Teradyne, Inc 10-Q for FY2021 Q2

About this 10-Q

Headline figures

Teradyne, Inc (TER)

10-Q 2021-08-06 For: 2021-07-04

Added on April 10, 2026

Teradyne, Inc filed this 10-Q on August 6, 2021, covering the quarter ended July 4, 2021 (FY2021 Q2).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Emerging growth company

Smaller reporting company

Quarter ended July 4, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.09B; up 29.5% from $838.66M a year earlier
Net income: $328.32M; up 73.8% from net income of $188.91M a year earlier
Diluted EPS: $1.76; up 67.6% from $1.05 a year earlier

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Massachusetts		04-2272148
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

600 Riverpark Drive, North Reading, Massachusetts		01864
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.125 per share	TER	Nasdaq Stock Market LLC


		Page No.

	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited):

	Condensed Consolidated Balance Sheets as of July 4, 2021 and December 31, 2020		1

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 4, 2021 and June 28, 2020		2

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended July 4, 2021 and June 28, 2020		3

	Condensed Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended July 4, 2021 and June 28, 2020		4

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended July 4, 2021 and June 28, 2020		5

	Notes to Condensed Consolidated Financial Statements		6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		26

Item 3.	Quantitative and Qualitative Disclosures about Market Risk		35

Item 4.	Controls and Procedures		36

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings		36

Item 1A.	Risk Factors		36

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37

Item 4.	Mine Safety Disclosures		37

Item 6.	Exhibits		38


	July 4, 2021		December 31, 2020
	(in thousands, except per share amount)
ASSETS
Current assets:
Cash and cash equivalents	$	954,441	$	914,121
Marketable securities		282,121		522,280
Accounts receivable, less allowance for credit losses of $1,931 and $2,034 at July 4, 2021 and December 31, 2020, respectively		868,457		497,506
Inventories, net		226,138		222,189
Prepayments and other current assets		368,315		259,338

Total current assets		2,699,472		2,415,434
Property, plant and equipment, net		395,395		394,800
Operating lease right-of-use assets, net		61,849		54,569
Marketable securities		181,560		117,980
Deferred tax assets		94,438		87,913
Retirement plans assets		17,170		17,468
Other assets		21,320		9,384
Acquired intangible assets, net		88,121		100,939
Goodwill		441,597		453,859

Total assets	$	4,000,922	$	3,652,346

LIABILITIES
Current liabilities:
Accounts payable	$	156,103	$	133,663
Accrued employees’ compensation and withholdings		205,717		220,321
Deferred revenue and customer advances		148,882		134,662
Other accrued liabilities		146,484		77,581
Operating lease liabilities		20,539		20,573
Income taxes payable		93,876		80,728
Current debt		213,761		33,343

Total current liabilities		985,362		700,871
Retirement plans liabilities		154,311		151,140
Long-term deferred revenue and customer advances		58,534		58,359
Long-term contingent consideration		—		7,227
Long-term other accrued liabilities		19,387		19,352
Deferred tax liabilities		8,961		10,821
Long-term operating lease liabilities		49,066		42,073
Long-term incomes taxes payable		67,041		74,930
Debt		143,618		376,768
Total liabilities		1,486,280		1,441,541

Commitments and contingencies
Mezzanine equity:
Convertible common shares		21,386		3,787
SHAREHOLDERS’ EQUITY
Common stock, $0.125 par value, 1,000,000 shares authorized; 165,444 and 166,123 shares issued and outstanding at July 4, 2021 and December 31, 2020, respectively		20,680		20,765
Additional paid-in capital		1,772,302		1,765,323
Accumulated other comprehensive income		15,322		33,516
Retained earnings		684,952		387,414

Total shareholders’ equity		2,493,256		2,207,018

Total liabilities, convertible common shares and shareholders’ equity	$	4,000,922	$	3,652,346


	For the Three Months Ended						For the Six Months Ended
	July 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020
	(in thousands, except per share amount)
Revenues:
Products	$	951,945		$	734,630		$	1,612,453		$	1,345,536
Services		133,783			104,031			254,881			197,480

Total revenues		1,085,728			838,661			1,867,334			1,543,016
Cost of revenues:
Cost of products		388,845			322,732			656,629			582,728
Cost of services		49,894			44,456			102,098			83,265

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		438,739			367,188			758,727			665,993

Gross profit		646,989			471,473			1,108,607			877,023
Operating expenses:
Selling and administrative		140,187			113,259			269,984			224,647
Engineering and development		110,021			94,102			210,423			179,261
Acquired intangible assets amortization		5,402			8,941			10,938			18,832
Restructuring and other		2,507			37,222			(4,623	)		29,616

Total operating expenses		258,117			253,524			486,722			452,356

Income from operations		388,872			217,949			621,885			424,667
Non-operating (income) expense:
Interest income		(633	)		(1,368	)		(1,441	)		(4,119	)
Interest expense		5,566			6,043			11,569			11,594
Other (income) expense, net		(87	)		(4,017	)		3,738			2,833

Income before income taxes		384,026			217,291			608,019			414,359
Income tax provision		55,707			28,383			74,188			49,261

Net income	$	328,319		$	188,908		$	533,831		$	365,098

Net income per common share:
Basic	$	1.98		$	1.14		$	3.21		$	2.20

Diluted	$	1.76		$	1.05		$	2.85		$	2.02

Weighted average common shares—basic		165,995			165,789			166,243			166,189

Weighted average common shares—diluted		186,750			180,257			187,245			180,497

Cash dividend declared per common share	$	0.10		$	0.10		$	0.20		$	0.20


			Shareholders’ Equity
	Convertible Common Shares Value		Common Stock Shares			Common Stock Par Value			Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings (Accumulated Deficit)			Total Shareholders’ Equity
			(in thousands)
Three Months Ended July 4, 2021
Balance, April 4, 2021	$	1,233		166,419		$	20,802		$	1,765,971		$	8,677		$	529,103		$	2,324,553
Net issuance of common stock under stock-based plans				215			27			14,283									14,310
Stock-based compensation expense										12,515									12,515
Repurchase of common stock				(1,190	)		(149	)								(155,846	)		(155,995	)
Cash dividends ($0.10 per share)																(16,624	)		(16,624	)
Settlements of convertible notes				367			46			45,977									46,023
Exercise of convertible notes hedge call options				(367	)		(46	)		(46,291	)								(46,337	)
Convertible common shares		20,153								(20,153	)								(20,153	)
Net income																328,319			328,319
Other comprehensive income													6,645						6,645

Balance, July 4, 2021	$	21,386		165,444		$	20,680		$	1,772,302		$	15,322		$	684,952		$	2,493,256


Three Months Ended June 28, 2020
Balance, March 29, 2020	$	—		165,938		$	20,742		$	1,721,367		$	(27,113	)	$	(164,323	)	$	1,550,673
Net issuance of common stock under stock-based plans				41			5			(451	)								(446	)
Stock-based compensation expense										9,800									9,800
Repurchase of common stock				(173	)		(22	)								(6,379	)		(6,401	)
Cash dividends ($0.10 per share)																(16,596	)		(16,596	)
Net income																188,908			188,908
Other comprehensive income													18,613						18,613

Balance, June 28, 2020	$	—		165,806		$	20,725		$	1,730,716		$	(8,500	)	$	1,610		$	1,744,551


Six Months Ended July 4, 2021
Balance, December 31, 2020	$	3,787		166,123		$	20,765		$	1,765,323		$	33,516		$	387,414		$	2,207,018
Net issuance of common stock under stock-based plans				885			111			211									322
Stock-based compensation expense										25,874									25,874
Repurchase of common stock				(1,564	)		(196	)								(202,988	)		(203,184	)
Cash dividends ($0.20 per share)																(33,305	)		(33,305	)
Settlements of convertible notes				1,589			199			203,507									203,706
Exercise of convertible notes hedge call options				(1,589	)		(199	)		(205,014	)								(205,213	)
Convertible common shares		17,599								(17,599	)								(17,599	)
Net income																533,831			533,831
Other comprehensive loss													(18,194	)					(18,194	)

Balance, July 4, 2021	$	21,386		165,444		$	20,680		$	1,772,302		$	15,322		$	684,952		$	2,493,256


Six Months Ended June 28, 2020
Balance, December 31, 2019	$	—		166,410		$	20,801		$	1,720,129		$	(18,854	)	$	(241,918	)	$	1,480,158
Net issuance of common stock under stock-based plans				913			114			(10,496	)								(10,382	)
Stock-based compensation expense										21,083									21,083
Repurchase of common stock				(1,517	)		(190	)								(88,275	)		(88,465	)
Cash dividends ($0.20 per share)																(33,295	)		(33,295	)
Net income																365,098			365,098
Other comprehensive income													10,354						10,354

Balance, June 28, 2020	$	—		165,806		$	20,725		$	1,730,716		$	(8,500	)	$	1,610		$	1,744,551


	For the Six Months Ended
	July 4, 2021			June 28, 2020
	(in thousands)
Cash flows from operating activities:
Net income	$	533,831		$	365,098
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Depreciation		45,848			38,305
Stock-based compensation		23,231			21,367
Amortization		19,343			26,234
Loss on convertible debt conversion		5,244			—
Provision for excess and obsolete inventory		3,625			9,637
Contingent consideration adjustment		(7,227	)		19,239
Gains on investments		(4,650	)		(469	)
Deferred taxes		(800	)		(7,163	)
Retirement plans actuarial gains		(627	)		(99	)
Other		199			523
Changes in operating assets and liabilities, net of business acquired:
Accounts receivable		(372,698	)		(331,040	)
Inventories		19,908			(3,728	)
Prepayments and other assets		(117,416	)		(49,479	)
Accounts payable and other liabilities		86,790			113,578
Deferred revenue and customer advances		15,189			28,655
Retirement plans contributions		(2,739	)		(2,501	)
Income taxes		(2,628	)		37,842

Net cash provided by operating activities		244,423			265,999

Cash flows from investing activities:
Purchases of property, plant and equipment		(73,957	)		(84,014	)
Purchases of marketable securities		(398,086	)		(299,548	)
Proceeds from maturities of marketable securities		460,213			182,984
Proceeds from sales of marketable securities		116,112			26,661
Purchase of investment and acquisition of business		(12,000	)		149
Proceeds from life insurance		—			546

Net cash provided by (used for) investing activities		92,282			(173,222	)

Cash flows from financing activities:
Issuance of common stock under stock purchase and stock option plans		32,581			12,757
Repurchase of common stock		(196,584	)		(88,465	)
Payments of convertible debt principal		(66,828	)		—
Dividend payments		(33,271	)		(33,266	)
Payments related to net settlement of employee stock compensation awards		(31,794	)		(22,519	)
Payments of contingent consideration		—			(8,852	)

Net cash used for financing activities		(295,896	)		(140,345	)

Effects of exchange rate changes on cash and cash equivalents		(489	)		(925	)

Increase (decrease) in cash and cash equivalents		40,320			(48,493	)
Cash and cash equivalents at beginning of period		914,121			773,924

Cash and cash equivalents at end of period	$	954,441		$	725,431

Non-cash investing activities:
Capital expenditures incurred but not yet paid:	$	4,503		$	6,281


	Semiconductor Test						Industrial Automation
	System on- a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		AutoGuide			Wireless Test		Corporate and Other			Total
	(in thousands)
For the Three Months Ended July 4, 2021 (1)
Timing of Revenue Recognition
Point in Time	$	675,958	$	84,232	$	88,197	$	74,412	$	15,091	$	—		$	51,619	$	(146	)	$	989,363
Over Time		65,712		8,074		16,622		1,665		809		209			3,274		—			96,365

Total	$	741,670	$	92,306	$	104,819	$	76,077	$	15,900	$	209		$	54,893	$	(146	)	$	1,085,728

Geographical Market
Asia Pacific	$	710,995	$	87,151	$	61,230	$	18,044	$	2,439	$	—		$	45,802	$	—		$	925,661
Americas		21,664		3,672		36,256		24,808		6,897		209			7,107		(146	)		100,467
Europe, Middle East and Africa		9,011		1,483		7,333		33,225		6,564		—			1,984		—			59,600

Total	$	741,670	$	92,306	$	104,819	$	76,077	$	15,900	$	209		$	54,893	$	(146	)	$	1,085,728

For the Three Months Ended June 28, 2020 (1)
Timing of Revenue Recognition
Point in Time	$	520,496	$	80,032	$	57,741	$	41,804	$	11,196	$	3,408		$	46,347	$	(253	)	$	760,771
Over Time		54,077		4,542		14,065		1,747		76		545			2,838		—			77,890

Total	$	574,573	$	84,574	$	71,806	$	43,551	$	11,272	$	3,953		$	49,185	$	(253	)	$	838,661

Geographical Market
Asia Pacific	$	547,700	$	82,492	$	38,656	$	14,279	$	1,232	$	—		$	41,907	$	—		$	726,266
Americas		16,251		855		28,494		11,364		2,390		3,953			5,353		(253	)		68,407
Europe, Middle East and Africa		10,622		1,227		4,656		17,908		7,650		—			1,925		—			43,988

Total	$	574,573	$	84,574	$	71,806	$	43,551	$	11,272	$	3,953		$	49,185	$	(253	)	$	838,661

For the Six Months Ended July 4, 2021 (2)
Timing of Revenue Recognition
Point in Time	$	1,040,148	$	186,124	$	207,511	$	138,419	$	29,155	$	(120	)	$	89,499	$	(289	)	$	1,690,447
Over Time		121,752		14,015		30,145		3,259		876		548			6,292		—			176,887

Total	$	1,161,900	$	200,139	$	237,656	$	141,678	$	30,031	$	428		$	95,791	$	(289	)	$	1,867,334

Geographical Market
Asia Pacific	$	1,098,231	$	191,200	$	160,750	$	35,877	$	5,886	$	—		$	79,334	$	—		$	1,571,278
Americas		42,443		7,092		63,915		42,961		12,050		428			12,876		(289	)		181,476
Europe, Middle East and Africa		21,226		1,847		12,991		62,840		12,095		—			3,581		—			114,580

Total	$	1,161,900	$	200,139	$	237,656	$	141,678	$	30,031	$	428		$	95,791	$	(289	)	$	1,867,334

For the Six Months Ended June 28, 2020 (2)
Timing of Revenue Recognition
Point in Time	$	868,542	$	159,429	$	158,453	$	89,306	$	20,293	$	4,532		$	87,403	$	(253	)	$	1,387,705
Over Time		106,171		9,494		29,429		3,942		117		891			5,267		—			155,311

Total	$	974,713	$	168,923	$	187,882	$	93,248	$	20,410	$	5,423		$	92,670	$	(253	)	$	1,543,016

Geographical Market
Asia Pacific	$	910,433	$	158,601	$	118,674	$	25,195	$	2,825	$	—		$	79,711	$	—		$	1,295,439
Americas		33,637		7,751		56,784		26,108		5,855		5,423			10,041		(253	)		145,346
Europe, Middle East and Africa		30,643		2,571		12,424		41,945		11,730		—			2,918		—			102,231

Total	$	974,713	$	168,923	$	187,882	$	93,248	$	20,410	$	5,423		$	92,670	$	(253	)	$	1,543,016


	July 4, 2021		December 31, 2020
	(in thousands)
Raw material	$	117,339	$	114,133
Work-in-process		37,884		25,408
Finished goods		70,915		82,648

	$	226,138	$	222,189


	July 4, 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	$	568,630	$	—	$	—	$	568,630
Cash equivalents		373,113		12,698		—		385,811
Available-for-sale securities:
Commercial paper		—		225,415		—		225,415
U.S. Treasury securities		—		102,316		—		102,316
Corporate debt securities		—		85,294		—		85,294
Debt mutual funds		8,030		—		—		8,030
U.S. government agency securities		—		4,508		—		4,508
Certificates of deposit and time deposits		—		1,344		—		1,344
Non-U.S. government securities		—		616		—		616
Equity securities:
Mutual funds		36,158		—		—		36,158

	$	985,931	$	432,191	$	—	$	1,418,122
Derivative assets		—		25		—		25

Total	$	985,931	$	432,216	$	—	$	1,418,147

Liabilities
Derivative liabilities		—		365		—		365

Total	$	—	$	365	$	—	$	365


Reported as follows:
	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	941,743	$	12,698	$	—	$	954,441
Marketable securities		—		282,121		—		282,121
Long-term marketable securities		44,188		137,372		—		181,560
Prepayments and other current assets		—		25		—		25

Total	$	985,931	$	432,216	$	—	$	1,418,147

Liabilities
Other current liabilities	$	—	$	365	$	—	$	365

Total	$	—	$	365	$	—	$	365


	December 31, 2020
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Assets
Cash	$	443,166	$	—	$	—	$	443,166
Cash equivalents		347,768		123,187		—		470,955
Available-for-sale securities:								—
U.S. Treasury securities		—		258,304		—		258,304
Commercial paper		—		254,413		—		254,413
Corporate debt securities		—		83,615		—		83,615
Debt mutual funds		8,565		—		—		8,565
U.S. government agency securities		—		4,339		—		4,339
Certificates of deposit and time deposits		—		979		—		979
Non-U.S. government securities		—		625		—		625
Equity securities:
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


	July 4, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Assets
Cash and cash equivalents	$	954,441	$	954,441	$	914,121	$	914,121
Marketable securities		463,681		463,681		640,260		640,260
Derivative assets		25		25		95		95
Liabilities
Contingent consideration		—		—		7,227		7,227
Derivative liabilities		365		365		504		504
Convertible debt (1)		357,379		1,595,912		410,111		1,739,553


	July 4, 2021
	Available-for-Sale
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses
	(in thousands)
Commercial paper	$	225,409	$	7	$	(1	)	$	225,415	$	19,194
U.S. Treasury securities		102,068		767		(519	)		102,316		72,750
Corporate debt securities		79,586		5,814		(106	)		85,294		38,694
Debt mutual funds		7,956		74		—			8,030		—
U.S. government agency securities		4,490		22		(4	)		4,508		1,308
Certificates of deposit and time deposits		1,344		—		—			1,344		—
Non-U.S. government securities		616		—		—			616		—

	$	421,469	$	6,684	$	(630	)	$	427,523	$	131,946


	Balance Sheet Location		July 4, 2021			December 31, 2020
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Prepayments	$	25		$	95
Foreign exchange contracts		Other current liabilities		(365	)		(504	)

Total derivatives			$	(340	)	$	(409	)


	July 4, 2021
	Cost		Fair Market Value
	(in thousands)
Due within one year	$	282,061	$	282,121
Due after 1 year through 5 years		90,625		90,940
Due after 5 years through 10 years		6,089		6,585
Due after 10 years		34,738		39,847

Total	$	413,513	$	419,493


	Location of Losses (Gains) Recognized in Statement of Operations		For the Three Months Ended				For the Six Months Ended
			July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Other (income) expense, net	$	1,531	$	470	$	3,650	$	4,481


	For the Three Months Ended				For the Six Months Ended
	July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
	(in thousands)
Contractual interest expense on the coupon	$	1,072	$	1,438	$	2,311	$	2,875
Amortization of the discount component and debt issue fees recognized as interest expense		3,511		3,839		7,347		7,631

Total interest expense on the convertible debt	$	4,583	$	5,277	$	9,658	$	10,506


	For the Six Months Ended
	July 4, 2021	June 28, 2020

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%


	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Retirement Plans Prior Service Credit			Total
	(in thousands)
Six Months Ended July 4, 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, $(472), $0, respectively		(15,974	)		(1,776	)		—			(17,750	)
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(121), $(1), respectively		—			(441	)		(3	)		(444	)

Net current period other comprehensive loss, net of tax of $0, $(593), $(1), respectively		(15,974	)		(2,217	)		(3	)		(18,194	)

Balance at July 4, 2021, net of tax of $0, $1,317, $(1,127), respectively	$	9,415		$	4,737		$	1,170		$	15,322


Six Months Ended June 28, 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, $1,271, $0, respectively		7,026			4,830			—			11,856
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(421), $(1), respectively		—			(1,499	)		(3	)		(1,502	)

Net current period other comprehensive income (loss), net of tax of $0, $850, $(1), respectively		7,026			3,331			(3	)		10,354

Balance at June 28, 2020, net of tax of $0, $1,796, $(1,125), respectively	$	(16,488	)	$	6,811		$	1,177		$	(8,500	)


Details about Accumulated Other Comprehensive Income (Loss) Components	For the Three Months Ended					For the Six Months Ended				Affected Line Item in the Statements of Operations
	July 4, 2021			June 28, 2020		July 4, 2021		June 28, 2020
	(in thousands)
Available-for-sale marketable securities:
Unrealized (losses) gains, net of tax of $(2), $277, $121, $421, respectively	$	(3	)	$	983	$	441	$	1,499		Other (income) expense, net
Defined benefit post-retirement plan:
Amortization of prior service credit, net of tax of $0, $0, $1, $1, respectively		2			2		3		3		(a)

Total reclassifications, net of tax of $(2), $277, $122, $422, respectively	$	(1	)	$	985	$	444	$	1,502		Net income


	Industrial Automation			System Test			Wireless Test			Semiconductor Test			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		(12,191	)		—			—			(71	)		(12,262	)

Balance at July 4, 2021
Goodwill		421,561			158,699			361,819			262,084			1,204,163
Accumulated impairment losses		—			(148,183	)		(353,843	)		(260,540	)		(762,566	)

	$	421,561		$	10,516		$	7,976		$	1,544		$	441,597


	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net Carrying Amount
Balance at July 4, 2021		(in thousands)
Developed technology	$	272,547	$	(216,820	)	$	(2,779	)	$	52,948
Customer relationships		57,739		(47,780	)		191			10,150
Tradenames and trademarks		70,120		(45,187	)		90			25,023

Total intangible assets	$	400,406	$	(309,787	)	$	(2,498	)	$	88,121

Balance at 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


Year	Amortization Expense
	(in thousands)
2021(remainder)	$	10,636
2022		20,570
2023		20,084
2024		19,776
2025		11,756
Thereafter		5,299


	For the Three Months Ended						For the Six Months Ended
	July 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020
	(in thousands)
Service cost	$	17		$	17		$	33		$	28
Interest cost		41			58			85			120
Amortization of prior service credit		(2	)		(2	)		(4	)		(4	)
Net actuarial gain		(228	)		(279	)		(228	)		(279	)

Total net periodic postretirement benefit credit	$	(172	)	$	(206	)	$	(114	)	$	(135	)


Hypothetical Change in Teradyne Stock Price	Fair Value		Estimated change in fair value			Hypothetical percentage increase (decrease) in fair value
10% Increase	$	1,756,039	$	160,127			10.0	%
No Change		1,595,912		—			—
10% Decrease		1,435,785		(160,127	)		(10.0	)


Period	(a) Total Number of Shares (or Units) Purchased				(b) Average Price Paid per Share (or Unit)				(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may Yet Be Purchased Under the Plans or Programs
April 5, 2021 - May 2, 2021		155			$	129.70				154	$	1,934,813
May 3, 2021 – May 30, 2021		431			$	123.16				424	$	1,882,615
May 31, 2021 – July 4, 2021		613			$	129.49				612	$	1,803,416

		1,199	(1	)	$	127.25	(1	)		1,190


Exhibit Number		Description

3.1		Restated Articles of Organization of Teradyne, Inc., effective May 7, 2021 filed as Exhibit 3.1 to Teradyne’s Current Report on Form 8-K filed on May 13, 2021

10.1		1996 Employee Stock Purchase Plan, as amended, filed as Exhibit 10.1 to Teradyne’s Current Report on form 8-K filed May 13, 2021

10.2		2006 Equity and Cash Compensation Incentive Plan, as amended, filed as Exhibit 10.2 to Teradyne’s Current Report on Form 8-K filed May 13, 2021

31.1		Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2		Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL, and contained in Exhibit 101)