Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 03, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0000097210 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Oct. 3, 2021 | |
Entity Registrant Name | TERADYNE, INC. | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | TER | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-06462 | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2272148 | |
Entity Address, Address Line One | 600 Riverpark Drive | |
Entity Address, City or Town | North Reading | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01864 | |
City Area Code | 978 | |
Local Phone Number | 370-2700 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 163,004,340 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 1,079,454 | $ 914,121 | |
Marketable securities | 233,397 | 522,280 | |
Accounts receivable, less allowance for credit losses of $1,913 and $2,034 at October 3, 2021 and December 31, 2020, respectively | 597,124 | 497,506 | |
Inventories, net | 224,242 | 222,189 | |
Prepayments and other current assets | 386,967 | 259,338 | |
Total current assets | 2,521,184 | 2,415,434 | |
Property, plant and equipment, net | 390,545 | 394,800 | |
Operating lease right-of-use assets, net | 61,608 | 54,569 | |
Marketable securities | 136,664 | 117,980 | |
Deferred tax assets | 96,808 | 87,913 | |
Retirement plans assets | 16,958 | 17,468 | |
Other assets | 23,340 | 9,384 | |
Acquired intangible assets, net | 81,677 | 100,939 | |
Goodwill | 433,398 | 453,859 | |
Total assets | 3,762,182 | [1],[2] | 3,652,346 |
Current liabilities: | |||
Accounts payable | 154,912 | 133,663 | |
Accrued employees' compensation and withholdings | 196,928 | 220,321 | |
Deferred revenue and customer advances | 140,380 | 134,662 | |
Other accrued liabilities | 135,492 | 77,581 | |
Operating lease liabilities | 20,601 | 20,573 | |
Income taxes payable | 73,077 | 80,728 | |
Current debt | 32,219 | 33,343 | |
Total current liabilities | 753,609 | 700,871 | |
Retirement plans liabilities | 153,249 | 151,140 | |
Long-term deferred revenue and customer advances | 60,022 | 58,359 | |
Long-term contingent consideration | 0 | 7,227 | |
Long-term other accrued liabilities | 19,704 | 19,352 | |
Deferred tax liabilities | 6,907 | 10,821 | |
Long-term operating lease liabilities | 48,492 | 42,073 | |
Long-term incomes taxes payable | 67,041 | 74,930 | |
Debt | 112,784 | 376,768 | |
Total liabilities | 1,221,808 | 1,441,541 | |
Commitments and Contingencies | |||
Mezzanine equity: | |||
Convertible common shares | 2,881 | 3,787 | |
SHAREHOLDERS' EQUITY | |||
Common stock, $0.125 par value, 1,000,000 shares authorized; 163,728 and 166,123 shares issued and outstanding at October 3, 2021 and December 31, 2020, respectively | 20,466 | 20,765 | |
Additional paid-in capital | 1,800,373 | 1,765,323 | |
Accumulated other comprehensive income | 4,217 | 33,516 | |
Retained earnings | 712,437 | 387,414 | |
Total shareholders' equity | 2,537,493 | 2,207,018 | |
Total liabilities and shareholders' equity | $ 3,762,182 | $ 3,652,346 | |
[1] | The (loss) before income taxes for the nine months ended October 3, 2021 for Industrial Automation has been decreased and Corporate and Other has been increased to correctly eliminate a $10.1 million immaterial error in the three and six months ended July 4, 2021 related to intercompany charges. The error is not material to any historical periods. | ||
[2] | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Accounts receivable, less allowance for credit losses | $ 1,913 | $ 2,034 |
Common stock, par value | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 163,728 | 166,123 |
Common stock, shares outstanding | 163,728 | 166,123 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |||||
Revenues: | ||||||||
Total revenues | $ 950,501 | [1] | $ 819,484 | [1] | $ 2,817,835 | [2],[3] | $ 2,362,500 | [2] |
Cost of revenues: | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 379,500 | 360,556 | 1,138,227 | 1,026,549 | ||||
Gross profit | 571,001 | 458,928 | 1,679,608 | 1,335,951 | ||||
Operating expenses: | ||||||||
Selling and administrative | 134,829 | 115,840 | 404,812 | 340,488 | ||||
Engineering and development | 107,220 | 94,909 | 317,644 | 274,170 | ||||
Acquired intangible assets amortization | 5,355 | 6,219 | 16,293 | 25,052 | ||||
Restructuring and other | 1,197 | (27,701) | (3,426) | 1,915 | ||||
Total operating expenses | 248,601 | 189,267 | 735,323 | 641,625 | ||||
Income from operations | 322,400 | 269,661 | 944,285 | 694,326 | ||||
Non-operating (income) expense: | ||||||||
Interest income | (626) | (1,071) | (2,066) | (5,189) | ||||
Interest expense | 3,785 | 6,237 | 15,354 | 17,831 | ||||
Other (income) expense, net | 21,486 | 764 | 25,223 | 3,595 | ||||
Income before income taxes | 297,755 | 263,731 | 905,774 | 678,089 | ||||
Income tax provision | 41,037 | 41,013 | 115,225 | 90,274 | ||||
Net income | $ 256,718 | $ 222,718 | $ 790,549 | $ 587,815 | ||||
Net income per common share: | ||||||||
Basic | $ 1.56 | $ 1.34 | $ 4.77 | $ 3.54 | ||||
Diluted | $ 1.41 | $ 1.21 | $ 4.26 | $ 3.23 | ||||
Weighted average common shares—basic | 164,583 | 166,014 | 165,690 | 166,131 | ||||
Weighted average common shares—diluted | 181,987 | 184,338 | 185,492 | 181,777 | ||||
Product [Member] | ||||||||
Revenues: | ||||||||
Total revenues | $ 825,448 | $ 697,745 | $ 2,437,901 | $ 2,043,281 | ||||
Cost of revenues: | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 333,229 | 300,174 | 989,859 | 882,902 | ||||
Service [Member] | ||||||||
Revenues: | ||||||||
Total revenues | 125,053 | 121,739 | 379,934 | 319,219 | ||||
Cost of revenues: | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 46,271 | $ 60,382 | $ 148,368 | $ 143,647 | ||||
[1] | Includes $3.8 million and $1.7 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers. | |||||||
[2] | Includes $11.1 million and $6.1 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers. | |||||||
[3] | The (loss) before income taxes for the nine months ended October 3, 2021 for Industrial Automation has been decreased and Corporate and Other has been increased to correctly eliminate a $10.1 million immaterial error in the three and six months ended July 4, 2021 related to intercompany charges. The error is not material to any historical periods. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Net income | $ 256,718 | $ 222,718 | $ 790,549 | $ 587,815 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively | (10,698) | 17,104 | (26,672) | 24,131 |
Available-for-sale marketable securities: | ||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $(44), $139, $(516), and $1,410, respectively | (176) | 335 | (1,952) | 5,165 |
Less: Reclassification adjustment for gains included in net income, net of tax of $(65), $(194), $(186), $(615), respectively | (229) | (689) | (670) | (2,188) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | (405) | (354) | (2,622) | 2,977 |
Defined benefit post-retirement plan: | ||||
Amortization of prior service credit, net of tax of $0, $0, $(2), $(1), respectively | (2) | (2) | (5) | (6) |
Other comprehensive (loss) income | (11,105) | 16,748 | (29,299) | 27,102 |
Comprehensive income | $ 245,613 | $ 239,466 | $ 761,250 | $ 614,917 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Foreign currency translation adjustment, net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized (losses) gains on marketable securities arising during period | (44) | 139 | (516) | 1,410 |
Reclassification adjustment for gains included in net income | (65) | (194) | (186) | (615) |
Amortization of prior service credit, net of tax | $ 0 | $ 0 | $ (2) | $ (1) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS'' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Common Shares | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
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 | 3,163 | $ 144 | 3,019 | |||
Net issuance of common stock under stock-based plans (in shares) | 1,150 | |||||
Stock-based compensation expense | 33,683 | 33,683 | ||||
Repurchase of common stock | $ (88,465) | $ (190) | (88,275) | |||
Repurchase of common stock (in shares) | 1,500 | (1,517) | ||||
Cash dividends | $ (49,912) | (49,912) | ||||
Net income | 587,815 | 587,815 | ||||
Other comprehensive income (loss) | 27,102 | 27,102 | ||||
Balance at Sep. 27, 2020 | 1,993,544 | $ 20,755 | 1,756,831 | 8,248 | 207,710 | |
Balance, Shares at Sep. 27, 2020 | 166,043 | |||||
Balance at Jun. 28, 2020 | 1,744,551 | $ 20,725 | 1,730,716 | (8,500) | 1,610 | |
Balance, Shares at Jun. 28, 2020 | 165,806 | |||||
Net issuance of common stock under stock-based plans | 13,545 | $ 30 | 13,515 | |||
Net issuance of common stock under stock-based plans (in shares) | 237 | |||||
Stock-based compensation expense | 12,600 | 12,600 | ||||
Cash dividends | (16,618) | (16,618) | ||||
Net income | 222,718 | 222,718 | ||||
Other comprehensive income (loss) | 16,748 | 16,748 | ||||
Balance at Sep. 27, 2020 | 1,993,544 | $ 20,755 | 1,756,831 | 8,248 | 207,710 | |
Balance, Shares at Sep. 27, 2020 | 166,043 | |||||
Balance at Dec. 31, 2020 | 2,207,018 | $ 20,765 | 1,765,323 | 33,516 | 387,414 | |
Balance, Shares at Dec. 31, 2020 | 3,787 | 166,123 | ||||
Net issuance of common stock under stock-based plans | 64 | $ 112 | (48) | |||
Net issuance of common stock under stock-based plans (in shares) | 893 | |||||
Stock-based compensation expense | 35,915 | 35,915 | ||||
Repurchase of common stock | $ (416,180) | $ (411) | (415,769) | |||
Repurchase of common stock (in shares) | 3,300 | (3,288) | ||||
Cash dividends | $ (49,757) | (49,757) | ||||
Settlements of convertible notes | 841,202 | $ 897 | 840,305 | |||
Settlement of convertible debt (in shares) | 7,178 | |||||
Exercise of convertible notes hedge call options | (842,925) | $ (897) | (842,028) | |||
Exercise of convertible notes hedge call options (in shares) | (7,178) | |||||
Convertible common shares | 906 | 906 | ||||
Convertible common shares (in shares) | (906) | |||||
Net income | 790,549 | 790,549 | ||||
Other comprehensive income (loss) | (29,299) | (29,299) | ||||
Balance at Oct. 03, 2021 | 2,537,493 | $ 20,466 | 1,800,373 | 4,217 | 712,437 | |
Balance, Shares at Oct. 03, 2021 | 2,881 | 163,728 | ||||
Balance at Jul. 04, 2021 | 2,493,256 | $ 20,680 | 1,772,302 | 15,322 | 684,952 | |
Balance, Shares at Jul. 04, 2021 | 21,386 | 165,444 | ||||
Net issuance of common stock under stock-based plans | (258) | $ 1 | (259) | |||
Net issuance of common stock under stock-based plans (in shares) | 8 | |||||
Stock-based compensation expense | 10,042 | 10,042 | ||||
Repurchase of common stock | (212,996) | $ (215) | (212,781) | |||
Repurchase of common stock (in shares) | (1,724) | |||||
Cash dividends | (16,452) | (16,452) | ||||
Settlements of convertible notes | 637,497 | $ 699 | 636,798 | |||
Settlement of convertible debt (in shares) | 5,589 | |||||
Exercise of convertible notes hedge call options | (637,714) | $ (699) | (637,015) | |||
Exercise of convertible notes hedge call options (in shares) | (5,589) | |||||
Convertible common shares | 18,505 | 18,505 | ||||
Convertible common shares (in shares) | (18,505) | |||||
Net income | 256,718 | 256,718 | ||||
Other comprehensive income (loss) | (11,105) | (11,105) | ||||
Balance at Oct. 03, 2021 | $ 2,537,493 | $ 20,466 | $ 1,800,373 | $ 4,217 | $ 712,437 | |
Balance, Shares at Oct. 03, 2021 | 2,881 | 163,728 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 790,549 | $ 587,815 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||
Depreciation | 67,866 | 58,111 |
Stock-based compensation | 34,649 | 33,028 |
Amortization | 27,626 | 36,577 |
Loss on convertible debt conversion | 25,397 | |
Provision for excess and obsolete inventory | 11,775 | 13,116 |
Deferred taxes | (10,732) | (4,547) |
Contingent consideration adjustment | (7,227) | (7,967) |
Gains on investments | (4,750) | (3,515) |
Retirement plan actuarial (gains) losses | (627) | 2,589 |
Other | 243 | 750 |
Changes in operating assets and liabilities, net of businesses acquired: | ||
Accounts receivable | (103,299) | (222,015) |
Inventories | 21,943 | 16,998 |
Prepayments and other assets | (138,564) | (40,751) |
Accounts payable and other liabilities | 65,064 | 81,557 |
Deferred revenue and customer advances | 8,699 | 36,589 |
Retirement plans contributions | (4,123) | (3,884) |
Income taxes | (17,406) | 24,060 |
Net cash provided by operating activities | 767,083 | 608,511 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (103,162) | (146,872) |
Purchases of marketable securities | (509,470) | (488,428) |
Proceeds from maturities of marketable securities | 571,277 | 309,407 |
Proceeds from sales of marketable securities | 209,437 | 32,611 |
Purchase of investment and acquisition of businesses | (12,000) | 149 |
Proceeds from life insurance | 546 | |
Net cash provided by (used for) investing activities | 156,082 | (292,587) |
Cash flows from financing activities: | ||
Issuance of common stock under stock purchase and stock option plans | 32,590 | 26,528 |
Repurchase of common stock | (406,180) | (88,465) |
Payments of convertible debt principal | (301,997) | |
Dividend payments | (49,711) | (49,870) |
Payments related to net settlement of employee stock compensation awards | (32,045) | (22,735) |
Payments of contingent consideration | (8,852) | |
Net cash used for financing activities | (757,343) | (143,394) |
Effects of exchange rate changes on cash and cash equivalents | (489) | (1,274) |
Increase in cash and cash equivalents | 165,333 | 171,256 |
Cash and cash equivalents at beginning of period | 914,121 | 773,924 |
Cash and cash equivalents at end of period | 1,079,454 | 945,180 |
Non-cash investing activities: | ||
Capital expenditures incurred but not yet paid | $ 2,286 | $ 3,119 |
The Company
The Company | 9 Months Ended |
Oct. 03, 2021 | |
The Company | A. THE COMPANY Teradyne, Inc. (“Teradyne”) is a leading global supplier of automation equipment for test and industrial applications. Teradyne designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s industrial automation products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing, logistics and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automatic test equipment and industrial automation products and services include: • semiconductor test (“Semiconductor Test”) systems; • storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); • wireless test (“Wireless Test”) systems; and • industrial automation (“Industrial Automation”) products. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Oct. 03, 2021 | |
Accounting Policies | B. ACCOUNTING POLICIES Basis of Presentation The consolidated interim financial statements include th e 10-K, Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent liabilities. On an on-going COVID-19 10-Q. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Oct. 03, 2021 | |
Recently Issued Accounting Pronouncements | C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06 if-converted On November 4 2020-06, if-converted |
Investment In Other Company
Investment In Other Company | 9 Months Ended |
Oct. 03, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment In Other Company | D. INVESTMENT IN OTHER COMPANY On June |
Revenue
Revenue | 9 Months Ended |
Oct. 03, 2021 | |
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 System on-a-Chip Memory System Test Universal Mobile AutoGuide Wireless Test Corporate and Other Total (in thousands) For the Three Months Ended October 3, 2021 (1) Timing of Revenue Recognition Point in Time $ 508,747 $ 105,454 $ 88,155 $ 76,008 $ 12,351 $ 226 $ 65,409 $ (63 ) $ 856,287 Over Time 66,270 7,761 14,450 1,742 607 80 3,304 — 94,214 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 12,958 $ 306 $ 68,713 $ (63 ) $ 950,501 Geographical Market Asia Pacific $ 519,886 $ 110,362 $ 62,757 $ 19,654 $ 2,788 $ — $ 54,344 $ — $ 769,791 Americas 29,119 2,281 34,560 23,429 5,015 306 11,352 (63 ) 105,999 Europe, Middle East and Africa 26,012 572 5,288 34,667 5,155 — 3,017 — 74,711 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 12,958 $ 306 $ 68,713 $ (63 ) $ 950,501 For the Three Months Ended September 27, 2020 (1) Timing of Revenue Recognition Point in Time $ 393,717 $ 137,929 $ 101,045 $ 51,523 $ 10,175 $ 4,076 $ 37,901 $ (41 ) $ 736,325 Over Time 55,988 4,507 17,124 1,686 59 1,192 2,603 — 83,159 Total $ 449,705 $ 142,436 $ 118,169 $ 53,209 $ 10,234 $ 5,268 $ 40,504 $ (41 ) $ 819,484 Geographical Market Asia Pacific $ 420,821 $ 137,286 $ 78,534 $ 14,471 $ 1,566 $ — $ 33,865 $ — $ 686,543 Americas 17,678 3,730 35,140 16,527 3,981 5,268 5,211 (41 ) 87,494 Europe, Middle East and Africa 11,206 1,420 4,495 22,211 4,687 — 1,428 — 45,447 Total $ 449,705 $ 142,436 $ 118,169 $ 53,209 $ 10,234 $ 5,268 $ 40,504 $ (41 ) $ 819,484 For the Nine Months Ended October 3, 2021 (2) Timing of Revenue Recognition Point in Time $ 1,548,895 $ 291,578 $ 295,666 $ 214,427 $ 41,506 $ 106 $ 154,908 $ (352 ) $ 2,546,734 Over Time 188,022 21,776 44,595 5,001 1,483 628 9,596 — 271,101 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 42,989 $ 734 $ 164,504 $ (352 ) $ 2,817,835 Geographical Market Asia Pacific $ 1,618,117 $ 301,562 $ 223,507 $ 55,531 $ 8,674 $ — $ 133,678 $ — $ 2,341,069 Americas 71,562 9,373 98,475 66,390 17,065 734 24,228 (352 ) 287,475 Europe, Middle East and Africa 47,238 2,419 18,279 97,507 17,250 — 6,598 — 189,291 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 42,989 $ 734 $ 164,504 $ (352 ) $ 2,817,835 For the Nine Months Ended September 27, 2020 (2) Timing of Revenue Recognition Point in Time $ 1,261,468 $ 298,150 $ 259,498 $ 140,829 $ 30,468 $ 8,608 $ 125,304 $ (294 ) $ 2,124,031 Over Time 162,159 14,000 46,553 5,628 176 2,083 7,870 — 238,469 Total $ 1,423,627 $ 312,150 $ 306,051 $ 146,457 $ 30,644 $ 10,691 $ 133,174 $ (294 ) $ 2,362,500 Geographical Market Asia Pacific $ 1,330,463 $ 296,679 $ 197,208 $ 39,665 $ 4,391 $ — $ 113,576 $ — $ 1,981,982 Americas 51,315 11,481 91,924 42,634 9,836 10,691 15,253 (294 ) 232,840 Europe, Middle East and Africa 41,849 3,990 16,919 64,158 16,417 — 4,345 — 147,678 Total $ 1,423,627 $ 312,150 $ 306,051 $ 146,457 $ 30,644 $ 10,691 $ 133,174 $ (294 ) $ 2,362,500 (1) Includes $3.8 million and $1.7 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.” (2) Includes $11.1 million and $6.1 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “ Revenue from Contracts with Customers Contract Balances During the three and nine months ended October 3, 2021, Teradyne recognized $32.9 million and $82.5 million, respectively, that was previously included within the deferred revenue and customer advances balances at the beginning of the period. During the three and nine months ended September 27, 2020, Teradyne recognized $17.6 million and $78.2 million, respectively, that was previously 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 October 3, 2021, Teradyne has $1,293.0 million of unsatisfied performance obligations. Teradyne expects to recognize 94% of the remaining performance obligations in the next 12 months, 5% in 1-3 Accounts Receivable Teradyne sells certain trade accounts receivables on a non-recourse |
Inventories
Inventories | 9 Months Ended |
Oct. 03, 2021 | |
Inventories | F. INVENTORIES Inventories, net consisted of th e October 3, 2021 December 31, 2020 (in thousands) Raw material $ 131,807 $ 114,133 Work-in-process 34,911 25,408 Finished goods 57,524 82,648 $ 224,242 $ 222,189 Inventory reserves at October 3, 2021 and December 31, 2020 were $112.5 million and $110.6 million, respectively. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Oct. 03, 2021 | |
Financial Instruments | G. FINANCIAL INSTRUMENTS Cash Equivalents Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. Marketable Securities Teradyne’s available-for-sale During the three and nine months ended October 3, 2021 and September 27, 2020, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in the three and nine months ended October 3, 2021 were $0.5 million and $2.6 million, respectively. Realized gains recorded in the three and nine months ended September 27, 2020 were $1.1 million and $4.1 million, respectively. No realized losses were recorded in the three and nine months ended October 3, 2021. Realized losses recorded in the three and nine months ended September 27, 2020 were $0.1 million and $0.3 million, respectively. Realized gains and losses are included in other (income) expense, net. Unrealized gains on equity securities recorded in the nine months ended October 3, 2021 were $3.3 million. Unrealized losses on equity securities recorded in the three and nine months ended October 3, 2021 were $0.4 million and $1.1 million, respectively. Unrealized gains on equity securities recorded in the three and nine months ended September 27, 2020 were $2.0 million and $5.7 million, respectively. Unrealized losses on equity securities recorded in the nine months ended September 27, 2020 were $6.0 million. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale The cost of securities sold is based on average cost. The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of October 3, 2021 and December 31, 2020. October 3, 2021 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 577,752 $ — $ — $ 577,752 Cash equivalents 176,703 324,999 — 501,702 Available-for-sale Commercial paper — 179,629 — 179,629 U.S. Treasury securities — 80,519 — 80,519 Corporate debt securities — 58,648 — 58,648 Debt mutual funds 8,937 — — 8,937 U.S. government agency securities — 4,616 — 4,616 Certificates of deposit and time deposits — 1,346 — 1,346 Non-U.S. — 590 — 590 Equity securities: Mutual funds 35,776 — — 35,776 $ 799,168 $ 650,347 $ — $ 1,449,515 Derivative assets — 93 — 93 Total $ 799,168 $ 650,440 $ — $ 1,449,608 Liabilities Derivative liabilities — 433 — 433 Total $ — $ 433 $ — $ 433 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 754,455 $ 324,999 $ — $ 1,079,454 Marketable securities — 233,397 — 233,397 Long-term marketable securities 44,713 91,951 — 136,664 Prepayments and other current assets — 93 — 93 Total $ 799,168 $ 650,440 $ — $ 1,449,608 Liabilities Other current liabilities $ — $ 433 $ — $ 433 Total $ — $ 433 $ — $ 433 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 — 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. — 625 — 625 Equity securities: Equity mutual funds 29,420 — — 29,420 $ 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 accrued liabilities $ — $ 504 $ — $ 504 Long-term contingent consideration — — 7,227 7,227 Total $ — $ 504 $ 7,227 $ 7,731 Changes in the fair value of Level 3 contingent consideration for the three and nine months ended October 3, 2021 and September 27, 2020 were as follows: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Balance at beginning of period $ — $ 49,737 $ 7,227 $ 39,705 Fair value adjustment (a)(b)(c) — (27,206 ) (7,227 ) (7,967 ) Foreign currency impact — — — (355 ) Payments (d) — — — (8,852 ) Balance at end of period $ — $ 22,531 $ — $ 22,531 (a) In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. As of October 3, 2021, the maximum amount of contingent consideration that could be paid in connection with the acquisition of AutoGuide is $100.2 million. The remaining earn-out non-compliance earn-out (b) In the three and nine months ended September 27, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide decreased by $27.2 million and $4.4 million, respectively, due to lower forecasted revenues and earnings before interest and taxes. (c) In the nine months ended September 27, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of Mobile Industrial Robots (“MiR”) decreased by $3.5 million due to lower forecasted results. (d) In the nine months ended September 27, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out The carrying amounts and fair values of Teradyne’s financial instruments at October 3, 2021 and December 31, 2020 were as follows: October 3, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 1,079,454 $ 1,079,454 $ 914,121 $ 914,121 Marketable securities 370,061 370,061 640,260 640,260 Derivative assets 93 93 95 95 Liabilities Contingent consideration — — 7,227 7,227 Derivative liabilities 433 433 504 504 Convertible debt (1) 145,003 546,464 410,111 1,739,553 (1) The carrying value represents the bifurcated debt component only, while the level 2 fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. The fair values of accounts receivable, net and accounts payable approximate the carrying value due to the short-term nature of these instruments. The following table summarizes the composition of available-for-sale October 3, 2021 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Commercial paper $ 179,624 $ 5 $ — $ 179,629 $ 20,799 U.S. Treasury securities 80,370 636 (487 ) 80,519 17,336 Corporate debt securities 53,329 5,421 (102 ) 58,648 22,010 Debt mutual funds 8,872 65 — 8,937 — U.S. government agency securities 4,610 11 (5 ) 4,616 3,302 Certificates of deposit and time deposits 1,346 — — 1,346 — Non-U.S. 590 — — 590 — $ 328,741 $ 6,138 $ (594 ) $ 334,285 $ 63,447 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 233,327 $ 92 $ (22 ) $ 233,397 $ 28,773 Long-term marketable securities 95,414 6,046 (572 ) 100,888 34,674 $ 328,741 $ 6,138 $ (594 ) $ 334,285 $ 63,447 The following table summarizes the composition of available-for-sale 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. 625 — — 625 — $ 601,976 $ 9,077 $ (213 ) $ 610,840 $ 70,418 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market 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 As of October 3, 2021 and December 31, 2020, the fair market value of investments with unrealized losses less than one year totaled $57.3 million and $70.4 million, respectively. As of October 3, 2021, the fair market value of investments with unrealized losses for greater than one year totaled $6.2 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 October 3, 2021 and December 31, 2020 were not other than temporary. The contractual maturities of investments in available-for-sale October 3, 2021 Cost Fair Market Value (in thousands) Due within one year $ 233,327 $ 233,397 Due after 1 year through 5 years 46,460 46,744 Due after 5 years through 10 years 6,120 6,586 Due after 10 years 33,962 38,621 Total $ 319,869 $ 325,348 Contractual maturities of investments in available-for-sale Derivatives Teradyne conducts business in a number of foreign countries with certain transactions denominated in local currencies. The purpose of Teradyne’s foreign currency management is to minimize the effect of exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities. Teradyne does not use derivative financial instruments for trading or speculative purposes. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies. The notional amount of foreign currency forward contracts at October 3, 2021 and December 31, 2020 was $181.8 million and $152.9 million, respectively. Gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. The following table summarizes the fair value of derivative instruments as of October 3, 2021 and December 31, 2020: Balance Sheet Location October 3, December 31, (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 93 $ 95 Foreign exchange contracts Other current liabilities (433 ) (504 ) Total derivatives $ (340 ) $ (409 ) The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and nine months ended October 3, 2021 and September 27, 2020: Location of Losses (Gains) Recognized in Statement of Operations For the Three Months Ended For the Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 2,288 $ (551 ) $ 5,937 $ 3,930 (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 three and nine months ended October 3, 2021, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.0 million and $1.3 million, respectively. (3) For the three months ended September 27, 2020, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.2 million. For the nine months ended September 27, 2020, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.4 million. See Note H: “Debt” regarding derivatives related to the convertible senior notes. |
Debt
Debt | 9 Months Ended |
Oct. 03, 2021 | |
Debt | H. DEBT Convertible Senior Notes On December 12, 2016, Teradyne completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of Teradyne’s common stock under its existing stock repurchase program from purchasers of the Notes in privately negotiated transactions effected through one of the initial purchasers or its affiliates conducted concurrently with the pricing of the Note offering. The Notes will mature on December 15, 2023, unless earlier repurchased or converted. The Notes bear interest from December 12, 2016 at a rate of 1.25% per year payable semiannually in arrears on June 15 nine 4 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 $31.53. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 8.7 million shares of Teradyne’s common stock. Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne’s common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne’s common stock exceeds the applicable strike price of the warrant. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. Teradyne considered the guidance of ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” fixed-for-fixed Teradyne assessed whether the convertible note hedge should be classified as equity under ASC 815-40. 815-40 Teradyne analyzed the Warrant Transactions under ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” paid-in The provisions of ASC 470-20, Debt with Conversion and Other Options, 470-20 The below tables represent the key components of Teradyne’s convertible senior notes: October 3, 2021 December 31, (in thousands) Debt principal $ 157,972 $ 459,971 Unamortized discount 12,969 49,860 Net Carrying amount of convertible debt $ 145,003 $ 410,111 Reported as follows: October 3, 2021 December 31, (in thousands) Current debt $ 32,219 $ 33,343 Long-term debt 112,784 376,768 Net carrying amount of convertible debt $ 145,003 $ 410,111 For the Three Months Ended For the Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 (in thousands) Contractual interest expense on the coupon $ 355 $ 1,438 $ 2,666 $ 4,313 Amortization of the discount component and debt issue fees recognized as interest expense 2,424 3,887 9,771 11,518 Total interest expense on the convertible debt $ 2,779 $ 5,325 $ 12,437 $ 15,831 As of October 3, 2021, the remaining unamortized discount was $13.0 million, which will be amortized over 2.3 years using the effective interest rate method. The carrying amount of the equity component was $100.8 million. As of October 3, 2021, the conversion price was approximately $31.53 per share and the if-converted During the three and nine months ended October 3, 2021, certain debt holders elected to convert $235.2 million and $302.0 million, respectively, of debt principal. The conversions in the three and nine months ended October 3, 2021 resulted in a loss of $20.2 million and $25.4 million, respectively, recorded to other (income) expense, net in the consolidated statement of operations. The conversion of the debt was settled in cash for principal amount and in shares for the excess of conversion value over principal amount. The 7.2 million shares issued to the debt holders were received from exercising the convertible notes hedge call options. Additional conversions of approximately $41.0 million of debt principal will occur in the fourth quarter of 2021. The liability component is included in current debt and the equity component is included in convertible common shares. Revolving Credit Facility On May 1, 2020, Teradyne entered into a credit agreement (the “Credit Agreement”) with Truist Bank, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provides for a three-year, senior secured revolving credit facility of $400.0 million (the “Credit Facility”). The Credit Agreement further provides that, subject to customary conditions, Teradyne may seek to obtain from existing or new lenders incremental commitments under the Credit Facility in an aggregate principal amount not to exceed $150.0 million. Proceeds from the Credit Facility may be used for general corporate purposes and working capital. Teradyne incurred $3.5 million in costs related to the revolving credit facility. These costs are being amortized over the three-year term of the revolving credit facility and are included in interest expense in the statement of operations. As of November 5, 2021, Teradyne has not borrowed any funds under the Credit Facility. The interest rates applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.50% 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 November 5, 2021, Teradyne was in compliance with all covenants. |
Prepayments
Prepayments | 9 Months Ended |
Oct. 03, 2021 | |
Prepayments [Abstract] | |
Prepayments | I. PREPAYMENTS Prepayments consist of the following and are included in prepayments and other assets on the balance sheet: October 3, December 31, (in thousands) Contract manufacturer and supplier prepayments $ 334,660 $ 212,286 Prepaid maintenance and other services 13,574 13,116 Prepaid taxes 13,822 9,361 Other prepayments 12,093 15,329 Total prepayments $ 374,149 $ 250,092 |
Deferred Revenue and Customer A
Deferred Revenue and Customer Advances | 9 Months Ended |
Oct. 03, 2021 | |
Deferred Revenue and Customer Advances | J. DEFERRED REVENUE AND CUSTOMER ADVANCES Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet: October 3, December 31, (in thousands) Maintenance, service and training $ 83,046 $ 77,654 Extended warranty 67,482 51,929 Customer advances, undelivered elements and other 49,874 63,438 Total deferred revenue and customer advances $ 200,402 $ 193,021 |
Product Warranty
Product Warranty | 9 Months Ended |
Oct. 03, 2021 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | K. PRODUCT WARRANTY Teradyne generally provides a one-year For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Balance at beginning of period $ 25,676 $ 13,016 $ 16,633 $ 8,996 Accruals for warranties issued during the period 6,641 8,255 28,719 19,522 Accruals related to pre-existing (963 ) 158 (3,966 ) 1,569 Settlements made during the period (5,233 ) (6,272 ) (15,265 ) (14,930 ) Balance at end of period $ 26,121 $ 15,157 $ 26,121 $ 15,157 When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances. For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Balance at beginning of period $ 63,525 $ 40,178 $ 51,929 $ 30,677 Deferral of new extended warranty revenue 12,728 13,674 36,533 32,724 Recognition of extended warranty deferred revenue (8,771 ) (5,149 ) (20,980 ) (14,698 ) Balance at end of period $ 67,482 $ 48,703 $ 67,482 $ 48,703 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 03, 2021 | |
Stock-Based Compensation | L. STOCK-BASED COMPENSATION Under Teradyne’s stock compensation plans, Teradyne grants service-based restricted stock units, performance-based restricted stock units and stock options, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Service-based restricted stock unit awards granted to employees vest in equal annual installments over four years. Restricted stock unit awards granted to non-employee one-year Performance-based restricted stock units (“PRSUs”) granted to Teradyne’s executive officers may have a performance metric based on relative total shareholder return (“TSR”). Teradyne’s three-year TSR performance is measured against the New York Stock Exchange (“NYSE”) Composite Index. The final number of TSR PRSUs that vest will vary based upon the level of performance achieved from 0% to 200% of the target shares. The TSR PRSUs will vest upon the three-year anniversary of the grant date. The TSR PRSUs are valued using a Monte Carlo simulation model. The number of units expected to be earned, based upon the achievement of the TSR market condition, is factored into the grant date Monte Carlo valuation. Compensation expense is recognized on a straight-line basis over the shorter of the three-year service period or the period from the grant to the date described in the retirement provisions below. Compensation expense for executive officers meeting the retirement provisions prior to the grant date is recognized during the year following the grant. Compensation expense is recognized regardless of the eventual number of units that are earned based upon the market condition, provided the executive officer remains an employee at the end of the three-year period. Compensation expense is reversed if at any time during the three-year service period the executive officer is no longer an employee, subject to the retirement and termination eligibility provisions noted below. PRSUs granted to Teradyne’s executive officers may also have a performance metric based on three-year cumulative non-GAAP Non-GAAP non-cash non-recurring If a PRSU recipient’s employment ends prior to the determination of the performance percentage due to (1) permanent disability or death or (2) retirement or termination other than for cause, after attaining both at least age sixty Stock options to purchase Teradyne’s common stock at 100% of the fair market value on the grant date vest in equal annual installments over four years from the grant date and have a maximum term of seven years. During the nine months ended October 3, 2021 and September 27, 2020, Teradyne granted 0.3 million and 0.4 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $113.76 and $70.76, respectively, and 0.1 million of service-based restricted stock unit awards to non-employee During the nine months ended October 3, 2021 and September 27, 2020, Teradyne granted 0.1 million of PBIT PRSUs with a grant date fair value of $113.65 and $70.94, respectively. During the nine months ended October 3, 2021 and September 27, 2020, Teradyne granted 0.1 million of TSR PRSUs, with a grant date fair value of $125.02 and $89.93, respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: For the Nine Months Ended October 3, September 27, Risk-free interest rate 0.2% 1.5% Teradyne volatility-historical 43.9% 34.9% NYSE Composite Index volatility-historical 22.9% 11.4% Dividend yield 0.4% 0.6% Expected volatility was based on the historical volatility of Teradyne’s stock and the NYSE Composite Index over the most recent three-year period. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.40 per share divided by Teradyne’s stock price on the grant date of $113.48 for the 2021 grant and an estimated annual dividend amount of $0.40 per share divided by Teradyne’s stock price on the grant date of $72.10 for the 2020 grant. During the nine months ended October 3, 2021 and September 27, 2020, Teradyne granted 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $36.60 and $20.67, respectively. The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Nine Months Ended October 3, September 27, Expected life (years) 5.0 5.0 Risk-free interest rate 0.4% 1.6% Volatility-historical 37.8% 31.6% Dividend yield 0.4% 0.6% 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 $113.48 for the 2021 grant and an estimated annual dividend amount of $0.40 per share divided by Teradyne’s stock price on the grant date of $72.10 for the 2020 grant. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Oct. 03, 2021 | |
Accumulated Other Comprehensive Income | M. ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in accumulated other comprehensive income, which are presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Retirement Plans Service Credit Total (in thousands) Nine Months Ended October 3, 2021 Balance at December 31, 2020, net of tax of $0, $1,910, $(1,126), respectively $ 25,389 $ 6,954 $ 1,173 $ 33,516 Other comprehensive loss before reclassifications, net of tax of $0, $(516), $0, respectively (26,672 ) (1,952 ) — (28,624 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(186), $(2), respectively — (670 ) (5 ) (675 ) Net current period other comprehensive loss, net of tax of $0 , $(702), $ (26,672 ) (2,622 ) (5 ) (29,299 ) Balance at October 3, 2021, net of tax of $0, $1,208, $(1,128), respectively $ (1,283 ) $ 4,332 $ 1,168 $ 4,217 Nine Months Ended September 27, 2020 Balance at December 31, 2019, net of tax of $0, $946, $(1,124), respectively $ (23,514 ) $ 3,480 $ 1,180 $ (18,854 ) Other comprehensive income before reclassifications, net of tax of $0, $1,410, $0, respectively 24,131 5,165 — 29,296 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(615), $ (1 — (2,188 ) (6 ) (2,194 ) Net current period other comprehensive income (loss), net of tax of $0, $795, $(1), respectively 24,131 2,977 (6 ) 27,102 Balance at September 27, 2020, net of tax of $0, $1,741, $(1,125), respectively $ 617 $ 6,457 $ 1,174 $ 8,248 Reclassifications out of accumulated other comprehensive income to the statement of operations for the three and nine months ended October 3, 2021 and September 27, 2020 were as follows: Details about Accumulated Other Comprehensive Income Components For the Three Months Ended For the Nine Months Ended Affected Line Item in the Statements of Operations October 3, September 27, October 3, September 27, (in thousands) Available-for-sale Unrealized gains, net of tax of $65, $194, $186, $615, respectively $ 229 $ 689 $ 670 $ 2,188 Other (income) Defined benefit postretirement plan: Amortization of prior service credit, net of tax of $0, $0, $2, $1, respectively 2 2 5 6 (a) Total reclassifications, net of tax of $65, $194, $188, $616, respectively $ 231 $ 691 $ 675 $ 2,194 Net income (a) The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note Q: “Retirement Plans.” |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 9 Months Ended |
Oct. 03, 2021 | |
Goodwill and Intangible Assets | N. GOODWILL AND ACQUIRED INTANGIBLE ASSETS Goodwill Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “Intangibles—Goodwill and Other” The changes in the carrying amount of goodwill by reportable segments for the nine months ended October 3, 2021, were as follows: Industrial Automation System Wireless Semiconductor Total (in thousands) Balance at December 31, 2020 Goodwill $ 433,752 $ 158,699 $ 361,819 $ 262,155 $ 1,216,425 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 433,752 10,516 7,976 1,615 453,859 Foreign currency translation adjustment (20,373 ) — — (88 ) (20,461 ) Balance at October 3, 2021 Goodwill 413,379 158,699 361,819 262,067 1,195,964 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) $ 413,379 $ 10,516 $ 7,976 $ 1,527 $ 433,398 Intangible Assets Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: Gross Carrying Amount Accumulated Amortization Foreign Currency Net Carrying Amount Balance at October 3, 2021 (in thousands) Developed technology $ 272,547 $ (220,147 ) $ (3,489 ) $ 48,911 Customer relationships 57,739 (48,351 ) 174 9,562 Tradenames and trademarks 70,120 (46,643 ) (273 ) 23,204 Total intangible assets $ 400,406 $ (315,141 ) $ (3,588 ) $ 81,677 Balance, December 31, 2020 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 Aggregate intangible asset amortization expense was $5.4 million and $16.3 million, respectively, for the three and nine months ended October 3, 2021 and $6.2 million and $25.1 million, respectively, for the three and nine months ended September 27, 2020. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2021 (remainder) $ 5,199 2022 20,299 2023 19,815 2024 19,507 2025 11,645 Thereafter 5,212 |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Oct. 03, 2021 | |
Net Income per Common Share | O. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 256,718 $ 222,718 $ 790,549 $ 587,815 Weighted average common shares-basic 164,583 166,014 165,690 166,131 Effect of dilutive potential common shares: Convertible note hedge warrant shares (1) 9,819 7,775 9,774 6,364 Incremental shares from assumed conversion of convertible notes (2) 6,464 9,156 8,784 8,029 Restricted stock units 1,035 1,237 1,147 1,104 Stock options 73 141 87 136 Employee stock purchase plan 13 15 10 13 Dilutive potential common shares 17,404 18,324 19,802 15,646 Weighted average common shares-diluted 181,987 184,338 185,492 181,777 Net income per common share-basic $ 1.56 $ 1.34 $ 4.77 $ 3.54 Net income per common share-diluted $ 1.41 $ 1.21 $ 4.26 $ 3.23 (1) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.56 and $39.58, multiplied by million shares and 14.6 million shares for the three and nine months ended October 3, 2021, respectively. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. (2) Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.53 and $31.54, multiplied by million shares and 11.7 million shares, for the three and nine months ended October 3, 2021, respectively. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. The computation of diluted net income per common share for the three and nine months ended October 3, 2021 excludes the effect of the potential vesting of 0.1 million and 0.1 million, respectively, of restricted stock units because the effect would have been anti-dilutive. The computation of diluted net income per common share for the three and nine months ended September 27, 2020 excludes the effect of the potential vesting of 0.1 million and 0.2 million, respectively, of restricted stock units because the effect would have been anti-dilutive. |
Restructuring and Other
Restructuring and Other | 9 Months Ended |
Oct. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | P. RESTRUCTURING AND OTHER During the three months ended October 3, 2021, Teradyne recorded $0.6 million of severance charges primarily in Industrial Automation, $0.3 million of acquisition related compensation expenses and $0.3 million for other expenses. During the three months ended September 27, 2020, Teradyne recorded a $27.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability, 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. During the nine months ended October 3, 2021, Teradyne recorded a gain of $7.2 million for the decrease in the fair value of the AutoGuide contingent consideration liability, partially offset by a charge of $1.7 million for an increase in environmental and legal liabilities, $1.2 million of severance charges primarily in Industrial Automation, $0.6 million for other expenses and $0.3 million of acquisition related compensation expenses. During the nine months ended September 27, 2020, Teradyne recorded a $4.0 million contract termination settlement charge, $3.4 million of acquisition related compensation and expenses, $1.2 million of severance charges primarily in Industrial Automation, and $1.2 million of other expenses, partially offset by a $4.4 million gain for the decrease in the fair value of the AutoGuide contingent consideration liabilities, and a $3.5 million gain for the decrease in the fair value of the MiR contingent consideration liability. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Oct. 03, 2021 | |
Retirement Plans | Q. RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits” Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. In the nine months ended October 3, 2021, and September 27, 2020, Teradyne contributed $2.5 million and $2.2 million, respectively, to the U.S. supplemental executive defined benefit pension plan and $0.8 million and $0.7 million, respectively, to certain qualified pension plans for non-U.S. For the three and nine months ended October 3, 2021 and September 27, 2020, Teradyne’s net periodic pension cost was comprised of the following components: For the Three Months Ended October 3, 2021 September 27, 2020 United States Foreign United States Foreign (in thousands) Service cost $ 452 $ 240 $ 417 $ 216 Interest cost 1,098 86 1,460 123 Expected return on plan assets (936 ) (17 ) (1,170 ) (16 ) Net actuarial loss — — 2,238 — Settlement loss — — 450 — Total net periodic pension cost $ 614 $ 309 $ 3,395 $ 323 For the Nine Months Ended October 3, 2021 September 27, 2020 United States Foreign United States Foreign (in thousands) Service cost $ 1,357 $ 720 $ 1,283 $ 648 Interest cost 3,295 257 4,505 369 Expected return on plan assets (2,809 ) (50 ) (3,634 ) (47 ) Net actuarial (gain) loss (400 ) — 2,418 — Settlement loss — — 450 — Total net periodic pension cost $ 1,443 $ 927 $ 5,022 $ 970 The net periodic pension cost components other than service cost were recorded in other (income) expense, net in the statement of operations. Postretirement Benefit Plan In addition to receiving pension benefits, Teradyne employees in the United States who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees. For the three and nine months ended October 3, 2021 and September 27, 2020, Teradyne’s net periodic postretirement benefit cost (credit) was comprised of the following components: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Service cost $ 16 $ 14 $ 48 $ 43 Interest cost 43 60 128 180 Amortization of prior service credit (2 ) (2 ) (7 ) (7 ) Net actuarial gain — — (228 ) (279 ) Total net periodic postretirement benefit cost (credit) $ 57 $ 72 $ (59 ) $ (63 ) The net periodic postretirement benefit cost (credit) components other than service cost were recorded in other (income) expense, net in the statement of operations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 03, 2021 | |
Commitments and Contingencies | R. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of October 3, 2021, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $811.9 million, of which $777.8 million is for less than one year. Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. On March 8, 2021, Industrial Automation LLC submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the “Purchase Agreement”), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand seeks full acceleration of the maximum earnout amount payable under the Purchase Agreement, or $106.9 million, for the alleged breach of the earnout provisions of the Purchase Agreement. On March 26, 2021, Teradyne and AutoGuide filed an answer denying that Teradyne and AutoGuide breached any provisions of the Purchase Agreement. The arbitration hearing is scheduled for March 21, 2022. While it is not possible at this stage to predict the outcome of the arbitration, Teradyne and AutoGuide intend to vigorously defend against the Industrial Automation LLC claims. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2021 | |
Income Taxes | S. INCOME TAXES A reconciliation of the United States federal statutory corporate tax rate to Teradyne’s effective tax rate was as follows: For the Three Ended For the Nine Months Ended October 3, September 27, October 3, September 27, U.S. statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Foreign taxes (4.4 ) (6.9 ) (4.4 ) (5.8 ) Tax credits (1.9 ) (1.6 ) (1.4 ) (1.6 ) International provisions of the U.S. Tax Cuts and Jobs Act of 2017 (1.5 ) 3.0 (1.6 ) 0.5 Discrete benefit related to equity compensation (0.1 ) (0.4 ) (1.6 ) (1.4 ) Other, net 0.7 0.5 0.7 0.6 Effective tax rate 13.8 % 15.6 % 12.7 % 13.3 % On a quarterly basis, Teradyne evaluates the realizability of the deferred tax assets by jurisdiction and assesses the need for a valuation allowance. As of October 3, 2021, Teradyne believes that it will ultimately realize the deferred tax assets recorded on the condensed consolidated balance sheet. However, should Teradyne believe that it is more-likely-than-not As of October 3, 2021, and December 31, 2020, Teradyne had $16.8 million and $17.9 million, respectively, of reserves for uncertain tax positions. The $1.1 million net decrease in reserves for uncertain tax positions is primarily related to U.S. state research and development credits generated in prior years, as well as U.S. federal research and development credits generated in the current year. As of October 3, 2021, 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 because of a lapse of statutes of limitation. The estimated decrease relates to loss carryforwards, research credits and U.S. manufacturing activities deductions. Teradyne recognizes interest and penalties related to income tax matters in income tax expense. As of October 3, 2021, and December 31, 2020, $1.5 million and $1.2 million, respectively, of interest and penalties were accrued for uncertain tax positions. For the nine months ended October 3, 2021 and September 27, 2020, expense of $0.3 million and $0.0 million, respectively, was recorded for interest and penalties related to income tax items. Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings due to the tax holiday for the nine months ended October 3, 2021 was $23.9 million, or $0.13 per diluted share. The tax savings due to the tax holiday for the nine months ended September 27, 2020 was $24.9 million, or $0.14 per diluted share. In November 2020, Teradyne entered into an agreement with the Singapore Economic Development Board which extended its Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | T. SEGMENT INFORMATION Teradyne has four reportable segments (Semiconductor Test, System Test, Industrial Automation and Wireless Test). Each of the reportable segments is also an individual operating segment. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The System Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace instrumentation test, storage and system level test, and circuit-board test. The Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. Each operating segment has a segment manager who is directly accountable to and maintains regular contact with Teradyne’s chief operating decision maker (Teradyne’s chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment. Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments in effect are described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K Segment information for th e Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Other Consolidated (in thousands) Three Months Ended October 3, 2021 Revenues $ 688,232 $ 102,605 $ 91,014 $ 68,713 $ (63 ) $ 950,501 Income (loss) before income taxes (1)(2) 265,017 31,773 (4,226 ) 31,726 (26,535 ) 297,755 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 Three Months Ended September 27, 2020 Revenues $ 592,141 $ 118,169 $ 68,711 $ 40,504 $ (41 ) $ 819,484 Income (loss) before income taxes (1)(2) 189,116 47,368 (5,302 ) 10,938 21,611 263,731 Total assets (3) 1,069,830 155,642 667,132 108,671 1,435,237 3,436,512 Nine Months Ended October 3, 2021 (4) Revenues $ 2,050,271 $ 340,261 $ 263,151 $ 164,504 $ (352 ) $ 2,817,835 Income (loss) before income taxes (1)(2) 778,687 116,788 (14,586 ) 63,810 (38,925 ) 905,774 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 Nine Months Ended September 27, 2020 Revenues $ 1,735,777 $ 306,051 $ 187,792 $ 133,174 $ (294 ) $ 2,362,500 Income (loss) before income taxes (1)(2) 571,719 114,968 (32,041 ) 35,640 (12,197 ) 678,089 Total assets (3) 1,069,830 155,642 667,132 108,671 1,435,237 3,436,512 (1) Included in Corporate and Other are: contingent consideration adjustments, loss on convertible debt conversions, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations and acquisition related: (a) charges; (b) legal fees; (c) compensation. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, loss on convertible debt conversions 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. (4) The (loss) before income taxes for the nine months ended October 3, 2021 for Industrial Automation has been decreased and Corporate and Other has been increased to correctly eliminate a $10.1 million immaterial error in the three and six months ended July 4, 2021 related to intercompany charges. The error is not material to any historical periods. Included in each segment are charges and credits in the following line items in the statements of operations: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 3,725 $ 1,131 $ 4,959 $ 7,956 Restructuring and other—Contract termination settlement charge — — — 4,000 Industrial Automation: Cost of revenues—inventory charge $ 3,656 $ — $ 4,941 $ 505 Restructuring and other—employee severance 476 — 965 664 Restructuring and other—acquisition related expenses and compensation — — 825 790 Wireless: Cost of revenues—inventory charge $ 679 $ 1,802 $ 1,351 $ 3,957 System Test: Cost of revenues—inventory charge $ — $ — $ 524 $ 698 Corporate and Other: Other (income) expense, net—loss on convertible debt conversion $ 20,153 $ — $ 25,397 $ — Restructuring and other—other — — 1,846 — Restructuring and other—AutoGuide contingent consideration adjustment — (27,206 ) (7,227 ) (4,421 ) Restructuring and other—acquisition related expenses and compensation — (1,086 ) (513 ) 2,629 Restructuring and other—MiR contingent consideration adjustment — — — (3,546 ) |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | U. SHAREHOLDERS’ EQUITY Stock Repurchase Program 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. During the nine months ended October 3, 2021, Teradyne repurchased 3.3 million shares of common stock for $406.2 million at an average price of $123.53 per share. During the nine months ended September 27, 2020, Teradyne repurchased 1.5 million shares of common stock for $88.5 million at an average price of $58.33 per share. The total price includes commissions and is recorded as a reduction to retained earnings. Dividend Holders of Teradyne’s common stock are entitled to receive dividends when they are declared by Teradyne’s Board of Directors. In January 2021, May 2021 and August 2021, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.10 per share. Dividend payments for the three and nine months ended October 3, 2021 were $16.4 million and $49.7 million, respectively. In January 2020, May 2020 and August 2020, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.10 per share. Dividend payments for the three and nine months ended September 27, 2020 were $16.6 million and $49.9 million, respectively. While Teradyne declared a quarterly cash dividend and authorized a share repurchase program, it may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of Teradyne’s Board of Directors, which will consider, among other things, Teradyne’s earnings, capital requirements and financial condition. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Oct. 03, 2021 | |
Basis of Presentation | Basis of Presentation The consolidated interim financial statements include th e 10-K, |
Preparation of Financial Statements and Use of Estimates | Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent liabilities. On an on-going COVID-19 10-Q. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
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 System on-a-Chip Memory System Test Universal Mobile AutoGuide Wireless Test Corporate and Other Total (in thousands) For the Three Months Ended October 3, 2021 (1) Timing of Revenue Recognition Point in Time $ 508,747 $ 105,454 $ 88,155 $ 76,008 $ 12,351 $ 226 $ 65,409 $ (63 ) $ 856,287 Over Time 66,270 7,761 14,450 1,742 607 80 3,304 — 94,214 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 12,958 $ 306 $ 68,713 $ (63 ) $ 950,501 Geographical Market Asia Pacific $ 519,886 $ 110,362 $ 62,757 $ 19,654 $ 2,788 $ — $ 54,344 $ — $ 769,791 Americas 29,119 2,281 34,560 23,429 5,015 306 11,352 (63 ) 105,999 Europe, Middle East and Africa 26,012 572 5,288 34,667 5,155 — 3,017 — 74,711 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 12,958 $ 306 $ 68,713 $ (63 ) $ 950,501 For the Three Months Ended September 27, 2020 (1) Timing of Revenue Recognition Point in Time $ 393,717 $ 137,929 $ 101,045 $ 51,523 $ 10,175 $ 4,076 $ 37,901 $ (41 ) $ 736,325 Over Time 55,988 4,507 17,124 1,686 59 1,192 2,603 — 83,159 Total $ 449,705 $ 142,436 $ 118,169 $ 53,209 $ 10,234 $ 5,268 $ 40,504 $ (41 ) $ 819,484 Geographical Market Asia Pacific $ 420,821 $ 137,286 $ 78,534 $ 14,471 $ 1,566 $ — $ 33,865 $ — $ 686,543 Americas 17,678 3,730 35,140 16,527 3,981 5,268 5,211 (41 ) 87,494 Europe, Middle East and Africa 11,206 1,420 4,495 22,211 4,687 — 1,428 — 45,447 Total $ 449,705 $ 142,436 $ 118,169 $ 53,209 $ 10,234 $ 5,268 $ 40,504 $ (41 ) $ 819,484 For the Nine Months Ended October 3, 2021 (2) Timing of Revenue Recognition Point in Time $ 1,548,895 $ 291,578 $ 295,666 $ 214,427 $ 41,506 $ 106 $ 154,908 $ (352 ) $ 2,546,734 Over Time 188,022 21,776 44,595 5,001 1,483 628 9,596 — 271,101 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 42,989 $ 734 $ 164,504 $ (352 ) $ 2,817,835 Geographical Market Asia Pacific $ 1,618,117 $ 301,562 $ 223,507 $ 55,531 $ 8,674 $ — $ 133,678 $ — $ 2,341,069 Americas 71,562 9,373 98,475 66,390 17,065 734 24,228 (352 ) 287,475 Europe, Middle East and Africa 47,238 2,419 18,279 97,507 17,250 — 6,598 — 189,291 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 42,989 $ 734 $ 164,504 $ (352 ) $ 2,817,835 For the Nine Months Ended September 27, 2020 (2) Timing of Revenue Recognition Point in Time $ 1,261,468 $ 298,150 $ 259,498 $ 140,829 $ 30,468 $ 8,608 $ 125,304 $ (294 ) $ 2,124,031 Over Time 162,159 14,000 46,553 5,628 176 2,083 7,870 — 238,469 Total $ 1,423,627 $ 312,150 $ 306,051 $ 146,457 $ 30,644 $ 10,691 $ 133,174 $ (294 ) $ 2,362,500 Geographical Market Asia Pacific $ 1,330,463 $ 296,679 $ 197,208 $ 39,665 $ 4,391 $ — $ 113,576 $ — $ 1,981,982 Americas 51,315 11,481 91,924 42,634 9,836 10,691 15,253 (294 ) 232,840 Europe, Middle East and Africa 41,849 3,990 16,919 64,158 16,417 — 4,345 — 147,678 Total $ 1,423,627 $ 312,150 $ 306,051 $ 146,457 $ 30,644 $ 10,691 $ 133,174 $ (294 ) $ 2,362,500 (1) Includes $3.8 million and $1.7 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.” (2) Includes $11.1 million and $6.1 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “ Revenue from Contracts with Customers |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Composition of Inventories, Net | Inventories, net consisted of th e October 3, 2021 December 31, 2020 (in thousands) Raw material $ 131,807 $ 114,133 Work-in-process 34,911 25,408 Finished goods 57,524 82,648 $ 224,242 $ 222,189 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of October 3, 2021 and December 31, 2020. October 3, 2021 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 577,752 $ — $ — $ 577,752 Cash equivalents 176,703 324,999 — 501,702 Available-for-sale Commercial paper — 179,629 — 179,629 U.S. Treasury securities — 80,519 — 80,519 Corporate debt securities — 58,648 — 58,648 Debt mutual funds 8,937 — — 8,937 U.S. government agency securities — 4,616 — 4,616 Certificates of deposit and time deposits — 1,346 — 1,346 Non-U.S. — 590 — 590 Equity securities: Mutual funds 35,776 — — 35,776 $ 799,168 $ 650,347 $ — $ 1,449,515 Derivative assets — 93 — 93 Total $ 799,168 $ 650,440 $ — $ 1,449,608 Liabilities Derivative liabilities — 433 — 433 Total $ — $ 433 $ — $ 433 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 754,455 $ 324,999 $ — $ 1,079,454 Marketable securities — 233,397 — 233,397 Long-term marketable securities 44,713 91,951 — 136,664 Prepayments and other current assets — 93 — 93 Total $ 799,168 $ 650,440 $ — $ 1,449,608 Liabilities Other current liabilities $ — $ 433 $ — $ 433 Total $ — $ 433 $ — $ 433 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 — 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. — 625 — 625 Equity securities: Equity mutual funds 29,420 — — 29,420 $ 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 accrued liabilities $ — $ 504 $ — $ 504 Long-term contingent consideration — — 7,227 7,227 Total $ — $ 504 $ 7,227 $ 7,731 |
Schedule of Changes in Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration for the three and nine months ended October 3, 2021 and September 27, 2020 were as follows: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Balance at beginning of period $ — $ 49,737 $ 7,227 $ 39,705 Fair value adjustment (a)(b)(c) — (27,206 ) (7,227 ) (7,967 ) Foreign currency impact — — — (355 ) Payments (d) — — — (8,852 ) Balance at end of period $ — $ 22,531 $ — $ 22,531 (a) In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. As of October 3, 2021, the maximum amount of contingent consideration that could be paid in connection with the acquisition of AutoGuide is $100.2 million. The remaining earn-out non-compliance earn-out (b) In the three and nine months ended September 27, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide decreased by $27.2 million and $4.4 million, respectively, due to lower forecasted revenues and earnings before interest and taxes. (c) In the nine months ended September 27, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of Mobile Industrial Robots (“MiR”) decreased by $3.5 million due to lower forecasted results. (d) In the nine months ended September 27, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at October 3, 2021 and December 31, 2020 were as follows: October 3, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 1,079,454 $ 1,079,454 $ 914,121 $ 914,121 Marketable securities 370,061 370,061 640,260 640,260 Derivative assets 93 93 95 95 Liabilities Contingent consideration — — 7,227 7,227 Derivative liabilities 433 433 504 504 Convertible debt (1) 145,003 546,464 410,111 1,739,553 (1) The carrying value represents the bifurcated debt component only, while the level 2 fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. |
Schedule of Available-for-Sale Marketable Securities | The following table summarizes the composition of available-for-sale October 3, 2021 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Commercial paper $ 179,624 $ 5 $ — $ 179,629 $ 20,799 U.S. Treasury securities 80,370 636 (487 ) 80,519 17,336 Corporate debt securities 53,329 5,421 (102 ) 58,648 22,010 Debt mutual funds 8,872 65 — 8,937 — U.S. government agency securities 4,610 11 (5 ) 4,616 3,302 Certificates of deposit and time deposits 1,346 — — 1,346 — Non-U.S. 590 — — 590 — $ 328,741 $ 6,138 $ (594 ) $ 334,285 $ 63,447 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 233,327 $ 92 $ (22 ) $ 233,397 $ 28,773 Long-term marketable securities 95,414 6,046 (572 ) 100,888 34,674 $ 328,741 $ 6,138 $ (594 ) $ 334,285 $ 63,447 The following table summarizes the composition of available-for-sale 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. 625 — — 625 — $ 601,976 $ 9,077 $ (213 ) $ 610,840 $ 70,418 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market 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 |
Contractual Maturities of Investments Held | The contractual maturities of investments in available-for-sale October 3, 2021 Cost Fair Market Value (in thousands) Due within one year $ 233,327 $ 233,397 Due after 1 year through 5 years 46,460 46,744 Due after 5 years through 10 years 6,120 6,586 Due after 10 years 33,962 38,621 Total $ 319,869 $ 325,348 |
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of October 3, 2021 and December 31, 2020: Balance Sheet Location October 3, December 31, (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 93 $ 95 Foreign exchange contracts Other current liabilities (433 ) (504 ) Total derivatives $ (340 ) $ (409 ) |
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and nine months ended October 3, 2021 and September 27, 2020: Location of Losses (Gains) Recognized in Statement of Operations For the Three Months Ended For the Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 2,288 $ (551 ) $ 5,937 $ 3,930 (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 three and nine months ended October 3, 2021, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.0 million and $1.3 million, respectively. (3) For the three months ended September 27, 2020, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.2 million. For the nine months ended September 27, 2020, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.4 million. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Components of Convertible Senior Notes | The below tables represent the key components of Teradyne’s convertible senior notes: October 3, 2021 December 31, (in thousands) Debt principal $ 157,972 $ 459,971 Unamortized discount 12,969 49,860 Net Carrying amount of convertible debt $ 145,003 $ 410,111 Reported as follows: October 3, 2021 December 31, (in thousands) Current debt $ 32,219 $ 33,343 Long-term debt 112,784 376,768 Net carrying amount of convertible debt $ 145,003 $ 410,111 For the Three Months Ended For the Nine Months Ended October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 (in thousands) Contractual interest expense on the coupon $ 355 $ 1,438 $ 2,666 $ 4,313 Amortization of the discount component and debt issue fees recognized as interest expense 2,424 3,887 9,771 11,518 Total interest expense on the convertible debt $ 2,779 $ 5,325 $ 12,437 $ 15,831 |
Prepayments (Tables)
Prepayments (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Prepayments [Abstract] | |
Schedule of Prepayments and other assets | Prepayments consist of the following and are included in prepayments and other assets on the balance sheet: October 3, December 31, (in thousands) Contract manufacturer and supplier prepayments $ 334,660 $ 212,286 Prepaid maintenance and other services 13,574 13,116 Prepaid taxes 13,822 9,361 Other prepayments 12,093 15,329 Total prepayments $ 374,149 $ 250,092 |
Deferred Revenue and Customer_2
Deferred Revenue and Customer Advances (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue and Customer Advances | Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet: October 3, December 31, (in thousands) Maintenance, service and training $ 83,046 $ 77,654 Extended warranty 67,482 51,929 Customer advances, undelivered elements and other 49,874 63,438 Total deferred revenue and customer advances $ 200,402 $ 193,021 |
Product Warranty (Tables)
Product Warranty (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Other Accrued Liabilities | Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities. For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Balance at beginning of period $ 25,676 $ 13,016 $ 16,633 $ 8,996 Accruals for warranties issued during the period 6,641 8,255 28,719 19,522 Accruals related to pre-existing (963 ) 158 (3,966 ) 1,569 Settlements made during the period (5,233 ) (6,272 ) (15,265 ) (14,930 ) Balance at end of period $ 26,121 $ 15,157 $ 26,121 $ 15,157 |
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances | Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances. For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Balance at beginning of period $ 63,525 $ 40,178 $ 51,929 $ 30,677 Deferral of new extended warranty revenue 12,728 13,674 36,533 32,724 Recognition of extended warranty deferred revenue (8,771 ) (5,149 ) (20,980 ) (14,698 ) Balance at end of period $ 67,482 $ 48,703 $ 67,482 $ 48,703 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions | The fair value was estimated using the Monte Carlo simulation model with the following assumptions: For the Nine Months Ended October 3, September 27, Risk-free interest rate 0.2% 1.5% Teradyne volatility-historical 43.9% 34.9% NYSE Composite Index volatility-historical 22.9% 11.4% Dividend yield 0.4% 0.6% |
Fair Value of Stock Options Using Assumptions | The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Nine Months Ended October 3, September 27, Expected life (years) 5.0 5.0 Risk-free interest rate 0.4% 1.6% Volatility-historical 37.8% 31.6% Dividend yield 0.4% 0.6% |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Changes in Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive income, which are presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Retirement Plans Service Credit Total (in thousands) Nine Months Ended October 3, 2021 Balance at December 31, 2020, net of tax of $0, $1,910, $(1,126), respectively $ 25,389 $ 6,954 $ 1,173 $ 33,516 Other comprehensive loss before reclassifications, net of tax of $0, $(516), $0, respectively (26,672 ) (1,952 ) — (28,624 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(186), $(2), respectively — (670 ) (5 ) (675 ) Net current period other comprehensive loss, net of tax of $0 , $(702), $ (26,672 ) (2,622 ) (5 ) (29,299 ) Balance at October 3, 2021, net of tax of $0, $1,208, $(1,128), respectively $ (1,283 ) $ 4,332 $ 1,168 $ 4,217 Nine Months Ended September 27, 2020 Balance at December 31, 2019, net of tax of $0, $946, $(1,124), respectively $ (23,514 ) $ 3,480 $ 1,180 $ (18,854 ) Other comprehensive income before reclassifications, net of tax of $0, $1,410, $0, respectively 24,131 5,165 — 29,296 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(615), $ (1 — (2,188 ) (6 ) (2,194 ) Net current period other comprehensive income (loss), net of tax of $0, $795, $(1), respectively 24,131 2,977 (6 ) 27,102 Balance at September 27, 2020, net of tax of $0, $1,741, $(1,125), respectively $ 617 $ 6,457 $ 1,174 $ 8,248 |
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations | Reclassifications out of accumulated other comprehensive income to the statement of operations for the three and nine months ended October 3, 2021 and September 27, 2020 were as follows: Details about Accumulated Other Comprehensive Income Components For the Three Months Ended For the Nine Months Ended Affected Line Item in the Statements of Operations October 3, September 27, October 3, September 27, (in thousands) Available-for-sale Unrealized gains, net of tax of $65, $194, $186, $615, respectively $ 229 $ 689 $ 670 $ 2,188 Other (income) Defined benefit postretirement plan: Amortization of prior service credit, net of tax of $0, $0, $2, $1, respectively 2 2 5 6 (a) Total reclassifications, net of tax of $65, $194, $188, $616, respectively $ 231 $ 691 $ 675 $ 2,194 Net income (a) The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note Q: “Retirement Plans.” |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segments for the nine months ended October 3, 2021, were as follows: Industrial Automation System Wireless Semiconductor Total (in thousands) Balance at December 31, 2020 Goodwill $ 433,752 $ 158,699 $ 361,819 $ 262,155 $ 1,216,425 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 433,752 10,516 7,976 1,615 453,859 Foreign currency translation adjustment (20,373 ) — — (88 ) (20,461 ) Balance at October 3, 2021 Goodwill 413,379 158,699 361,819 262,067 1,195,964 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) $ 413,379 $ 10,516 $ 7,976 $ 1,527 $ 433,398 |
Schedule of Estimated Intangible Assets Amortization Expense | Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2021 (remainder) $ 5,199 2022 20,299 2023 19,815 2024 19,507 2025 11,645 Thereafter 5,212 |
Wireless Test | |
Schedule of Amortizable Intangible Assets | Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: Gross Carrying Amount Accumulated Amortization Foreign Currency Net Carrying Amount Balance at October 3, 2021 (in thousands) Developed technology $ 272,547 $ (220,147 ) $ (3,489 ) $ 48,911 Customer relationships 57,739 (48,351 ) 174 9,562 Tradenames and trademarks 70,120 (46,643 ) (273 ) 23,204 Total intangible assets $ 400,406 $ (315,141 ) $ (3,588 ) $ 81,677 Balance, December 31, 2020 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 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of basic and diluted net income per common share: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 256,718 $ 222,718 $ 790,549 $ 587,815 Weighted average common shares-basic 164,583 166,014 165,690 166,131 Effect of dilutive potential common shares: Convertible note hedge warrant shares (1) 9,819 7,775 9,774 6,364 Incremental shares from assumed conversion of convertible notes (2) 6,464 9,156 8,784 8,029 Restricted stock units 1,035 1,237 1,147 1,104 Stock options 73 141 87 136 Employee stock purchase plan 13 15 10 13 Dilutive potential common shares 17,404 18,324 19,802 15,646 Weighted average common shares-diluted 181,987 184,338 185,492 181,777 Net income per common share-basic $ 1.56 $ 1.34 $ 4.77 $ 3.54 Net income per common share-diluted $ 1.41 $ 1.21 $ 4.26 $ 3.23 (1) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.56 and $39.58, multiplied by million shares and 14.6 million shares for the three and nine months ended October 3, 2021, respectively. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. (2) Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.53 and $31.54, multiplied by million shares and 11.7 million shares, for the three and nine months ended October 3, 2021, respectively. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Defined Benefit Pension Plans | |
Net Periodic Pension and Postretirement Benefit Costs | For the three and nine months ended October 3, 2021 and September 27, 2020, Teradyne’s net periodic pension cost was comprised of the following components: For the Three Months Ended October 3, 2021 September 27, 2020 United States Foreign United States Foreign (in thousands) Service cost $ 452 $ 240 $ 417 $ 216 Interest cost 1,098 86 1,460 123 Expected return on plan assets (936 ) (17 ) (1,170 ) (16 ) Net actuarial loss — — 2,238 — Settlement loss — — 450 — Total net periodic pension cost $ 614 $ 309 $ 3,395 $ 323 For the Nine Months Ended October 3, 2021 September 27, 2020 United States Foreign United States Foreign (in thousands) Service cost $ 1,357 $ 720 $ 1,283 $ 648 Interest cost 3,295 257 4,505 369 Expected return on plan assets (2,809 ) (50 ) (3,634 ) (47 ) Net actuarial (gain) loss (400 ) — 2,418 — Settlement loss — — 450 — Total net periodic pension cost $ 1,443 $ 927 $ 5,022 $ 970 |
Postretirement Benefit Plans | |
Net Periodic Pension and Postretirement Benefit Costs | For the three and nine months ended October 3, 2021 and September 27, 2020, Teradyne’s net periodic postretirement benefit cost (credit) was comprised of the following components: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Service cost $ 16 $ 14 $ 48 $ 43 Interest cost 43 60 128 180 Amortization of prior service credit (2 ) (2 ) (7 ) (7 ) Net actuarial gain — — (228 ) (279 ) Total net periodic postretirement benefit cost (credit) $ 57 $ 72 $ (59 ) $ (63 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Reconciliation of Effective Tax Rate | A reconciliation of the United States federal statutory corporate tax rate to Teradyne’s effective tax rate was as follows: For the Three Ended For the Nine Months Ended October 3, September 27, October 3, September 27, U.S. statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Foreign taxes (4.4 ) (6.9 ) (4.4 ) (5.8 ) Tax credits (1.9 ) (1.6 ) (1.4 ) (1.6 ) International provisions of the U.S. Tax Cuts and Jobs Act of 2017 (1.5 ) 3.0 (1.6 ) 0.5 Discrete benefit related to equity compensation (0.1 ) (0.4 ) (1.6 ) (1.4 ) Other, net 0.7 0.5 0.7 0.6 Effective tax rate 13.8 % 15.6 % 12.7 % 13.3 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Segment Information | Segment information for th e Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Other Consolidated (in thousands) Three Months Ended October 3, 2021 Revenues $ 688,232 $ 102,605 $ 91,014 $ 68,713 $ (63 ) $ 950,501 Income (loss) before income taxes (1)(2) 265,017 31,773 (4,226 ) 31,726 (26,535 ) 297,755 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 Three Months Ended September 27, 2020 Revenues $ 592,141 $ 118,169 $ 68,711 $ 40,504 $ (41 ) $ 819,484 Income (loss) before income taxes (1)(2) 189,116 47,368 (5,302 ) 10,938 21,611 263,731 Total assets (3) 1,069,830 155,642 667,132 108,671 1,435,237 3,436,512 Nine Months Ended October 3, 2021 (4) Revenues $ 2,050,271 $ 340,261 $ 263,151 $ 164,504 $ (352 ) $ 2,817,835 Income (loss) before income taxes (1)(2) 778,687 116,788 (14,586 ) 63,810 (38,925 ) 905,774 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 Nine Months Ended September 27, 2020 Revenues $ 1,735,777 $ 306,051 $ 187,792 $ 133,174 $ (294 ) $ 2,362,500 Income (loss) before income taxes (1)(2) 571,719 114,968 (32,041 ) 35,640 (12,197 ) 678,089 Total assets (3) 1,069,830 155,642 667,132 108,671 1,435,237 3,436,512 (1) Included in Corporate and Other are: contingent consideration adjustments, loss on convertible debt conversions, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations and acquisition related: (a) charges; (b) legal fees; (c) compensation. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, loss on convertible debt conversions 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. (4) The (loss) before income taxes for the nine months ended October 3, 2021 for Industrial Automation has been decreased and Corporate and Other has been increased to correctly eliminate a $10.1 million immaterial error in the three and six months ended July 4, 2021 related to intercompany charges. The error is not material to any historical periods. |
Schedule of Segment Reporting Information by Segment Charges | Included in each segment are charges and credits in the following line items in the statements of operations: For the Three Months Ended For the Nine Months Ended October 3, September 27, October 3, September 27, (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 3,725 $ 1,131 $ 4,959 $ 7,956 Restructuring and other—Contract termination settlement charge — — — 4,000 Industrial Automation: Cost of revenues—inventory charge $ 3,656 $ — $ 4,941 $ 505 Restructuring and other—employee severance 476 — 965 664 Restructuring and other—acquisition related expenses and compensation — — 825 790 Wireless: Cost of revenues—inventory charge $ 679 $ 1,802 $ 1,351 $ 3,957 System Test: Cost of revenues—inventory charge $ — $ — $ 524 $ 698 Corporate and Other: Other (income) expense, net—loss on convertible debt conversion $ 20,153 $ — $ 25,397 $ — Restructuring and other—other — — 1,846 — Restructuring and other—AutoGuide contingent consideration adjustment — (27,206 ) (7,227 ) (4,421 ) Restructuring and other—acquisition related expenses and compensation — (1,086 ) (513 ) 2,629 Restructuring and other—MiR contingent consideration adjustment — — — (3,546 ) |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements - Additional Information (Detail) | Nov. 04, 2021 | Dec. 12, 2016 |
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | ||
Debt instrument, interest rate, stated percentage | 1.25% | 1.25% |
Investment In Other Company - A
Investment In Other Company - Additional Information (Details) - MachineMetrics, Inc [Member] - USD ($) $ in Millions | 3 Months Ended | |
Oct. 03, 2021 | Jun. 01, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Long-term Investments | $ 12 | $ 12 |
Unrealized Gain (Loss) on Investments | $ 0 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Deferred Revenue And Customer Advances | $ 32.9 | $ 17.6 | $ 82.5 | $ 78.2 |
Deferred Revenue and Trade Accounts Receivable | 66.9 | $ 16.5 | 81.7 | $ 113.5 |
Revenue, Remaining Performance Obligation, Amount | $ 1,293 | $ 1,293 | ||
Short-term Contract with Customer [Member] | ||||
Revenue, Remaining Performance Obligation, Percentage | 94.00% | 94.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 12 months | |||
Long-term Contract with Customer [Member] | ||||
Revenue, Remaining Performance Obligation, Percentage | 5.00% | 5.00% | ||
Long-term Contract with Customer [Member] | Revenue Remaining Performance Obligation Percentage Two [Member] | ||||
Revenue, Remaining Performance Obligation, Percentage | 1.00% | 1.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 3 years | |||
Long-term Contract with Customer [Member] | Maximum [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 3 years | |||
Long-term Contract with Customer [Member] | Minimum [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 1 year |
Disaggregated Revenue by Primar
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | $ 950,501 | [1] | $ 819,484 | [1] | $ 2,817,835 | [2],[3] | $ 2,362,500 | [2] |
Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 688,232 | 592,141 | 2,050,271 | [3] | 1,735,777 | |||
System Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 102,605 | [1] | 118,169 | [1] | 340,261 | [2],[3] | 306,051 | [2] |
Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 91,014 | 68,711 | 263,151 | [3] | 187,792 | |||
Wireless Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 68,713 | [1] | 40,504 | [1] | 164,504 | [2],[3] | 133,174 | [2] |
Corporate and Other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | (63) | [1] | (41) | [1] | (352) | [2] | (294) | [2] |
Point in Time | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 856,287 | [1] | 736,325 | [1] | 2,546,734 | [2] | 2,124,031 | [2] |
Point in Time | System Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 88,155 | [1] | 101,045 | [1] | 295,666 | [2] | 259,498 | [2] |
Point in Time | Wireless Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 65,409 | [1] | 37,901 | [1] | 154,908 | [2] | 125,304 | [2] |
Point in Time | Corporate and Other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | (63) | [1] | (41) | [1] | (352) | [2] | (294) | [2] |
Over Time | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 94,214 | [1] | 83,159 | [1] | 271,101 | [2] | 238,469 | [2] |
Over Time | System Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 14,450 | [1] | 17,124 | [1] | 44,595 | [2] | 46,553 | [2] |
Over Time | Wireless Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 3,304 | [1] | 2,603 | [1] | 9,596 | [2] | 7,870 | [2] |
Americas | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 105,999 | [1] | 87,494 | [1] | 287,475 | [2] | 232,840 | [2] |
Americas | System Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 34,560 | [1] | 35,140 | [1] | 98,475 | [2] | 91,924 | [2] |
Americas | Wireless Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 11,352 | [1] | 5,211 | [1] | 24,228 | [2] | 15,253 | [2] |
Americas | Corporate and Other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | (63) | [1] | (41) | [1] | (352) | [2] | (294) | [2] |
Europe, Middle East and Africa | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 74,711 | [1] | 45,447 | [1] | 189,291 | [2] | 147,678 | [2] |
Europe, Middle East and Africa | System Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 5,288 | [1] | 4,495 | [1] | 18,279 | [2] | 16,919 | [2] |
Europe, Middle East and Africa | Wireless Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 3,017 | [1] | 1,428 | [1] | 6,598 | [2] | 4,345 | [2] |
Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 769,791 | [1] | 686,543 | [1] | 2,341,069 | [2] | 1,981,982 | [2] |
Asia Pacific | System Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 62,757 | [1] | 78,534 | [1] | 223,507 | [2] | 197,208 | [2] |
Asia Pacific | Wireless Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 54,344 | [1] | 33,865 | [1] | 133,678 | [2] | 113,576 | [2] |
SOC | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 575,017 | [1] | 449,705 | [1] | 1,736,917 | [2] | 1,423,627 | [2] |
SOC | Point in Time | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 508,747 | [1] | 393,717 | [1] | 1,548,895 | [2] | 1,261,468 | [2] |
SOC | Over Time | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 66,270 | [1] | 55,988 | [1] | 188,022 | [2] | 162,159 | [2] |
SOC | Americas | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 29,119 | [1] | 17,678 | [1] | 71,562 | [2] | 51,315 | [2] |
SOC | Europe, Middle East and Africa | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 26,012 | [1] | 11,206 | [1] | 47,238 | [2] | 41,849 | [2] |
SOC | Asia Pacific | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 519,886 | [1] | 420,821 | [1] | 1,618,117 | [2] | 1,330,463 | [2] |
Memory | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 113,215 | [1] | 142,436 | [1] | 313,354 | [2] | 312,150 | [2] |
Memory | Point in Time | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 105,454 | [1] | 137,929 | [1] | 291,578 | [2] | 298,150 | [2] |
Memory | Over Time | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 7,761 | [1] | 4,507 | [1] | 21,776 | [2] | 14,000 | [2] |
Memory | Americas | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 2,281 | [1] | 3,730 | [1] | 9,373 | [2] | 11,481 | [2] |
Memory | Europe, Middle East and Africa | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 572 | [1] | 1,420 | [1] | 2,419 | [2] | 3,990 | [2] |
Memory | Asia Pacific | Semiconductor Test | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 110,362 | [1] | 137,286 | [1] | 301,562 | [2] | 296,679 | [2] |
Universal Robots (UR) | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 77,750 | [1] | 53,209 | [1] | 219,428 | [2] | 146,457 | [2] |
Universal Robots (UR) | Point in Time | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 76,008 | [1] | 51,523 | [1] | 214,427 | [2] | 140,829 | [2] |
Universal Robots (UR) | Over Time | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 1,742 | [1] | 1,686 | [1] | 5,001 | [2] | 5,628 | [2] |
Universal Robots (UR) | Americas | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 23,429 | [1] | 16,527 | [1] | 66,390 | [2] | 42,634 | [2] |
Universal Robots (UR) | Europe, Middle East and Africa | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 34,667 | [1] | 22,211 | [1] | 97,507 | [2] | 64,158 | [2] |
Universal Robots (UR) | Asia Pacific | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 19,654 | [1] | 14,471 | [1] | 55,531 | [2] | 39,665 | [2] |
MiR | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 12,958 | [1] | 10,234 | [1] | 42,989 | [2] | 30,644 | [2] |
MiR | Point in Time | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 12,351 | [1] | 10,175 | [1] | 41,506 | [2] | 30,468 | [2] |
MiR | Over Time | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 607 | [1] | 59 | [1] | 1,483 | [2] | 176 | [2] |
MiR | Americas | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 5,015 | [1] | 3,981 | [1] | 17,065 | [2] | 9,836 | [2] |
MiR | Europe, Middle East and Africa | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 5,155 | [1] | 4,687 | [1] | 17,250 | [2] | 16,417 | [2] |
MiR | Asia Pacific | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 2,788 | [1] | 1,566 | [1] | 8,674 | [2] | 4,391 | [2] |
Autoguide LLC [Member] | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 306 | [1] | 5,268 | [1] | 734 | [2] | 10,691 | [2] |
Autoguide LLC [Member] | Point in Time | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 226 | [1] | 4,076 | [1] | 106 | [2] | 8,608 | [2] |
Autoguide LLC [Member] | Over Time | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | 80 | [1] | 1,192 | [1] | 628 | [2] | 2,083 | [2] |
Autoguide LLC [Member] | Americas | Industrial Automation | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total | $ 306 | [1] | $ 5,268 | [1] | $ 734 | [2] | $ 10,691 | [2] |
[1] | Includes $3.8 million and $1.7 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers. | |||||||
[2] | Includes $11.1 million and $6.1 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers. | |||||||
[3] | The (loss) before income taxes for the nine months ended October 3, 2021 for Industrial Automation has been decreased and Corporate and Other has been increased to correctly eliminate a $10.1 million immaterial error in the three and six months ended July 4, 2021 related to intercompany charges. The error is not material to any historical periods. |
Disaggregated Revenue by Prim_2
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Accounting Policies [Abstract] | ||||
Revenue on leases | $ 3.8 | $ 1.7 | $ 11.1 | $ 6.1 |
Composition of Inventories, Net
Composition of Inventories, Net (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 131,807 | $ 114,133 |
Work-in-process | 34,911 | 25,408 |
Finished goods | 57,524 | 82,648 |
Inventories, net | $ 224,242 | $ 222,189 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Oct. 03, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory reserves | $ 112.5 | $ 110.6 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Dec. 31, 2020 | |
Financial Instruments and Fair Value [Line Items] | |||||
Available-for-sale securities, realized gain | $ 0.5 | $ 1.1 | $ 2.6 | $ 4.1 | |
Available-for-sale securities, realized loss | 0 | 0.1 | 0 | 0.3 | |
Aggregate loss of investments with unrealized losses greater than one year | 6.2 | 6.2 | |||
Fair market value of investments with unrealized losses less than one year | 57.3 | 57.3 | $ 70.4 | ||
Unrealized Gain (loss) on contracts | 1 | 1.2 | 1.3 | 0.4 | |
Equity securities unrealized gain | $ 2 | 3.3 | 5.7 | ||
Equity securities unrealized loss | 0.4 | 1.1 | $ 6 | ||
Debt Mutual Funds | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Available for sale securities with out contractual maturity date | $ 8.9 | 8.9 | |||
Foreign Exchange Contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Unrealized Gain (loss) on contracts | $ 181.8 | $ 152.9 |
Schedule of Fair Value of Finan
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 334,285 | $ 610,840 |
U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 80,519 | 258,304 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 179,629 | 254,413 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 58,648 | 83,615 |
Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,346 | 979 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 4,616 | 4,339 |
Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 8,937 | 8,565 |
Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 590 | 625 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 1,449,515 | 1,554,381 |
Derivative assets | 93 | 95 |
Total | 1,449,608 | 1,554,476 |
Contingent consideration | 7,227 | |
Derivative liabilities | 433 | 504 |
Total | 433 | 7,731 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 577,752 | 443,166 |
Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 501,702 | 470,955 |
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 80,519 | 258,304 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 179,629 | 254,413 |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 58,648 | 83,615 |
Fair Value, Measurements, Recurring | Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,346 | 979 |
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 4,616 | 4,339 |
Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 8,937 | 8,565 |
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 590 | 625 |
Fair Value, Measurements, Recurring | Equity Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 35,776 | 29,420 |
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 | 799,168 | 828,919 |
Total | 799,168 | 828,919 |
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 | 577,752 | 443,166 |
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 | 176,703 | 347,768 |
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 | 8,937 | 8,565 |
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 | 35,776 | 29,420 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 650,347 | 725,462 |
Derivative assets | 93 | 95 |
Total | 650,440 | 725,557 |
Derivative liabilities | 433 | 504 |
Total | 433 | 504 |
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 | 324,999 | 123,187 |
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 | 80,519 | 258,304 |
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 | 179,629 | 254,413 |
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 | 58,648 | 83,615 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,346 | 979 |
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 | 4,616 | 4,339 |
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 | $ 590 | 625 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | 7,227 | |
Total | $ 7,227 |
Schedule of Reported Financial
Schedule of Reported Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 1,449,608 | $ 1,554,476 |
Liabilities | 433 | 7,731 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 433 | 504 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 1,079,454 | 914,121 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 233,397 | 522,280 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 136,664 | 117,980 |
Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 93 | 95 |
Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 7,227 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 799,168 | 828,919 |
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 | 754,455 | 790,934 |
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 | 44,713 | 37,985 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 650,440 | 725,557 |
Liabilities | 433 | 504 |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 433 | 504 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 324,999 | 123,187 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 233,397 | 522,280 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 91,951 | 79,995 |
Significant Other Observable Inputs (Level 2) | Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 93 | 95 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 7,227 | |
Significant Unobservable Inputs (Level 3) | Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | $ 7,227 |
Schedule of Changes in Fair Val
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at beginning of period | $ 0 | $ 49,737 | $ 7,227 | $ 39,705 | |
Fair value adjustment | [1],[2],[3] | 0 | (27,206) | (7,227) | (7,967) |
Foreign currency impact | 0 | 0 | 0 | (355) | |
Payments | [4] | (8,852) | |||
Balance at end of period | $ 0 | $ 22,531 | $ 0 | $ 22,531 | |
[1] | In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. As of October 3, 2021, the maximum amount of contingent consideration that could be paid in connection with the acquisition of AutoGuide is $100.2 million. The remaining earn-out periods end on December 31, 2021 and December 31, 2022. The sellers of AutoGuide have filed an arbitration claim against Teradyne related to allegations of non-compliance with its earn-out obligations. 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 arbitration (see Note R: “Commitments and Contingencies”). | ||||
[2] | In the nine months ended September 27, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of Mobile Industrial Robots (“MiR”) decreased by $3.5 million due to lower forecasted results. | ||||
[3] | In the three and nine months ended September 27, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide decreased by $27.2 million and $4.4 million, respectively, due to lower forecasted revenues and earnings before interest and taxes. | ||||
[4] | In the nine months ended September 27, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out in connection with the acquisition of MiR. |
Schedule of Changes in Fair V_2
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Payments of contingent consideration | $ 8,852 | ||
Increase (decrease) in contingent consideration | $ (7,227) | (7,967) | |
Maximum amount of contingent consideration paid for acquisition | 8,852 | ||
Avionics Interface Technologies, LLC | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Payments of contingent consideration | 8,900 | ||
Maximum amount of contingent consideration paid for acquisition | 8,900 | ||
MiR | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Payments of contingent consideration | $ 27,200 | 4,400 | |
Maximum amount of contingent consideration paid for acquisition | $ 27,200 | 4,400 | |
Autoguide LLC [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Payments of contingent consideration | 100,200 | 3,500 | |
Maximum amount of contingent consideration paid for acquisition | 100,200 | $ 3,500 | |
Autoguide LLC [Member] | Dispute In Respect Of Contingent Consideration [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Increase (decrease) in contingent consideration | $ 7,200 |
Schedule of Carrying Amounts an
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Marketable securities | $ 334,285 | $ 610,840 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 1,079,454 | 914,121 | |
Marketable securities | 370,061 | 640,260 | |
Derivative assets | 93 | 95 | |
Contingent consideration | 7,227 | ||
Derivative liabilities | 433 | 504 | |
Convertible debt | [1] | 145,003 | 410,111 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 1,079,454 | 914,121 | |
Marketable securities | 370,061 | 640,260 | |
Derivative assets | 93 | 95 | |
Contingent consideration | 7,227 | ||
Derivative liabilities | 433 | 504 | |
Convertible debt | [1] | $ 546,464 | $ 1,739,553 |
[1] | The carrying value represents the bifurcated debt component only, while the level 2 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 | Oct. 03, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 328,741 | $ 601,976 |
Available-for-sale marketable securities, Unrealized Gain | 6,138 | 9,077 |
Available-for-sale marketable securities, Unrealized (Loss) | (594) | (213) |
Available-for-sale marketable securities, Fair Market Value | 334,285 | 610,840 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 63,447 | 70,418 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 80,370 | 257,132 |
Available-for-sale marketable securities, Unrealized Gain | 636 | 1,330 |
Available-for-sale marketable securities, Unrealized (Loss) | (487) | (158) |
Available-for-sale marketable securities, Fair Market Value | 80,519 | 258,304 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 17,336 | 17,243 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 179,624 | 254,404 |
Available-for-sale marketable securities, Unrealized Gain | 5 | 10 |
Available-for-sale marketable securities, Unrealized (Loss) | 0 | (1) |
Available-for-sale marketable securities, Fair Market Value | 179,629 | 254,413 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 20,799 | 12,173 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 53,329 | 76,129 |
Available-for-sale marketable securities, Unrealized Gain | 5,421 | 7,539 |
Available-for-sale marketable securities, Unrealized (Loss) | (102) | (53) |
Available-for-sale marketable securities, Fair Market Value | 58,648 | 83,615 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 22,010 | 39,896 |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 1,346 | 979 |
Available-for-sale marketable securities, Unrealized Gain | 0 | |
Available-for-sale marketable securities, Fair Market Value | 1,346 | 979 |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 4,610 | 4,294 |
Available-for-sale marketable securities, Unrealized Gain | 11 | 46 |
Available-for-sale marketable securities, Unrealized (Loss) | (5) | (1) |
Available-for-sale marketable securities, Fair Market Value | 4,616 | 4,339 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 3,302 | 1,106 |
Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 8,872 | 8,413 |
Available-for-sale marketable securities, Unrealized Gain | 65 | 152 |
Available-for-sale marketable securities, Fair Market Value | 8,937 | 8,565 |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 590 | 625 |
Available-for-sale marketable securities, Fair Market Value | $ 590 | $ 625 |
Schedule of Reported Available
Schedule of Reported Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 328,741 | $ 601,976 |
Available-for-sale marketable securities, Unrealized Gain | 6,138 | 9,077 |
Available-for-sale marketable securities, Unrealized (Loss) | (594) | (213) |
Available-for-sale marketable securities, Fair Market Value | 334,285 | 610,840 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 63,447 | 70,418 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 233,327 | 522,228 |
Available-for-sale marketable securities, Unrealized Gain | 92 | 92 |
Available-for-sale marketable securities, Unrealized (Loss) | (22) | (40) |
Available-for-sale marketable securities, Fair Market Value | 233,397 | 522,280 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 28,773 | 61,806 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 95,414 | 79,748 |
Available-for-sale marketable securities, Unrealized Gain | 6,046 | 8,985 |
Available-for-sale marketable securities, Unrealized (Loss) | (572) | (173) |
Available-for-sale marketable securities, Fair Market Value | 100,888 | 88,560 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 34,674 | $ 8,612 |
Contractual Maturities of Inves
Contractual Maturities of Investments in Debt Securities Held (Detail) $ in Thousands | Oct. 03, 2021USD ($) |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $ 233,327 |
Due after 1 year through 5 years, cost | 46,460 |
Due after 5 years through 10 years, cost | 6,120 |
Due after 10 years, cost | 33,962 |
Total, cost | 319,869 |
Due within one year, fair market value | 233,397 |
Due after 1 year through 5 years, fair market value | 46,744 |
Due after 5 years through 10 years, fair market value | 6,586 |
Due after 10 years, fair maket value | 38,621 |
Total, fair market value | $ 325,348 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets (liabilities), net | $ (340) | $ (409) |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 93 | 95 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (433) | $ (504) |
Schedule of Effect of Derivativ
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses (Gains) on derivatives recognized in statements of operations | $ 2,288 | $ (551) | $ 5,937 | $ 3,930 |
Schedule of Effect of Derivat_2
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on foreign currency transactions | $ 1 | $ 1.2 | $ 1.3 | $ 0.4 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, shares in Millions | Nov. 05, 2021USD ($) | May 01, 2020USD ($) | Dec. 12, 2016USD ($)Customer$ / sharesshares | Dec. 31, 2021USD ($) | Oct. 03, 2021USD ($)$ / shares | Oct. 03, 2021USD ($)$ / sharesshares | Sep. 27, 2020USD ($)shares | Dec. 31, 2020USD ($) | Nov. 04, 2021 |
Debt Instrument | |||||||||
Repurchase of common stock | $ 406,180,000 | $ 88,465,000 | |||||||
Repurchase of stock, shares | shares | 3.3 | 1.5 | |||||||
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 rates applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.50% 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 | $ 235,200,000 | $ 302,000,000 | |||||||
Other (income) expense [Member] | |||||||||
Debt Instrument | |||||||||
Gain loss on debt conversion | 20,200,000 | 25,400,000 | |||||||
Convertible Common Shares [Member] | |||||||||
Debt Instrument | |||||||||
Shares Issued, Stock Options Exercised | 7,200,000 | ||||||||
Subsequent Event [Member] | Convertible Common Shares [Member] | |||||||||
Debt Instrument | |||||||||
Increase in debt principal, Additional conversion | $ 41,000,000 | ||||||||
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 | $ 157,972,000 | 157,972,000 | $ 459,971,000 | |||||
Debt instrument, interest rate, stated percentage | 1.25% | 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 | ||||||||
Senior notes maturity date | Dec. 15, 2023 | ||||||||
Debt instrument, frequency of periodic payment | payable semiannually in arrears on June 15 and December 15 of each year | ||||||||
Debt instrument, date of first required payment | Jun. 15, 2017 | ||||||||
Debt instrument, conversion option expiration date | Sep. 15, 2023 | ||||||||
Debt instrument conversion price | $ / shares | $ 31.53 | $ 31.53 | $ 31.53 | ||||||
Shares that would be issued upon conversion | shares | 14.6 | 8.7 | |||||||
Strike price per share of warrant | $ / shares | $ 39.56 | ||||||||
Debt instrument, convertible, carrying amount of equity component | $ 100,800,000 | $ 100,800,000 | $ 100,800,000 | ||||||
Debt instrument, effective annual interest rate | 5.00% | 5.00% | |||||||
Financing cost | $ 900,000 | $ 900,000 | $ 7,200,000 | ||||||
Debt issuance costs, amortization period | 7 years | ||||||||
Unamortized discount | 13,000,000 | 13,000,000 | |||||||
Debt Instrument, convertible, remaining discount amortization period | 2 years 3 months 18 days | ||||||||
Value of notes converted | 1,364,600,000 | ||||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Subsequent Event [Member] | |||||||||
Debt Instrument | |||||||||
Debt instrument conversion converted instrument amount | $ 343,000,000 | ||||||||
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 | ||||||||
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 | |||||||||
Revolving credit facility costs incurred | $ 3,500,000 | $ 3,500,000 |
Components of Convertible Senio
Components of Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 | Dec. 12, 2016 |
Debt Instrument | |||
Current debt | $ 32,219 | $ 33,343 | |
Long-term debt | 112,784 | 376,768 | |
Net carrying amount of convertible debt | 145,003 | 410,111 | |
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||
Debt Instrument | |||
Debt principal | 157,972 | 459,971 | $ 460,000 |
Unamortized discount | 12,969 | 49,860 | |
Net carrying amount of convertible debt | $ 145,003 | $ 410,111 |
Interest Expense on Convertible
Interest Expense on Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Debt Instrument | ||||
Contractual interest expense on the coupon | $ 355 | $ 1,438 | $ 2,666 | $ 4,313 |
Amortization of the discount component and debt issue fees recognized as interest expense | 2,424 | 3,887 | 9,771 | 11,518 |
Total interest expense on the convertible debt | $ 2,779 | $ 5,325 | $ 12,437 | $ 15,831 |
Prepayments (Detail)
Prepayments (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Dec. 31, 2020 |
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer and supplier prepayments | $ 334,660 | $ 212,286 |
Prepaid maintenance and other services | 13,574 | 13,116 |
Prepaid taxes | 13,822 | 9,361 |
Other prepayments | 12,093 | 15,329 |
Total prepayments | $ 374,149 | $ 250,092 |
Deferred Revenue and Customer_3
Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Oct. 03, 2021 | Jul. 04, 2021 | Dec. 31, 2020 | Sep. 27, 2020 | Jun. 28, 2020 | Dec. 31, 2019 |
Deferred Revenue Arrangement | ||||||
Maintenance, service and training | $ 83,046 | $ 77,654 | ||||
Extended warranty | 67,482 | $ 63,525 | 51,929 | $ 48,703 | $ 40,178 | $ 30,677 |
Customer advances, undelivered elements and other | 49,874 | 63,438 | ||||
Total deferred revenue and customer advances | $ 200,402 | $ 193,021 |
Product Warranty (Detail)
Product Warranty (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 25,676 | $ 13,016 | $ 16,633 | $ 8,996 |
Accruals for warranties issued during the period | 6,641 | 8,255 | 28,719 | 19,522 |
Accruals related to pre-existing warranties | (963) | 158 | (3,966) | 1,569 |
Settlements made during the period | (5,233) | (6,272) | (15,265) | (14,930) |
Balance at end of period | $ 26,121 | $ 15,157 | $ 26,121 | $ 15,157 |
Extended Product Warranty of Sh
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 63,525 | $ 40,178 | $ 51,929 | $ 30,677 |
Deferral of new extended warranty revenue | 12,728 | 13,674 | 36,533 | 32,724 |
Recognition of extended warranty deferred revenue | (8,771) | (5,149) | (20,980) | (14,698) |
Balance at end of period | $ 67,482 | $ 48,703 | $ 67,482 | $ 48,703 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares shares in Millions | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock price | $ 72.10 | $ 113.48 |
Stock Options | Measurement Input, Expected Dividend Payment [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Estimated annual dividend amount per share | $ 0.40 | $ 0.40 |
Restricted Stock Units | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Period of stock granted to employees and executive officers vest in equal annual installments | 4 years | |
Percentage of awards vesting on the first anniversary of grant date | 100.00% | |
Restricted Stock Units | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Period of stock granted to employees and executive officers vest in equal annual installments | 1 year | |
TSR Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Total shareholder return performance measurement period | 3 years | 3 years |
Minimum age of retirement to be eligible for PRSUs | 60 years | |
Minimum years of service for retirement to be eligible for PRSUs | 10 years | |
Restricted stock unit awards granted | 0.1 | |
Weighted average grant date fair value of restricted stock units granted | $ 125.02 | $ 89.93 |
Stock price | 0.40 | 72.10 |
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 | 113.48 |
TSR Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Percentage of vesting of target shares upon performance achieved | 0.00% | |
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 | 200.00% | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Percentage of common stock price paid | 100.00% | |
PBIT Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Restricted stock unit awards granted | 0.1 | |
Weighted average grant date fair value of restricted stock units granted | $ 113.65 | $ 70.94 |
Service-Based Restricted Stock Units | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Restricted stock unit awards granted | 0.3 | 0.4 |
Weighted average grant date fair value of restricted stock units granted | $ 113.76 | $ 70.76 |
Service-Based Restricted Stock Units | Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Restricted stock unit awards granted | 0.1 | |
Weighted average grant date fair value of restricted stock units granted | $ 36.60 | 20.67 |
Service-Based Restricted Stock Units | Non Employee Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Restricted stock unit awards granted | 0.1 | |
Weighted average grant date fair value of restricted stock units granted | $ 127.77 | $ 64.99 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions (Detail) | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected historical volatility | 37.80% | 31.60% |
New York Stock Exchange Composite Index | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected historical volatility | 22.90% | 11.40% |
TSR Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Risk-free interest rate | 0.20% | 1.50% |
Expected historical volatility | 43.90% | 34.90% |
Dividend yield | 0.40% | 0.60% |
Schedule of Estimated Fair Va_2
Schedule of Estimated Fair Value of Stock Options Grant Using Black Scholes Option Pricing Model (Detail) | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Volatility-historical | 37.80% | 31.60% |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected life (years) | 5 years | 5 years |
Risk-free interest rate | 0.40% | 1.60% |
Dividend yield | 0.40% | 0.60% |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | $ 2,493,256 | $ 1,744,551 | $ 2,207,018 | $ 1,480,158 | |
Other comprehensive (loss) income | (11,105) | 16,748 | (29,299) | 27,102 | |
Balance | 2,537,493 | 1,993,544 | 2,537,493 | 1,993,544 | |
Foreign Currency Translation Reclassification Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 25,389 | (23,514) | |||
Other comprehensive (loss) income before reclassifications, net of tax | (26,672) | 24,131 | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |||
Other comprehensive (loss) income | (26,672) | 24,131 | |||
Balance | (1,283) | 617 | (1,283) | 617 | |
Unrealized Gains (Losses) on Marketable Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 6,954 | 3,480 | |||
Other comprehensive (loss) income before reclassifications, net of tax | (1,952) | 5,165 | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (670) | (2,188) | |||
Other comprehensive (loss) income | (2,622) | 2,977 | |||
Balance | 4,332 | 6,457 | 4,332 | 6,457 | |
Retirement Plans Prior Service Credit | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 1,173 | 1,180 | |||
Other comprehensive (loss) income before reclassifications, net of tax | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | [1] | (2) | (2) | (5) | (6) |
Other comprehensive (loss) income | (5) | (6) | |||
Balance | 1,168 | 1,174 | 1,168 | 1,174 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 15,322 | (8,500) | 33,516 | (18,854) | |
Other comprehensive (loss) income before reclassifications, net of tax | (28,624) | 29,296 | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (231) | (691) | (675) | (2,194) | |
Other comprehensive (loss) income | (11,105) | 16,748 | (29,299) | 27,102 | |
Balance | $ 4,217 | $ 8,248 | $ 4,217 | $ 8,248 | |
[1] | The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note Q: “Retirement Plans. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (65) | $ (194) | $ (188) | $ (616) | ||
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 | $ 0 | $ 0 |
Unrealized (losses) gains on marketable securities, tax | 1,208 | 1,741 | 1,208 | 1,741 | 1,910 | 946 |
Retirement plans prior service benefit, tax | (1,128) | (1,125) | (1,128) | (1,125) | $ (1,126) | $ (1,124) |
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 | (516) | 1,410 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | (65) | (194) | (186) | (615) | ||
Other comprehensive income (loss), tax | (702) | 795 | ||||
Retirement Plans Prior Service Credit | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ 0 | $ 0 | (2) | (1) | ||
Other comprehensive income (loss), tax | $ (2) | $ (1) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest income (expense) | $ 229 | $ 689 | $ 670 | $ 2,188 | |
Retirement Plans Prior Service Credit | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassifications, net of tax | [1] | 2 | 2 | 5 | 6 |
Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassifications, net of tax | $ 231 | $ 691 | $ 675 | $ 2,194 | |
[1] | The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note Q: “Retirement Plans. |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 65 | $ 194 | $ 188 | $ 616 |
Unrealized (Losses) Gains on Marketable Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | 65 | 194 | 186 | 615 |
Amortization of Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 0 | $ 0 | $ 2 | $ 1 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Acquired intangible assets amortization | $ 5,355 | $ 6,219 | $ 16,293 | $ 25,052 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill | $ 1,195,964 | $ 1,216,425 |
Accumulated impairment losses | (762,566) | (762,566) |
Foreign currency translation adjustment | (20,461) | |
Goodwill | 433,398 | 453,859 |
Industrial Automation | ||
Goodwill [Line Items] | ||
Goodwill | 413,379 | 433,752 |
Accumulated impairment losses | 0 | 0 |
Foreign currency translation adjustment | (20,373) | |
Goodwill | 413,379 | 433,752 |
Wireless Test | ||
Goodwill [Line Items] | ||
Goodwill | 361,819 | 361,819 |
Accumulated impairment losses | (353,843) | (353,843) |
Foreign currency translation adjustment | 0 | |
Goodwill | 7,976 | 7,976 |
Semiconductor Test | ||
Goodwill [Line Items] | ||
Goodwill | 262,067 | 262,155 |
Accumulated impairment losses | (260,540) | (260,540) |
Foreign currency translation adjustment | (88) | |
Goodwill | 1,527 | 1,615 |
System Test | ||
Goodwill [Line Items] | ||
Goodwill | 158,699 | 158,699 |
Accumulated impairment losses | (148,183) | (148,183) |
Foreign currency translation adjustment | 0 | |
Goodwill | $ 10,516 | $ 10,516 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 03, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 400,406 | $ 408,906 |
Accumulated Amortization | (315,141) | (307,347) |
Foreign Currency Translation Adjustment | (3,588) | (620) |
Net Carrying Amount | 81,677 | 100,939 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 272,547 | 272,547 |
Accumulated Amortization | (220,147) | (210,479) |
Foreign Currency Translation Adjustment | (3,489) | (1,610) |
Net Carrying Amount | 48,911 | 60,458 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 57,739 | 66,239 |
Accumulated Amortization | (48,351) | (54,524) |
Foreign Currency Translation Adjustment | 174 | 305 |
Net Carrying Amount | 9,562 | 12,020 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 70,120 | 70,120 |
Accumulated Amortization | (46,643) | (42,344) |
Foreign Currency Translation Adjustment | (273) | 685 |
Net Carrying Amount | $ 23,204 | $ 28,461 |
Schedule of Estimated Intangibl
Schedule of Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands | Oct. 03, 2021USD ($) |
Finite-Lived Intangible Assets | |
2021 (remainder) | $ 5,199 |
2022 | 20,299 |
2023 | 19,815 |
2024 | 19,507 |
2025 | 11,645 |
Thereafter | $ 5,212 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | ||
Net Income Loss Per Common Share | |||||
Net income for basic and diluted net income per share | $ 256,718 | $ 222,718 | $ 790,549 | $ 587,815 | |
Weighted average common shares-basic | 164,583 | 166,014 | 165,690 | 166,131 | |
Convertible note hedge warrant shares | [1] | 9,819 | 7,775 | 9,774 | 6,364 |
Incremental shares from assumed conversion of convertible notes | [2] | 6,464 | 9,156 | 8,784 | 8,029 |
Employee stock purchase plan | 13 | 15 | 10 | 13 | |
Dilutive potential common shares | 17,404 | 18,324 | 19,802 | 15,646 | |
Weighted average common shares-diluted | 181,987 | 184,338 | 185,492 | 181,777 | |
Net income per common share-basic | $ 1.56 | $ 1.34 | $ 4.77 | $ 3.54 | |
Net income per common share-diluted | $ 1.41 | $ 1.21 | $ 4.26 | $ 3.23 | |
Restricted Stock Units | |||||
Net Income Loss Per Common Share | |||||
Incremental shares attributable to share based payment arrangements | 1,035 | 1,237 | 1,147 | 1,104 | |
Stock Options | |||||
Net Income Loss Per Common Share | |||||
Incremental shares attributable to share based payment arrangements | 73 | 141 | 87 | 136 | |
[1] | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.56 and $39.58, multiplied by 14.6 million shares and 14.6 million shares for the three and nine months ended October 3, 2021, respectively. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. | ||||
[2] | Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.53 and $31.54, multiplied by 8.7 million shares and 11.7 million shares, for the three and nine months ended October 3, 2021, respectively. 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. |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Net Income Per Common Share (Parenthetical) (Detail) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended |
Oct. 03, 2021 | Oct. 03, 2021 | |
Convertible Notes | ||
Net Income Loss Per Common Share | ||
Debt instrument, convertible, stock price trigger | $ 31.53 | $ 31.54 |
Shares that would be issued upon conversion | 8.7 | 11.7 |
Convertible Notes Hedge Warrant | ||
Net Income Loss Per Common Share | ||
Debt instrument, convertible, stock price trigger | $ 39.56 | $ 39.58 |
Shares that would be issued upon conversion | 14.6 | 14.6 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Net Income Loss Per Common Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 | 0.1 | 0.1 | 0.2 |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Severance benefit and charges | $ 600 | $ 1,200 | ||
Contingent consideration adjustment | (7,227) | $ (7,967) | ||
Restructuring and other | 300 | 600 | ||
Increase Decrease in environmental and legal liabilities | 1,700 | |||
Acquisition related costs | $ 300 | 300 | ||
MiR Contingent Consideration Liability [Member] | ||||
Restructuring Cost and Reserve | ||||
Contingent consideration adjustment | 3,500 | |||
Semiconductor Test | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | $ 500 | 1,200 | ||
Gain for the decrease in acquisition related comepnsation liability | 1,100 | |||
Acquisition related costs | 3,400 | |||
Loss on Contract Termination | 4,000 | |||
Semiconductor Test, Industrial Automation and Corporate | ||||
Restructuring Cost and Reserve | ||||
Restructuring and other | 1,200 | |||
Semiconductor Test, Industrial Automation and Corporate | Mobile Industrial Robots (MiR) | ||||
Restructuring Cost and Reserve | ||||
Contingent consideration adjustment | $ 27,200 | $ 7,200 | $ 4,400 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - United States Plans - Annuity Plan For Participants In The US Qualified Pension Plan [Member] - USD ($) $ in Millions | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure | ||
Pension benefit obligation acturial gain loss | $ 2.5 | $ 2.2 |
Defined benefit obligation increase decrease for remeasurement due to settlement | $ 0.8 | $ 0.7 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension and Postretirement (income) Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure | ||||
Net actuarial loss (gain) | $ (627) | $ 2,589 | ||
UNITED STATES | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 452 | $ 417 | 1,357 | 1,283 |
Interest cost | 1,098 | 1,460 | 3,295 | 4,505 |
Expected return on plan assets | (936) | (1,170) | (2,809) | (3,634) |
Net actuarial loss (gain) | 2,238 | (400) | 2,418 | |
Settlement loss | 450 | 450 | ||
Total net periodic pension cost | 614 | 3,395 | 1,443 | 5,022 |
Foreign Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 240 | 216 | 720 | 648 |
Interest cost | 86 | 123 | 257 | 369 |
Expected return on plan assets | (17) | (16) | (50) | (47) |
Total net periodic pension cost | 309 | 323 | 927 | 970 |
Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 16 | 14 | 48 | 43 |
Interest cost | 43 | 60 | 128 | 180 |
Net actuarial loss (gain) | 0 | 0 | (228) | (279) |
Amortization of prior service cost | (2) | (2) | (7) | (7) |
Total net periodic pension cost | $ 57 | $ 72 | $ (59) | $ (63) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Oct. 18, 2019 | Oct. 03, 2021 |
Purchase Commitment, Excluding Long-term Commitment | ||
Aggregate purchase commitments | $ 811.9 | |
Purchase commitments less than one year | $ 777.8 | |
Legal claims, damage sought by party | $ 106.9 |
Schedule of Reconciliation of E
Schedule of Reconciliation of Effective Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Income Tax Disclosure [Line Items] | ||||
US statutory federal tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Foreign taxes | (4.40%) | (6.90%) | (4.40%) | (5.80%) |
Tax credits | (1.90%) | (1.60%) | (1.40%) | (1.60%) |
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 | (1.50%) | 3.00% | (1.60%) | 0.50% |
Discrete benefit related to equity compensation | (0.10%) | (0.40%) | (1.60%) | (1.40%) |
Other, net | 0.70% | 0.50% | 0.70% | 0.60% |
Effective tax rate | 13.80% | 15.60% | 12.70% | 13.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Tax savings due to the tax holiday | $ 23.9 | $ 24.9 | |
Tax savings due to the tax holiday, per share | $ 0.13 | $ 0.14 | |
Accrued interest and penalties | $ 1.5 | $ 1.2 | |
Interest and penalties related to income tax, expense (benefit) | 0.3 | $ 0 | |
Uncertain tax positions | 16.8 | $ 17.9 | |
Net decrease in reserves for uncertain tax positions | (1.1) | ||
Possible Lapse Of Statutes Of Limitations [Member] | |||
Income Taxes [Line Items] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 1.6 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Oct. 03, 2021Segment | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 4 |
Schedule of Segment Information
Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | [3] | Sep. 27, 2020 | Dec. 31, 2020 | |||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 950,501 | [1] | $ 819,484 | [1] | $ 2,817,835 | [2] | $ 2,362,500 | [2] | ||
Income (loss) before income taxes | [4],[5] | 297,755 | 263,731 | 905,774 | 678,089 | |||||
Total assets | 3,762,182 | [3],[6] | 3,436,512 | [6] | 3,762,182 | [6] | 3,436,512 | [6] | $ 3,652,346 | |
Semiconductor Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 688,232 | 592,141 | 2,050,271 | 1,735,777 | ||||||
Income (loss) before income taxes | [4],[5] | 265,017 | 189,116 | 778,687 | 571,719 | |||||
Total assets | [6] | 1,251,549 | [3] | 1,069,830 | 1,251,549 | 1,069,830 | ||||
System Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 102,605 | [1] | 118,169 | [1] | 340,261 | [2] | 306,051 | [2] | ||
Income (loss) before income taxes | [4],[5] | 31,773 | 47,368 | 116,788 | 114,968 | |||||
Total assets | [6] | 147,970 | [3] | 155,642 | 147,970 | 155,642 | ||||
Industrial Automation | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 91,014 | 68,711 | 263,151 | 187,792 | ||||||
Income (loss) before income taxes | [4],[5] | (4,226) | (5,302) | (14,586) | (32,041) | |||||
Total assets | [6] | 696,792 | [3] | 667,132 | 696,792 | 667,132 | ||||
Wireless Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 68,713 | [1] | 40,504 | [1] | 164,504 | [2] | 133,174 | [2] | ||
Income (loss) before income taxes | [4],[5] | 31,726 | 10,938 | 63,810 | 35,640 | |||||
Total assets | [6] | 119,568 | [3] | 108,671 | 119,568 | 108,671 | ||||
Corporate And Others [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | (63) | (41) | (352) | (294) | ||||||
Income (loss) before income taxes | [4],[5] | (26,535) | 21,611 | (38,925) | (12,197) | |||||
Total assets | [6] | $ 1,546,303 | [3] | $ 1,435,237 | $ 1,546,303 | $ 1,435,237 | ||||
[1] | Includes $3.8 million and $1.7 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers. | |||||||||
[2] | Includes $11.1 million and $6.1 million in 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers. | |||||||||
[3] | The (loss) before income taxes for the nine months ended October 3, 2021 for Industrial Automation has been decreased and Corporate and Other has been increased to correctly eliminate a $10.1 million immaterial error in the three and six months ended July 4, 2021 related to intercompany charges. The error is not material to any historical periods. | |||||||||
[4] | Included in Corporate and Other are: contingent consideration adjustments, loss on convertible debt conversions, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations and acquisition related: (a) charges; (b) legal fees; (c) compensation. | |||||||||
[5] | Included in income (loss) before taxes are charges and credits related to restructuring and other, loss on convertible debt conversions and inventory charges. | |||||||||
[6] | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
Schedule of Segment Informati_2
Schedule of Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 04, 2021 | Jul. 04, 2021 | |
Segment Reporting [Abstract] | ||
Immaterial error correction amount | $ 10.1 | $ 10.1 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and other | $ 300 | $ 600 | ||
Acquisition related costs | 300 | 300 | ||
Restructuring and other—employee severance | 1,197 | $ (27,701) | (3,426) | $ 1,915 |
Other (income) expense, net - loss on convertible debt conversion | (21,486) | (764) | (25,223) | (3,595) |
Contingent consideration adjustment | (7,227) | (7,967) | ||
Semiconductor Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 3,725 | 1,131 | 4,959 | 7,956 |
Restructuring and other—Contract termination settlement charge | 4,000 | |||
Acquisition related costs | 3,400 | |||
Industrial Automation | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 3,656 | 4,941 | 505 | |
Acquisition related costs | 825 | 790 | ||
Restructuring and other—employee severance | 476 | 965 | 664 | |
System Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 524 | 698 | ||
Wireless Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 679 | 1,802 | 1,351 | 3,957 |
Corporate And Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other | 1,846 | |||
Corporate And Eliminations | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition related costs | (1,086) | (513) | 2,629 | |
Other (income) expense, net - loss on convertible debt conversion | $ 20,153 | 25,397 | ||
Corporate And Eliminations | Universal Robots (UR) | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | $ (27,206) | $ (7,227) | (4,421) | |
Corporate And Eliminations | Mobile Industrial Robots (MiR) | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | $ (3,546) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Jan. 31, 2021 | Jan. 01, 2021 | Jan. 31, 2020 | |
Cumulative repurchases, shares | 3.3 | 1.5 | |||||
Common stock average price | $ 123.53 | $ 58.33 | |||||
Dividends Payable, Amount Per Share | $ 0.10 | $ 0.10 | |||||
Dividend payment | $ 16,400 | $ 16,600 | $ 49,711 | $ 49,870 | |||
Treasury Stock, Value | $ 600,000 | ||||||
Treasury Stock, Shares | 2,000 | ||||||
Share Repurchase Program [Member] | |||||||
Cumulative repurchases, value | $ 406,200 | $ 88,500 |