ (9,003) | $ (8,515) | $ (9,003) |
Schedule of Amounts Recorded wi
Schedule of Amounts Recorded within Statements of Financial Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement plans assets | $ 17,468 | $ 18,457 |
UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement plans assets | 17,468 | 18,457 |
Accrued employees' compensation and withholdings | (3,273) | (2,826) |
Retirement plans liabilities | (57,573) | (52,490) |
Funded status | (43,378) | (36,859) |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement plans assets | 0 | |
Accrued employees' compensation and withholdings | (1,019) | (922) |
Retirement plans liabilities | (48,113) | (41,444) |
Funded status | (49,132) | (42,366) |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued employees' compensation and withholdings | (1,161) | (1,231) |
Retirement plans liabilities | (7,354) | (7,772) |
Funded status | $ (8,515) | $ (9,003) |
Schedule of Amounts Recognized
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Deferred taxes related to prior service cost recognized in other comprehensive income | $ 560 | $ 560 |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Deferred taxes related to prior service cost recognized in other comprehensive income | 0 | |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure | ||
Prior service cost, before tax | (49) | (58) |
Deferred taxes | (1,686) | (1,684) |
Deferred taxes related to prior service cost recognized in other comprehensive income | $ (1,735) | $ (1,742) |
Schedule of Pension Plans with
Schedule of Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | $ 60.8 | $ 55.3 |
Accumulated benefit obligation | 58.5 | 53.2 |
Fair value of plan assets | 0 | |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | 51 | 44 |
Accumulated benefit obligation | 46.5 | 39.9 |
Fair value of plan assets | $ 1.9 | $ 1.6 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension and Postretirement (income) Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | |||
Net actuarial loss (gain) | $ 10,284 | $ 8,176 | $ (3,316) |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Service cost | 1,773 | 1,608 | 2,196 |
Interest cost | 5,770 | 7,189 | 8,940 |
Expected return on plan assets | (4,840) | (6,042) | (9,049) |
Amortization of prior service cost | 58 | ||
Net actuarial loss (gain) | 6,463 | 2,973 | (4,429) |
Settlement loss | 451 | 345 | |
Total net periodic pension cost | 9,617 | 5,728 | (1,939) |
Prior service cost | (58) | ||
Total recognized in other comprehensive income | (58) | ||
Total recognized in net periodic pension cost (income) and other comprehensive income | 9,617 | 5,728 | (1,997) |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Service cost | 907 | 751 | 786 |
Interest cost | 516 | 691 | 687 |
Expected return on plan assets | (65) | (29) | (19) |
Net actuarial loss (gain) | 2,949 | 4,485 | 743 |
Settlement loss | 0 | ||
Total net periodic pension cost | 4,307 | 5,898 | 2,197 |
Prior service cost | 0 | ||
Total recognized in other comprehensive income | 0 | ||
Total recognized in net periodic pension cost (income) and other comprehensive income | 4,307 | 5,898 | 2,197 |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Service cost | 57 | 41 | 39 |
Interest cost | 240 | 347 | 196 |
Amortization of prior service cost | (9) | (191) | (373) |
Net actuarial loss (gain) | 421 | 717 | 25 |
Special termination benefits | 0 | 3,708 | |
Total net periodic pension cost | 709 | 914 | 3,595 |
Prior service cost | 9 | 191 | 373 |
Total recognized in other comprehensive income | 9 | 191 | 373 |
Total recognized in net periodic pension cost (income) and other comprehensive income | $ 718 | $ 1,105 | $ 3,968 |
Schedule of Weighted Average -
Schedule of Weighted Average - Assumptions to Determine Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 2.80% | 4.10% | 3.40% |
Expected return on plan assets | 3.00% | 4.30% | 4.30% |
Salary progression rate | 2.60% | 2.30% | 2.30% |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 1.10% | 1.80% | 1.80% |
Expected return on plan assets | 3.80% | 2.00% | 1.50% |
Salary progression rate | 2.50% | 2.50% | 2.70% |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 3.00% | 4.00% | 3.40% |
Initial health care cost trend rate | 7.10% | 7.50% | 7.90% |
Ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% |
Year in which ultimate health care cost trend rate is reached | 2026 | 2026 | 2026 |
Schedule of Weighted Average As
Schedule of Weighted Average Assumptions to Determine Pension Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 2.20% | 3.00% | 4.00% |
Initial medical trend | 7.30% | 7.10% | 7.50% |
Ultimate health care trend | 4.50% | 4.50% | 4.50% |
Medical cost trend rate decrease to ultimate rate in year | 2029 | 2026 | 2026 |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 2.20% | 3.00% | |
Salary progression rate | 2.40% | 2.60% | |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 0.70% | 1.10% | |
Salary progression rate | 2.30% | 2.50% |
Schedule of Weighted Average Pe
Schedule of Weighted Average Pension Assets Allocations by Category (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
UNITED STATES | Fixed income securities | ||
Defined Benefit Plan Disclosure | ||
Total | 94.00% | 94.00% |
UNITED STATES | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total | 5.00% | 5.00% |
UNITED STATES | Other than Securities Investment | ||
Defined Benefit Plan Disclosure | ||
Total | 1.00% | 1.00% |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
Foreign Pension Plans, Defined Benefit | Other than Securities Investment | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
Schedule of Target Assets Alloc
Schedule of Target Assets Allocation (Detail) | Dec. 31, 2020 |
Bloomberg Barclays Corporate or Better Index | U.S. corporate fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 75.00% |
MSCI World Minimum Volatility Index | Global equity Securities | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 5.00% |
Bloomberg Barclays Long Government Bond Index | U.S. government fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 14.00% |
Bloomberg Barclays High Yield Index | High yield fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 5.00% |
Citigroup Three Month Treasury Bill Index | Cash | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 1.00% |
Schedule of Fair Value of Pensi
Schedule of Fair Value of Pensions Plan Assets by Asset Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure | |||
Total | $ 160,700 | ||
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Total | 158,855 | $ 166,932 | $ 144,301 |
UNITED STATES | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,582 | 1,610 | |
UNITED STATES | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 157,273 | 165,322 | |
UNITED STATES | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Corporate Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 127,098 | 133,792 | |
UNITED STATES | Corporate Debt Securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Corporate Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 127,098 | 133,792 | |
UNITED STATES | Corporate Debt Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | US Government Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 22,250 | 23,186 | |
UNITED STATES | US Government Debt Securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | US Government Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 22,250 | 23,186 | |
UNITED STATES | US Government Debt Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Global equity Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 7,925 | 8,344 | |
UNITED STATES | Global equity Securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Global equity Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 7,925 | 8,344 | |
UNITED STATES | Global equity Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Other | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Other | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure | |||
Total | 1,582 | 1,610 | |
UNITED STATES | Cash and Cash Equivalents | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,582 | 1,610 | |
UNITED STATES | Cash and Cash Equivalents | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
UNITED STATES | Cash and Cash Equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Total | 1,856 | 1,586 | $ 1,400 |
Foreign Pension Plans, Defined Benefit | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,856 | 1,586 | |
Foreign Pension Plans, Defined Benefit | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Corporate Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Corporate Debt Securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Corporate Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Corporate Debt Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | US Government Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | US Government Debt Securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | US Government Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | US Government Debt Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Global equity Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Global equity Securities | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Global equity Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Global equity Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Other | |||
Defined Benefit Plan Disclosure | |||
Total | 1,856 | 1,586 | |
Foreign Pension Plans, Defined Benefit | Other | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,856 | $ 1,586 | |
Foreign Pension Plans, Defined Benefit | Other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Cash and Cash Equivalents | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Cash and Cash Equivalents | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 0 | ||
Foreign Pension Plans, Defined Benefit | Cash and Cash Equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | $ 0 |
Schedule of Expected Future Ben
Schedule of Expected Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
UNITED STATES | |
Defined Benefit Plan Disclosure | |
2021 | $ 8,902 |
2022 | 8,782 |
2023 | 9,189 |
2024 | 9,815 |
2025 | 10,374 |
2026-2030 | 54,145 |
Foreign Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure | |
2021 | 1,058 |
2022 | 1,063 |
2023 | 1,313 |
2024 | 1,192 |
2025 | 1,140 |
2026-2030 | 7,053 |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure | |
2021 | 1,161 |
2022 | 961 |
2023 | 786 |
2024 | 646 |
2025 | 533 |
2026-2030 | $ 1,601 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Total shareholder return performance measurement period | 3 years | |||||||||
Restricted stock unit awards granted | 616,000 | 1,139,000 | 790,000 | |||||||
Weighted average grant date fair value of restricted stock units granted | $ 72,760 | $ 39,080 | $ 45,990 | |||||||
Stock price | $ 72.61 | $ 37.95 | $ 47.70 | |||||||
Tax benefit from compensation expense | $ 13,060,000 | $ 8,360,000 | $ 12,036,000 | |||||||
Total unrecognized expense related to non-vested restricted stock unit awards and stock options | $ 44,000,000 | |||||||||
Unrecognized expense related to non-vested restricted stock unit awards and stock options expected to be recognized over weighted average period, in years | 2 years 4 months 24 days | |||||||||
Maximum percent of shares allowed to purchase | 10.00% | |||||||||
Fair market value | $ 25,000 | |||||||||
Maximum number of shares allowed to purchase | 6,000 | |||||||||
Percentage of common stock price paid | 85.00% | |||||||||
Common stock issued to employees | 200,000 | 200,000 | 300,000 | 400,000 | 300,000 | |||||
Value of common stock issued to employees per share | $ 71.83 | $ 40.72 | $ 32.36 | $ 101.91 | $ 57.96 | $ 26.67 | ||||
Number of shares available for grant | 6,123,000 | 6,727,000 | 7,874,000 | 8,605,000 | ||||||
Stock Based Compensation Relating To Retirement Agreement | $ 44,906,000 | $ 37,897,000 | $ 33,577,000 | |||||||
Retirement Agreement [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Stock Based Compensation Relating To Retirement Agreement | 2,100,000 | |||||||||
Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Cash received from employees, employee stock options exercises | 3,800,000 | 3,700,000 | 1,000,000 | |||||||
Tax benefit from compensation expense | $ 1,500,000 | $ 2,000,000 | $ 400,000 | |||||||
Percentage of common stock price paid | 100.00% | |||||||||
Stock Options | Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 4 years | |||||||||
Stock Options | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 7 years | |||||||||
Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Restricted stock unit awards granted | 616,000 | 1,139,000 | 790,000 | |||||||
Restricted Stock Units | Employees | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 4 years | |||||||||
Restricted Stock Units | Director | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 1 year | |||||||||
Percentage of awards vesting on the first anniversary of grant date | 100.00% | |||||||||
TSR Performance-Based Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Total shareholder return performance measurement period | 3 years | |||||||||
Share-based compensation arrangement by share-based payment award, description | capped at four times the grant date value for grants prior to 2019 | |||||||||
Minimum age of retirement to be eligible for PRSUs | 60 years | |||||||||
Minimum years of service for retirement to be eligible for PRSUs | 10 years | |||||||||
Restricted stock unit awards granted | 100,000 | 100,000 | 100,000 | |||||||
Weighted average grant date fair value of restricted stock units granted | $ 89.93 | $ 51.51 | $ 54.85 | |||||||
Stock price | 72.10 | 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 | $ 0.40 | $ 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% | |||||||||
Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Number of shares available for grant | 1,400,000 | |||||||||
PBIT Performance-Based Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Restricted stock unit awards granted | 100,000 | 100,000 | 100,000 | |||||||
Weighted average grant date fair value of restricted stock units granted | $ 70.94 | $ 36.88 | $ 46.62 | |||||||
Service-Based Restricted Stock Units | Employees | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Restricted stock unit awards granted | 400,000 | 800,000 | 600,000 | |||||||
Weighted average grant date fair value of restricted stock units granted | $ 71.31 | $ 37.65 | $ 45.92 | |||||||
Service-Based Restricted Stock Units | Non Employee Directors And Certain Employees | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Restricted stock unit awards granted | 100,000 | 100,000 | 100,000 | |||||||
Weighted average grant date fair value of restricted stock units granted | $ 66.56 | $ 48.03 | $ 35.81 | |||||||
Service-Based Restricted Stock Units | Executive Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Restricted stock unit awards granted | 100,000 | 100,000 | 100,000 | |||||||
Weighted average grant date fair value of restricted stock units granted | $ 20.93 | $ 10.64 | $ 12.17 | |||||||
Subsequent Event | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Common stock issued to employees | 100,000 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions (Detail) - TSR Performance-Based Restricted Stock Units | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 1.50% | 2.60% | 2.20% |
Expected historical volatility | 34.90% | 31.90% | 26.80% |
Dividend yield | 0.60% | 1.00% | 0.80% |
New York Stock Exchange Composite Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected historical volatility | 11.40% | 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (years) | 5 years | 5 years | 5 years |
Risk-free interest rate | 1.50% | 2.50% | 2.40% |
Volatility-historical | 32.00% | 30.10% | 26.40% |
Dividend yield | 0.50% | 1.00% | 0.80% |
Schedule of Stock Compensation
Schedule of Stock Compensation Plan Activity (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awarded | 616 | 1,139 | 790 |
Forfeited | (68) | (87) | (128) |
Outstanding at January 1 | 319 | 506 | 531 |
Granted | 56 | 102 | 69 |
Exercised | (159) | (280) | (94) |
Forfeited | (7) | ||
Expired | (2) | ||
Outstanding at December 31 | 216 | 319 | 506 |
Vested and expected to vest at December 31 | 216 | 319 | 506 |
Exercisable at December 31 | 27 | 85 | 256 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | 2,269 | 2,454 | 3,174 |
Awarded | 616 | 1,139 | 790 |
Vested | (1,028) | (1,237) | (1,382) |
Forfeited | (68) | (87) | (128) |
Non-vested at December 31 | 1,789 | 2,269 | 2,454 |
Schedule of Share Based Compens
Schedule of Share Based Compensation Total Shares Available (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Available for grant at January 1 | 6,727 | 7,874 | 8,605 |
Options granted | (56) | (102) | (69) |
Options forfeited | 7 | ||
Restricted stock units awarded | (616) | (1,139) | (790) |
Restricted stock units forfeited | 68 | 87 | 128 |
Available for grant at December 31 | 6,123 | 6,727 | 7,874 |
Schedule of Weighted-Average Re
Schedule of Weighted-Average Restricted Stock Unit Award Fair Value (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | $ 35,580 | $ 29,220 | $ 21,710 |
Awarded | 72,760 | 39,080 | 45,990 |
Vested | 31,530 | 23,590 | 20,200 |
Forfeited | 45,360 | 35,600 | 24,670 |
Non-vested at December 31 | $ 47,840 | $ 35,580 | $ 29,220 |
Schedule of Restricted Stock Un
Schedule of Restricted Stock Unit Awards Aggregate Intrinsic Value (Detail) - Restricted Stock Units - USD ($) $ / shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vested | $ 71,582 | $ 46,110 | $ 63,688 |
Outstanding | $ 214,509 | $ 154,752 | $ 77,015 |
Expected to vest | $ 210,301 | $ 152,374 | $ 77,187 |
Schedule of Restricted Stock _2
Schedule of Restricted Stock Units Weighted Average Remaining Contractual Terms (Detail) - Restricted Stock Units | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 11 months 15 days | 1 year 7 days | 11 months 1 day |
Expected to vest | 11 months 15 days | 1 year 7 days | 10 months 28 days |
Schedule of Weighted Average St
Schedule of Weighted Average Stock Options Exercise Price (Detail) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Outstanding at January 1 | $ 29.91 |
Options granted | 72.61 |
Options exercised | 23.77 |
Options forfeited | |
Options cancelled | |
Outstanding at December 31 | 45.59 |
Exercisable at December 31 | $ 23.51 |
Schedule of Stock Option Aggreg
Schedule of Stock Option Aggregated Intrinsic Value Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercised | $ 9,682 | $ 9,232 | $ 2,960 |
Outstanding | 16,083 | 12,218 | 7,359 |
Vested and expected to vest | 13,499 | 7,701 | 7,359 |
Exercisable | $ 2,584 | $ 4,517 | $ 5,905 |
Schedule of Stock Options Weigh
Schedule of Stock Options Weighted Average Remaining Contractual Terms (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 4 years 7 months 6 days | 4 years 2 months 12 days | 3 years 7 months 6 days |
Vested and expected to vest | 4 years 10 months 24 days | 5 years | 3 years 7 months 6 days |
Exercisable | 2 years 6 months | 2 years 1 month 6 days | 2 years 4 months 24 days |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 44,906 | $ 37,897 | $ 33,577 |
Income tax benefit | (13,060) | (8,360) | (12,036) |
Total stock-based compensation expense after income taxes | 31,846 | 29,537 | 21,541 |
Cost Of Revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4,227 | 3,480 | 3,129 |
Engineering And Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 12,039 | 9,913 | 9,181 |
Selling and Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 28,640 | $ 24,504 | $ 21,267 |
Savings Plan - Additional Infor
Savings Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Savings Plan [Line Items] | |||
Savings plan maximum percentage of employees contribution allowable | 20.00% | ||
Percentage of employer contributions vested per year | 25.00% | ||
Maximum employment period considered for vesting of employers' contribution, in years | 4 years | ||
Liability, Retirement and Postemployment Benefits | $ 38 | $ 32.7 | |
U.S. Qualified Pension Plan | |||
Savings Plan [Line Items] | |||
Maximum percentage of matching contributions made by the employer | 100.00% | 100.00% | 100.00% |
Percentage of employer match on employee contribution | 4.00% | 4.00% | 4.00% |
Savings Plan | |||
Savings Plan [Line Items] | |||
Amounts charged to statements of operations | $ 21.7 | $ 20.9 | $ 19.4 |
Schedule of Income (Loss) Befor
Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | [1],[2] | Sep. 27, 2020 | [2],[3] | Jun. 28, 2020 | [2],[4] | Mar. 29, 2020 | [5] | Dec. 31, 2019 | [6],[7],[8] | Sep. 30, 2019 | [9] | Jun. 30, 2019 | [10] | Mar. 31, 2019 | [11] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||||||||||||||||||
U.S. | $ 312,153 | $ 192,442 | $ 189,691 | ||||||||||||||||
Non-U.S. | 588,862 | 333,330 | 278,110 | ||||||||||||||||
Income before income taxes | $ 222,925 | $ 263,731 | $ 217,291 | $ 197,069 | $ 148,886 | $ 151,733 | $ 131,177 | $ 93,979 | $ 901,015 | $ 525,772 | $ 467,801 | ||||||||
[1] | Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[4] | Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. | ||||||||||||||||||
[5] | Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. | ||||||||||||||||||
[6] | Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. | ||||||||||||||||||
[7] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[9] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[10] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[11] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. |
Schedule of Provision (Benefit)
Schedule of Provision (Benefit) for Income Taxes from Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | [1],[2] | Sep. 27, 2020 | [2],[3] | Jun. 28, 2020 | [2],[4] | Mar. 29, 2020 | [5] | Dec. 31, 2019 | [6],[7],[8] | Sep. 30, 2019 | [9] | Jun. 30, 2019 | [10] | Mar. 31, 2019 | [11] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||||||||||||||||||
Current, U.S. Federal | $ 58,678 | $ 19,297 | $ (59,122) | ||||||||||||||||
Current, Non-U.S. | 75,193 | 52,810 | 45,083 | ||||||||||||||||
Current, State | (1,315) | (4,347) | 1,721 | ||||||||||||||||
Current, Total | 132,556 | 67,760 | (12,318) | ||||||||||||||||
Deferred, U.S. Federal | (12,604) | (4,522) | 29,252 | ||||||||||||||||
Deferred, Non-U.S. | (5,127) | (8,007) | (1,243) | ||||||||||||||||
Deferred, State | 2,043 | 3,073 | 331 | ||||||||||||||||
Deferred, Total | (15,688) | (9,456) | 28,340 | ||||||||||||||||
Total provision for income taxes | $ 26,595 | $ 41,013 | $ 28,383 | $ 20,878 | $ 23,811 | $ 15,873 | $ 33,780 | $ (15,159) | $ 116,868 | $ 58,304 | $ 16,022 | ||||||||
[1] | Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. | ||||||||||||||||||
[4] | Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. | ||||||||||||||||||
[5] | Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. | ||||||||||||||||||
[6] | Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. | ||||||||||||||||||
[7] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[9] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[10] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[11] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2020 | Sep. 27, 2020 | [2],[3] | Jun. 28, 2020 | [2],[4] | Mar. 29, 2020 | [5] | Dec. 31, 2019 | Sep. 30, 2019 | [9] | Jun. 30, 2019 | [10] | Mar. 31, 2019 | [11] | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Taxes [Line Items] | |||||||||||||||||||||
Total (benefit) provision for income taxes | $ 26,595 | [1],[2] | $ 41,013 | $ 28,383 | $ 20,878 | $ 23,811 | [6],[7],[8] | $ 15,873 | $ 33,780 | $ (15,159) | $ 116,868 | $ 58,304 | $ 16,022 | ||||||||
Effective tax rate | 13.00% | 11.10% | 3.40% | ||||||||||||||||||
Provisional amount of additional income tax expense | $ 49,500 | $ 186,000 | |||||||||||||||||||
Transition tax on mandatory deemed repatriation of foreign earnings | $ 51,700 | 161,000 | |||||||||||||||||||
Expense (benefit) associated with impact of correlative adjustments on tax positions | 2,200 | ||||||||||||||||||||
Tax savings due to the tax holiday | $ 29,900 | $ 15,100 | $ 11,900 | ||||||||||||||||||
Tax savings due to the tax holiday, per share | $ 0.16 | $ 0.08 | $ 0.06 | ||||||||||||||||||
Tax holiday expiration date | December 31, 2025 | ||||||||||||||||||||
Valuation allowance includes net deferred tax assets | 84,962 | 77,177 | $ 84,962 | $ 77,177 | |||||||||||||||||
Tax credit carryforwards, approximately | 116,300 | ||||||||||||||||||||
Tax credits carryforwards | 87,595 | 79,480 | 87,595 | 79,480 | |||||||||||||||||
Reduction in unrecognized tax benefits | 17,903 | 21,180 | $ 43,395 | 17,903 | 21,180 | $ 43,395 | 36,263 | ||||||||||||||
Unrecognized tax benefits, if recognized would impact effective tax rate | 12,000 | 12,000 | |||||||||||||||||||
Unrecognized tax benefits, if recognized would impact deferred taxes | 5,900 | 5,900 | |||||||||||||||||||
Accrued interest and penalties | 1,200 | $ 1,400 | 1,200 | 1,400 | |||||||||||||||||
Interest and penalties related to income tax, expense (benefit) | 200 | 1,100 | $ 100 | ||||||||||||||||||
Expense related to remeasurement of deferred tax assets and liabilities | 33,600 | ||||||||||||||||||||
Possible Lapse Of Statutes Of Limitations [Member] | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,600 | 1,600 | |||||||||||||||||||
InterCompany Cost Sharing Arrangement [Member] | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Total (benefit) provision for income taxes | 2,300 | $ 6,300 | |||||||||||||||||||
United States | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credits carryforwards, business | $ 1,900 | ||||||||||||||||||||
Tax credit carryforward, expiration date | 2028 | ||||||||||||||||||||
State and Local Jurisdiction | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Provisional amount of additional income tax expense | $ 186,000 | ||||||||||||||||||||
Expense (benefit) associated with impact of correlative adjustments on tax positions | 10,300 | ||||||||||||||||||||
Tax credits carryforwards | $ 114,300 | ||||||||||||||||||||
Reduction in unrecognized tax benefits | $ 17,900 | $ 17,900 | |||||||||||||||||||
State and Local Jurisdiction | Earliest Tax Year | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credit carryforward, expiration date | 2021 | ||||||||||||||||||||
State and Local Jurisdiction | Latest Tax Year | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credit carryforward, expiration date | 2040 | ||||||||||||||||||||
State and Local Jurisdiction | Do Not Expire | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credits carryforwards | $ 63,800 | ||||||||||||||||||||
[1] | Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. | ||||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[3] | Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. | ||||||||||||||||||||
[4] | Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. | ||||||||||||||||||||
[5] | Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. | ||||||||||||||||||||
[6] | Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. | ||||||||||||||||||||
[7] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[9] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[10] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[11] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. |
Schedule of Reconciliation of E
Schedule of Reconciliation of Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||
U.S. statutory federal tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal tax benefit | 0.30% | 0.50% | 0.10% |
U.S. global intangible low-taxed income | 5.70% | 6.20% | 0.30% |
Foreign taxes | (5.60%) | (4.00%) | (2.00%) |
Foreign tax credits | (4.80%) | (5.90%) | (2.20%) |
U.S. foreign derived intangible income | (2.20%) | (2.60%) | (1.80%) |
U.S. research and development credit | (1.30%) | (1.80%) | (2.20%) |
Equity compensation | (0.60%) | (0.70%) | (1.20%) |
Uncertain tax positions | (0.10%) | (4.30%) | 1.00% |
U.S. transition tax | 1.90% | (10.50%) | |
Impact of rate change on deferred taxes | 0.30% | ||
Other, net | 0.60% | 0.80% | 0.60% |
Effective tax rate, Total | 13.00% | 11.10% | 3.40% |
Schedule of Components of Defer
Schedule of Components of Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Line Items] | ||
Tax credits | $ 87,595 | $ 79,480 |
Accruals | 33,156 | 25,424 |
Pension liabilities | 28,348 | 24,459 |
Inventory valuations | 18,427 | 18,572 |
Lease liability | 12,627 | 13,093 |
Deferred revenue | 9,235 | 7,622 |
Equity compensation | 6,543 | 7,042 |
Vacation accrual | 5,890 | 4,768 |
Investment impairment | 3,292 | 3,292 |
Net operating loss carryforwards | 1,823 | 2,705 |
Other | 626 | 187 |
Gross deferred tax assets | 207,562 | 186,644 |
Less: valuation allowance | (84,962) | (77,177) |
Total deferred tax assets | 122,600 | 109,467 |
Depreciation | (14,525) | (18,238) |
Intangible assets | (12,726) | (16,705) |
Right of use assets | (10,688) | (11,197) |
Contingent consideration | (3,515) | |
Marketable securities | (3,344) | (1,601) |
Other | (710) | (611) |
Total deferred tax liabilities | (45,508) | (48,352) |
Net deferred assets | $ 77,092 | $ 61,115 |
Summary of Operating Loss Carry
Summary of Operating Loss Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | $ 17,449 | |
Foreign Operating Loss Carryforwards | $ 3,991 | |
2021 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 333 | |
2022 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 2,203 | |
2023 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 3,368 | |
2024 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 812 | |
2025 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 191 | |
2026-2030 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 7,452 | |
2031-2035 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 2,147 | |
Foreign Operating Loss Carryforwards | 68 | |
Beyond 2035 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 73 | |
Non-Expiring | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | $ 870 | |
Foreign Operating Loss Carryforwards | $ 3,923 |
Schedule of Unrecognized Tax Be
Schedule of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||
Beginning balance, as of January 1 | $ 21,180 | $ 43,395 | $ 36,263 |
Tax positions for current year, Additions | 1,082 | 1,322 | 4,716 |
Tax positions for prior years, Additions | 66 | 8,043 | 2,626 |
Tax positions for prior years, Reductions | (2,989) | (31,397) | (153) |
Expiration of statutes, Reductions | (1,436) | (183) | (57) |
Ending balance as of December 31 | $ 17,903 | $ 21,180 | $ 43,395 |
Operating Segment, Geographic_3
Operating Segment, Geographic and Significant Customer Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020Segment | Dec. 31, 2019Customer | Dec. 31, 2018Customer | |
Segment Reporting Information [Line Items] | |||
Operating segments | Segment | 4 | ||
Number of customer accounted for more than ten percent of consolidated revenue | Customer | 0 | 0 | |
Consolidated Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Semiconductor Test | Consolidated Revenue | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 25.00% | 10.00% | 13.00% |
Semiconductor Test | Customer 1 | Consolidated Revenue | Revenue from Rights Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
Semiconductor Test | Customer 1 | Consolidated Revenue | Revenue from Rights Concentration Risk | Series of Customer [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 3.00% | 11.00% |
Schedule of Segment Information
Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | [1],[2] | $ 3,121,469 | $ 2,294,965 | $ 2,100,802 |
Income (loss) before taxes | 901,015 | 525,772 | 467,801 | |
Total assets | 3,652,346 | 2,787,014 | 2,706,606 | |
Property additions | 184,977 | 134,642 | 114,379 | |
Depreciation and amortization expense | 126,743 | 120,655 | 113,224 | |
Semiconductor Test | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,259,597 | 1,552,571 | 1,492,417 | |
Income (loss) before taxes | 739,695 | 416,973 | 397,645 | |
Total assets | 1,070,378 | 784,808 | 669,452 | |
Property additions | 168,055 | 112,145 | 94,496 | |
Depreciation and amortization expense | 64,998 | 59,197 | 58,095 | |
System Test | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 409,729 | 287,455 | 216,132 |
Income (loss) before taxes | 152,092 | 93,543 | 48,857 | |
Total assets | 138,295 | 131,428 | 88,098 | |
Property additions | 3,092 | 3,059 | 3,469 | |
Depreciation and amortization expense | 3,426 | 5,518 | 6,430 | |
Industrial Automation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 279,731 | 298,139 | 261,452 | |
Income (loss) before taxes | (24,019) | (5,916) | 7,670 | |
Total assets | 712,936 | 671,559 | 607,502 | |
Property additions | 8,899 | 9,076 | 11,188 | |
Depreciation and amortization expense | 36,242 | 40,904 | 36,755 | |
Wireless Test | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 173,016 | 157,315 | 132,006 |
Income (loss) before taxes | 41,950 | 35,585 | 29,052 | |
Total assets | 106,273 | 97,299 | 77,570 | |
Property additions | 4,931 | 10,362 | 5,226 | |
Depreciation and amortization expense | 6,258 | 5,365 | 5,328 | |
Corporate And Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (604) | (515) | (1,205) | |
Income (loss) before taxes | (8,703) | (14,413) | (15,423) | |
Total assets | 1,624,464 | 1,101,920 | 1,263,984 | |
Depreciation and amortization expense | $ 15,819 | $ 9,671 | $ 6,616 | |
[1] | Includes $10.0 million, $8.4 million and $12.0 million in 2020, 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” | |||
[2] | Revenues attributable to a country are based on location of customer site. |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | [1],[2] | Sep. 30, 2020 | Sep. 27, 2020 | [2],[3] | Jun. 30, 2020 | Jun. 28, 2020 | [2],[4] | Mar. 31, 2020 | Mar. 29, 2020 | [5] | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Acquisition related costs | $ 500 | $ 3,100 | $ 1,400 | $ 200 | $ 500 | $ 500 | $ 1,300 | |||||||||||||||
Restructuring and other-employee severance | $ (15,117) | $ (27,701) | $ 37,222 | $ (7,606) | (2,088) | [6],[7],[8] | (6,500) | [9] | (10,404) | [10] | 5,112 | [11] | $ (13,202) | $ (13,880) | $ 15,232 | |||||||
Contingent consideration adjustment | (23,271) | (19,257) | 987 | |||||||||||||||||||
Investment impairment | 15,000 | 15,000 | ||||||||||||||||||||
Universal Robots (UR) | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Contingent consideration adjustment | $ 27,200 | $ 29,900 | $ 10,000 | $ 7,800 | $ 11,700 | $ 3,000 | 3,800 | |||||||||||||||
Mobile Industrial Robots (MiR) | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Contingent consideration adjustment | $ 5,800 | |||||||||||||||||||||
Semiconductor Test | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Acquisition related costs | 2,500 | 2,500 | ||||||||||||||||||||
Cost of revenues-inventory charge | 1,277 | 8,429 | ||||||||||||||||||||
Restructuring and other-employee severance | 11,013 | |||||||||||||||||||||
Contingent consideration adjustment | 3,500 | |||||||||||||||||||||
Contract termination settlement fee | 4,000 | |||||||||||||||||||||
Semiconductor Test | Severance And Benefits | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Restructuring and other-employee severance | 8,731 | 6,822 | ||||||||||||||||||||
Industrial Automation | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Acquisition related costs | 985 | 741 | 1,163 | |||||||||||||||||||
Cost of revenues-inventory charge | 887 | 2,000 | 1,175 | |||||||||||||||||||
Restructuring and other-employee severance | 1,584 | 796 | ||||||||||||||||||||
Industrial Automation | Restructuring and other | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Acquisition related costs | 1,728 | 1,765 | ||||||||||||||||||||
Industrial Automation | Severance And Benefits | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Restructuring and other-employee severance | 3,422 | |||||||||||||||||||||
System Test | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Cost of revenues-inventory charge | 834 | 508 | 680 | |||||||||||||||||||
Wireless Test | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Cost of revenues-inventory charge | 4,800 | 4,005 | 2,565 | |||||||||||||||||||
Corporate And Eliminations | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Selling and administrative – equity modification charge | 766 | 2,108 | ||||||||||||||||||||
Corporate And Eliminations | Restructuring and other | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Investment impairment | 15,000 | |||||||||||||||||||||
Corporate And Eliminations | Universal Robots (UR) | Restructuring and other | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Contingent consideration adjustment | (16,679) | |||||||||||||||||||||
Corporate And Eliminations | Mobile Industrial Robots (MiR) | Restructuring and other | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Restructuring and other-lease impairment | (3,546) | (22,199) | $ 17,666 | |||||||||||||||||||
Contingent consideration adjustment | $ (19,724) | $ 2,976 | ||||||||||||||||||||
[1] | Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. | |||||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||||
[3] | Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. | |||||||||||||||||||||
[4] | Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. | |||||||||||||||||||||
[5] | Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. | |||||||||||||||||||||
[6] | Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. | |||||||||||||||||||||
[7] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | |||||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||||
[9] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | |||||||||||||||||||||
[10] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | |||||||||||||||||||||
[11] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. |
Schedule of Revenues by Country
Schedule of Revenues by Country (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1],[2] | $ 3,121,469 | $ 2,294,965 | $ 2,100,802 |
CHINA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 465,722 | 514,327 | 348,942 |
TAIWAN | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 1,178,068 | 485,681 | 516,322 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 321,674 | 333,059 | 282,869 |
KOREA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 391,571 | 239,504 | 163,224 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 205,587 | 219,015 | 223,207 |
JAPAN | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 143,983 | 175,322 | 158,281 |
THAILAND | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 138,787 | 87,503 | 59,184 |
SINGAPORE | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 76,460 | 84,111 | 108,618 |
MALAYSIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 56,096 | 58,200 | 122,797 |
PHILIPPINES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | 68,887 | 54,560 | 77,996 |
Rest Of The World | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [2] | $ 74,634 | $ 43,683 | $ 39,362 |
[1] | Includes $10.0 million, $8.4 million and $12.0 million in 2020, 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” | |||
[2] | Revenues attributable to a country are based on location of customer site. |
Schedule of Long-Lived Assets b
Schedule of Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 449,369 | $ 377,755 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 291,234 | 252,812 | |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | $ 158,135 | $ 124,943 |
[1] | As of December 31, 2020 and 2019, long-lived assets attributable to Singapore were $62.5 million and $35.2 million, respectively. |
Schedule of Long-Lived Assets_2
Schedule of Long-Lived Assets by Geographic Area (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 449,369 | $ 377,755 |
SINGAPORE | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 62,500 | $ 35,200 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jan. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2021 | Jan. 01, 2020 | Jan. 31, 2019 |
Stock Repurchase Programs [Line Items] | |||||||
Cumulative repurchases, shares | 10.9 | 1.5 | 32.5 | 21.6 | 2 | 1,000 | |
Cumulative repurchases, value | $ 88.5 | $ 1,323 | $ 823.5 | $ 600 | |||
Common stock average price | $ 45.89 | $ 58.33 | $ 40.68 | $ 38.06 | |||
Maximum | |||||||
Stock Repurchase Programs [Line Items] | |||||||
Cumulative repurchases, value | $ 500 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 1 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Subsequent Event [Line Items] | ||
Cash Dividends payable, amount per share | $ 0.10 | |
Cash Dividends payable, date to be paid | Mar. 19, 2021 | |
Cash Dividends payable, record date | Feb. 19, 2021 |
Consolidated Quarterly Statemen
Consolidated Quarterly Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2020 | [1],[2] | Sep. 27, 2020 | [2],[3] | Jun. 28, 2020 | [2],[4] | Mar. 31, 2020 | [5] | Mar. 29, 2020 | [6] | Dec. 31, 2019 | [7],[8],[9] | Sep. 30, 2019 | [10] | Jun. 30, 2019 | [11] | Mar. 31, 2019 | [5] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Total revenues | $ 758,968 | $ 819,484 | $ 838,661 | $ 494,099 | $ 704,355 | $ 654,650 | $ 582,038 | $ 564,178 | |||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 309,179 | 360,556 | 367,188 | 298,805 | 271,412 | 237,000 | 240,260 | $ 206,464 | $ 1,335,728 | $ 955,136 | $ 880,408 | ||||||||||
Gross profit | 449,789 | 458,928 | 471,473 | 405,550 | 383,238 | 345,038 | 323,918 | 287,635 | 1,785,741 | 1,339,829 | 1,220,394 | ||||||||||
Selling and administrative | 124,279 | 115,840 | 113,259 | 111,388 | 117,092 | 109,166 | 108,811 | 102,013 | 464,769 | 437,084 | 390,669 | ||||||||||
Engineering and development | 100,795 | 94,909 | 94,102 | 85,159 | 86,794 | 77,804 | 81,434 | 76,791 | 374,964 | 322,824 | 301,505 | ||||||||||
Acquired intangible assets amortization | 5,752 | 6,219 | 8,941 | 9,891 | 9,784 | 9,647 | 10,083 | 10,634 | 30,803 | 40,147 | 39,191 | ||||||||||
Restructuring and other | (15,117) | (27,701) | 37,222 | (7,606) | (2,088) | (6,500) | (10,404) | 5,112 | (13,202) | (13,880) | 15,232 | ||||||||||
Total operating expenses | 215,709 | 189,267 | 253,524 | 198,832 | 211,582 | 190,117 | 189,924 | 194,550 | 857,334 | 786,175 | 746,597 | ||||||||||
Income from operations | 234,080 | 269,661 | 217,949 | 206,718 | 171,656 | 154,921 | 133,994 | 93,085 | 928,407 | 553,654 | 473,797 | ||||||||||
Interest income | (793) | (1,071) | (1,368) | (2,751) | (3,185) | (4,433) | (4,384) | (4,989) | (5,982) | (16,990) | (20,458) | ||||||||||
Interest expense | 6,351 | 6,237 | 6,043 | 5,551 | 5,441 | 5,463 | 5,800 | 5,520 | 24,182 | 22,224 | 21,780 | ||||||||||
Other (income) expense, net | 5,597 | 764 | (4,017) | 6,849 | 20,514 | 2,158 | 1,401 | (1,425) | 9,192 | 22,648 | 4,674 | ||||||||||
Income before income taxes | 222,925 | 263,731 | 217,291 | 197,069 | 148,886 | 151,733 | 131,177 | 93,979 | 901,015 | 525,772 | 467,801 | ||||||||||
Income tax provision (benefit) | 26,595 | 41,013 | 28,383 | 20,878 | 23,811 | 15,873 | 33,780 | (15,159) | 116,868 | 58,304 | 16,022 | ||||||||||
Net income | $ 196,330 | $ 222,718 | $ 188,908 | $ 176,191 | $ 125,075 | $ 135,860 | $ 97,397 | $ 109,138 | $ 784,147 | $ 467,468 | $ 451,779 | ||||||||||
Net income per common share—basic | $ 1.18 | $ 1.34 | $ 1.14 | $ 1.06 | $ 0.75 | $ 0.80 | $ 0.57 | $ 0.63 | $ 4.72 | $ 2.74 | $ 2.41 | ||||||||||
Net income per common share—diluted | 1.05 | 1.21 | 1.05 | 0.97 | 0.69 | 0.75 | 0.55 | 0.62 | $ 4.28 | $ 2.60 | $ 2.35 | ||||||||||
Cash dividend declared per common share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | |||||||||||||
Product [Member] | |||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Total revenues | $ 647,625 | $ 697,745 | $ 734,630 | 393,442 | $ 610,906 | $ 548,552 | $ 488,170 | $ 457,511 | |||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 274,574 | 300,174 | 322,732 | 259,996 | 226,184 | 197,196 | 193,299 | $ 165,368 | $ 1,157,476 | $ 782,047 | $ 727,138 | ||||||||||
Service [Member] | |||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Total revenues | 111,343 | 121,739 | 104,031 | $ 100,657 | 93,449 | 106,098 | 93,868 | 106,667 | |||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 34,605 | $ 60,382 | $ 44,456 | $ 38,809 | $ 45,228 | $ 39,804 | $ 46,961 | $ 41,096 | $ 178,252 | $ 173,089 | $ 153,270 | ||||||||||
[1] | Restructuring and other includes a $15.3 million gain for the decrease in the fair value adjustment to the AutoGuide acquisition contingent consideration liability, and a $0.9 million gain for the decrease in acquisition related compensation liability, partially offset by $1.1 million of employee severance charges primarily in Industrial Automation. | ||||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $2.7 million, $7.7 million for the second, third and fourth quarter in 2020, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[3] | Restructuring and other includes a $27.2 million gain for the decrease in the fair value of AutoGuide contingent consideration liability, and a $1.1 million gain for the decrease in acquisition related compensation liability, partially offset by $0.5 million recorded for employee severance charges primarily in Industrial Automation. | ||||||||||||||||||||
[4] | Restructuring and other includes a $29.9 million charge for the increase in the fair value of the AutoGuide contingent consideration liability, a $4.0 million contract termination settlement charge, $3.1 million of acquisition related compensation and expense and $0.8 million of other expenses, partially offset by a $0.6 million gain for the decrease in the fair value of MiR contingent consideration liability. | ||||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | ||||||||||||||||||||
[6] | Restructuring and other includes a $10.0 million gain for the decrease in the fair value of the AutoGuide and MiR contingent consideration liabilities, partially offset by $1.4 million of acquisition related compensation and expenses and $0.7 million of severance charges related to headcount reductions primarily in Industrial Automation and Semiconductor Test. | ||||||||||||||||||||
[7] | Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. | ||||||||||||||||||||
[8] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[9] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[10] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[11] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. |
Consolidated Quarterly Statem_2
Consolidated Quarterly Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information [Line Items] | |||||||||||
Contingent consideration fair value adjustment | $ (23,271) | $ (19,257) | $ 987 | ||||||||
Impairment of fixed assets and other expenses | $ 800 | ||||||||||
Severance benefit and charges | $ 1,100 | $ 1,100 | $ 700 | $ 500 | $ 800 | $ 800 | $ 800 | ||||
Acquisition related expense and compensation | 500 | 3,100 | 1,400 | 200 | 500 | 500 | 1,300 | ||||
Pension and post retirement net actuarial (gains) losses | 7,700 | 2,700 | 100 | 7,700 | (29,000) | ||||||
Investment impairment | 15,000 | 15,000 | |||||||||
Universal Robots (UR) | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Contingent consideration fair value adjustment | $ 27,200 | 29,900 | $ 10,000 | $ 7,800 | $ 11,700 | $ 3,000 | 3,800 | ||||
Mobile Industrial Robots (MiR) | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Contingent consideration fair value adjustment | 5,800 | ||||||||||
Autoguide LLC | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Contingent consideration fair value adjustment | 15,300 | 600 | $ 3,000 | $ 3,000 | |||||||
Acquisition related expense and compensation | $ 900 | ||||||||||
Contract termination settlement fee | $ 4,000 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,736 | $ 1,673 | $ 2,219 |
Additions Charged to Cost and Expenses | 356 | 87 | 0 |
Other | 32 | 28 | 20 |
Deductions | 90 | 52 | 566 |
Balance at End of Period | 2,034 | 1,736 | 1,673 |
Inventory Reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 103,556 | 100,779 | 102,896 |
Additions Charged to Cost and Expenses | 17,534 | 15,244 | 11,242 |
Other | (521) | (85) | 368 |
Deductions | 9,982 | 12,382 | 13,727 |
Balance at End of Period | 110,587 | 103,556 | 100,779 |
Valuation Allowance of Deferred Tax Assets | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 77,177 | 69,852 | 63,919 |
Additions Charged to Cost and Expenses | 7,785 | 7,325 | 6,333 |
Other | 0 | 0 | |
Deductions | 0 | 400 | |
Balance at End of Period | $ 84,962 | $ 77,177 | $ 69,852 |