TER 10-Q

Teradyne, Inc (TER)

10-Q 2022-11-04 For: 2022-10-02

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Added on April 10, 2026

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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




Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Emerging growth company	☐

Smaller reporting company	☐


		Page No.
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets as of October 2, 2022 and December 31, 2021		1
	Condensed Consolidated Statements of Operations for the Three and Nine Months ended October 2, 2022 and October 3, 2021		2
	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months ended October 2, 2022 and October 3, 2021		3
	Condensed Consolidated Statements of Convertible Common Shares and Shareholders’ Equity for the Three and Nine Months ended October 2, 2022 and October 3, 2021		4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended October 2, 2022 and October 3, 2021		5
	Notes to Condensed Consolidated Financial Statements		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		30
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		41
Item 4.	Controls and Procedures		42

	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		42
Item 1A.	Risk Factors		42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		44
Item 4.	Mine Safety Disclosures		45
Item 6.	Exhibits		46


	October 2, 2022			December 31, 2021
	(in thousands, except per share amount)

ASSETS
Current assets:
Cash and cash equivalents	$	710,746		$	1,122,199
Marketable securities		65,310			244,231
Accounts receivable, less allowance for credit losses of $1,865 and $2,012 at October 2, 2022 and December 31, 2021, respectively		530,349			550,749
Inventories, net		310,754			243,330
Prepayments		502,678			406,266
Other current assets		7,717			9,452

Total current assets		2,127,554			2,576,227
Property, plant and equipment, net		415,181			387,240
Operating lease right-of-use assets, net		61,430			68,807
Marketable securities		111,039			133,858
Deferred tax assets		130,207			102,428
Retirement plans assets		13,805			15,110
Other assets		29,311			24,096
Acquired intangible assets, net		55,580			75,635
Goodwill		375,799			426,024

Total assets	$	3,319,906		$	3,809,425


LIABILITIES
Current liabilities:
Accounts payable	$	167,975		$	153,133
Accrued employees’ compensation and withholdings		168,102			253,667
Deferred revenue and customer advances		143,591			146,185
Other accrued liabilities		126,457			124,187
Operating lease liabilities		17,079			19,977
Income taxes payable		64,141			88,789
Current debt		14,596			19,182

Total current liabilities		701,941			805,120
Retirement plans liabilities		137,317			151,141
Long-term deferred revenue and customer advances		48,488			54,921
Long-term other accrued liabilities		15,506			15,497
Deferred tax liabilities		1,327			6,327
Long-term operating lease liabilities		51,872			56,178
Long-term incomes taxes payable		59,135			67,041
Debt		50,195			89,244

Total liabilities		1,065,781			1,245,469

Commitments and contingencies (Note Q)
Mezzanine equity:
Convertible common shares		—			1,512

SHAREHOLDERS’ EQUITY
Common stock , $0.125 par value, 1,000,000 shares authorized; 155,782 and 162,251 shares issued and outstanding at October 2, 2022 and December 31, 2021, respectively		19,473			20,281
Additional paid-in capital		1,746,779			1,811,545
Accumulated other comprehensive loss		(84,779	)		(5,948	)
Retained earnings		572,652			736,566

Total shareholders’ equity		2,254,125			2,562,444

Total liabilities, convertible common shares and shareholders’ equity	$	3,319,906		$	3,809,425

TER 10-Q

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	For the Three Months Ended						For the Nine Months Ended
	October 2, 2022			October 3, 2021			October 2, 2022			October 3, 2021
	(in thousands, except per share amount)
Revenues:
Products	$	676,252		$	825,448		$	2,000,081		$	2,437,901
Services		150,821			125,053			423,128			379,934

Total revenues		827,073			950,501			2,423,209			2,817,835
Cost of revenues:
Cost of products		277,539			333,229			795,229			989,859
Cost of services		64,155			46,271			181,279			148,368

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		341,694			379,500			976,508			1,138,227

Gross profit		485,379			571,001			1,446,701			1,679,608
Operating expenses:
Selling and administrative		135,632			134,829			415,351			404,812
Engineering and development		111,715			107,220			331,781			317,644
Acquired intangible assets amortization		4,729			5,355			14,663			16,293
Restructuring and other		1,796			1,197			19,554			(3,426	)

Total operating expenses		253,872			248,601			781,349			735,323

Income from operations		231,507			322,400			665,352			944,285
Non-operating (income) expense:
Interest income		(1,318	)		(626	)		(2,972	)		(2,066	)
Interest expense		779			3,785			2,704			15,354
Other (income) expense, net		5,849			21,486			20,472			25,223

Income before income taxes		226,197			297,755			645,148			905,774
Income tax provision		42,712			41,037			101,948			115,225

Net income	$	183,485		$	256,718		$	543,200		$	790,549

Net income per common share:
Basic	$	1.17		$	1.56		$	3.41		$	4.77

Diluted	$	1.10		$	1.41		$	3.17		$	4.26

Weighted average common shares—basic		156,364			164,583			159,325			165,690

Weighted average common shares—diluted		166,733			181,987			171,156			185,492


				Shareholders’ Equity
	Convertible Common Shares Value			Common Stock Shares			Common Stock Par Value			Additional Paid-in Capital			Accumulated Other Comprehensive (Loss) Income			Retained Earnings			Total Shareholders’ Equity
				(in thousands)

For the Three Months Ended October 2, 2022
Balance, July 3, 2022	$	—			157,880		$	19,735		$	1,721,586		$	(52,959	)	$	610,234		$	2,298,596
Net issuance of common stock under stock-based plans					169			21			12,031									12,052
Stock-based compensation expense											13,194									13,194
Repurchase of common stock					(2,267	)		(283	)								(203,918	)		(204,201	)
Cash dividends ($ 0.11 per share)																	(17,149	)		(17,149	)
Settlements of convertible notes					207			26			(58	)								(32	)
Exercise of convertible notes hedge call options					(207	)		(26	)		26									—
Net income																	183,485			183,485
Other comprehensive loss														(31,820	)					(31,820	)

Balance, October 2, 2022	$	—			155,782		$	19,473		$	1,746,779		$	(84,779	)	$	572,652		$	2,254,125

For the Three Months Ended October 3, 2021
Balance, July 4, 2021	$	21,386			165,444		$	20,680		$	1,772,302		$	15,322		$	684,952		$	2,493,256
Net issuance of common stock under stock-based plans					8			1			(259	)								(258	)
Stock-based compensation expense											10,042									10,042
Repurchase of common stock					(1,724	)		(215	)								(212,781	)		(212,996	)
Cash dividends ($0.10 per share)																	(16,452	)		(16,452	)
Settlements of convertible notes					5,589			699			636,798									637,497
Exercise of convertible notes hedge call options					(5,589	)		(699	)		(637,015	)								(637,714	)
Convertible common shares		(18,505	)								18,505									18,505
Net income																	256,718			256,718
Other comprehensive loss														(11,105	)					(11,105	)

Balance, October 3, 2021	$	2,881			163,728		$	20,466		$	1,800,373		$	4,217		$	712,437		$	2,537,493

For the Nine Months Ended October 2, 2022
Balance, December 31, 2021	$	1,512			162,251		$	20,281		$	1,811,545		$	(5,948	)	$	736,566		$	2,562,444
Net issuance of common stock under stock-based plans					754			95			(4,287	)								(4,192	)
Stock-based compensation expense											39,056									39,056
Repurchase of common stock					(7,223	)		(903	)								(749,097	)		(750,000	)
Cash dividends ($0.33 per share)																	(52,617	)		(52,617	)
Settlements of convertible notes					1,211			151			(364	)								(213	)
Exercise of convertible notes hedge call options					(1,211	)		(151	)		151									—
Convertible common shares		(1,512	)								1,512									1,512
Cumulative-effect of change in accounting principle related to convertible debt											(100,834	)					94,600			(6,234	)
Net income																	543,200			543,200
Other comprehensive loss														(78,831	)					(78,831	)

Balance, October 2, 2022	$	—			155,782		$	19,473		$	1,746,779		$	(84,779	)	$	572,652		$	2,254,125

For the Nine Months Ended October 3, 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					893			112			(48	)								64
Stock-based compensation expense											35,915									35,915
Repurchase of common stock					(3,288	)		(411	)								(415,769	)		(416,180	)
Cash dividends ($0.30 per share)																	(49,757	)		(49,757	)
Settlements of convertible notes					7,178			897			840,305									841,202
Exercise of convertible notes hedge call options					(7,178	)		(897	)		(842,028	)								(842,925	)
Convertible common shares		(906	)								906									906
Net income																	790,549			790,549
Other comprehensive loss														(29,299	)					(29,299	)

Balance, October 3, 2021	$	2,881			163,728		$	20,466		$	1,800,373		$	4,217		$	712,437		$	2,537,493


	Semiconductor Test						Industrial Automation
	System on-a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		Wireless Test		Corporate and Eliminations			Total
	(in thousands)
For the Three Months Ended October 2, 2022 (1)
Timing of Revenue Recognition
Point in Time	$	383,801	$	117,943	$	93,248	$	71,300	$	15,025	$	42,885	$	—		$	724,202
Over Time		66,614		7,346		22,906		2,062		680		3,263		—			102,871

Total	$	450,415	$	125,289	$	116,154	$	73,362	$	15,705	$	46,148	$	—		$	827,073

Geographical Market
Asia Pacific	$	399,323	$	122,839	$	73,768	$	18,850	$	2,917	$	34,420	$	—		$	652,117
Americas		31,719		2,129		35,865		26,515		8,877		9,481		—			114,586
Europe, Middle East and Africa		19,373		321		6,521		27,997		3,911		2,247		—			60,370

Total	$	450,415	$	125,289	$	116,154	$	73,362	$	15,705	$	46,148	$	—		$	827,073

For the Three Months Ended October 3, 2021 (1)
Timing of Revenue Recognition
Point in Time	$	508,747	$	105,454	$	88,155	$	76,008	$	12,577	$	65,409	$	(63	)	$	856,287
Over Time		66,270		7,761		14,450		1,742		687		3,304		—			94,214

Total	$	575,017	$	113,215	$	102,605	$	77,750	$	13,264	$	68,713	$	(63	)	$	950,501

Geographical Market
Asia Pacific	$	519,886	$	110,362	$	62,757	$	19,654	$	2,788	$	54,344	$	—		$	769,791
Americas		29,119		2,281		34,560		23,429		5,321		11,352		(63	)		105,999
Europe, Middle East and Africa		26,012		572		5,288		34,667		5,155		3,017		—			74,711

Total	$	575,017	$	113,215	$	102,605	$	77,750	$	13,264	$	68,713	$	(63	)	$	950,501

For the Nine Months Ended October 2, 2022 (2)
Timing of Revenue Recognition
Point in Time	$	1,102,467	$	281,456	$	317,230	$	234,352	$	49,570	$	152,079	$	—		$	2,137,154
Over Time		193,996		21,473		52,295		6,268		2,582		9,441		—			286,055

Total	$	1,296,463	$	302,929	$	369,525	$	240,620	$	52,152	$	161,520	$	—		$	2,423,209

Geographical Market
Asia Pacific	$	1,153,599	$	294,986	$	243,135	$	54,828	$	10,826	$	113,472	$	—		$	1,870,846
Americas		90,148		6,727		105,884		81,857		24,670		36,628		—			345,914
Europe, Middle East and Africa		52,716		1,216		20,506		103,935		16,656		11,420		—			206,449

Total	$	1,296,463	$	302,929	$	369,525	$	240,620	$	52,152	$	161,520	$	—		$	2,423,209


	Semiconductor Test						Industrial Automation
	System on-a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		Wireless Test		Corporate and Eliminations			Total
	(in thousands)
For the Nine Months Ended October 3, 2021 (2)
Timing of Revenue Recognition
Point in Time	$	1,548,895	$	291,578	$	295,666	$	214,427	$	41,612	$	154,908	$	(352	)	$	2,546,734
Over Time		188,022		21,776		44,595		5,001		2,111		9,596		—			271,101

Total	$	1,736,917	$	313,354	$	340,261	$	219,428	$	43,723	$	164,504	$	(352	)	$	2,817,835

Geographical Market
Asia Pacific	$	1,618,117	$	301,562	$	223,507	$	55,531	$	8,674	$	133,678	$	—		$	2,341,069
Americas		71,562		9,373		98,475		66,390		17,799		24,228		(352	)		287,475
Europe, Middle East and Africa		47,238		2,419		18,279		97,507		17,250		6,598		—			189,291

Total	$	1,736,917	$	313,354	$	340,261	$	219,428	$	43,723	$	164,504	$	(352	)	$	2,817,835


	October 2, 2022		December 31, 2021
	(in thousands)
Maintenance, service and training	$	76,310	$	81,826
Extended warranty		61,920		64,168
Customer advances, undelivered elements and other		53,849		55,112

Total deferred revenue and customer advances	$	192,079	$	201,106


	October 2, 2022
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Assets
Cash	$	464,744	$	—	$	—	$	464,744
Cash equivalents		51,243		194,759		—		246,002
Available-for-sale securities:
U.S. Treasury securities		—		65,354		—		65,354
Corporate debt securities		—		45,864		—		45,864
Commercial paper		—		17,719		—		17,719
Debt mutual funds		6,441		—		—		6,441
U.S. government agency securities		—		4,681		—		4,681
Certificates of deposit and time deposits		—		1,205		—		1,205
Non-U.S. government securities		—		512		—		512
Equity securities:
Mutual funds		34,573		—		—		34,573

	$	557,001	$	330,094	$	—	$	887,095
Derivative assets		—		546		—		546

Total	$	557,001	$	330,640	$	—	$	887,641

Liabilities
Derivative liabilities	$	—	$	1,106	$	—	$	1,106

Total	$	—	$	1,106	$	—	$	1,106


Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	515,987	$	194,759	$	—	$	710,746
Marketable securities		—		65,310		—		65,310
Long-term marketable securities		41,014		70,025		—		111,039
Prepayments and other current assets		—		546		—		546

Total	$	557,001	$	330,640	$	—	$	887,641

Liabilities		.
Other cur r ent liabilities	$	—	$	1,106	$	—	$	1,106

Total	$	—	$	1,106	$	—	$	1,106


	October 2, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value

	(in thousands)
Assets
Cash and cash equivalents	$	710,746	$	710,746	$	1,122,199	$	1,122,199
Marketable securities		176,349		176,349		378,089		378,089
Derivative assets		546		546		92		92
Liabilities
Derivative liabilities		1,106		1,106		118		118
Convertible debt		64,791		154,486		108,426		604,648


	October 2, 2022
	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	$	69,598	$	—	$	(4,244	)	$	65,354	$	65,354
Corporate debt securities		52,926		1		(7,063	)		45,864		45,622
Commercial paper		17,691		35		(7	)		17,719		8,983
Debt mutual funds		6,897		—		(456	)		6,441		3,075
U.S. government agency securities		4,790		—		(109	)		4,681		4,681
Certificates of deposit and time deposits		1,205		—		—			1,205		—
Non-U.S. government securities		512		—		—			512		—

	$	153,619	$	36	$	(11,879	)	$	141,776	$	127,715


	October 2, 2022
	Cost		Fair Market Value
	(in thousands)

Due within one year	$	65,744	$	65,310
Due after 1 year through 5 years		35,934		34,116
Due after 5 years through 10 years		4,800		4,209
Due after 10 years		40,244		31,700

Total	$	146,722	$	135,335


	October 2, 2022								December 31, 2021
	Buy Position			Sell Position		Net Total			Buy Position			Sell Position		Net Total
	(in millions)
Japanese Yen	$	(37.5	)	$	—	$	(37.5	)	$	(31.4	)	$	—	$	(31.4	)
Taiwan Dollar		(35.2	)		—		(35.2	)		(35.1	)		—		(35.1	)
Korean Won		(5.4	)		—		(5.4	)		(4.2	)		—		(4.2	)
British Pound Sterling		(1.1	)		—		(1.1	)		(1.8	)		—		(1.8	)
Danish Krone		(0.5	)		—		(0.5	)		—			—		—
Singapore Dollar		—			24.4		24.4			—			61.9		61.9
Euro		—			36.7		36.7			—			44.9		44.9
Philippine Peso		—			2.8		2.8			—			3.9		3.9
Chinese Yuan		—			2.4		2.4			—			2.8		2.8

Total	$	(79.7	)	$	66.3	$	(13.4	)	$	(72.5	)	$	113.5	$	41.0


	For the Three Months Ended						For the Nine Months Ended
	October 2, 2022			October 3, 2021			October 2, 2022			October 3, 2021
	(in thousands)
Net income	$	183,485		$	256,718		$	543,200		$	790,549
Other comprehensive income, net of tax:
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively		(28,951	)		(10,698	)		(66,258	)		(26,672	)
Available-for-sale marketable securities:
Unrealized losses arising during period, net of tax of $(997), $(44), $(3,570), $(516), respectively		(3,581	)		(176	)		(13,491	)		(1,952	)
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $(11), $(65), $48, $(186), respectively		177			(229	)		386			(670	)

		(3,404	)		(405	)		(13,105	)		(2,622	)
Cash flow hedges:
Unrealized gains arising during period, net of tax of $0, $0, $0, $0, respectively		537			—			537			—
Defined benefit post-retirement plan:
Amortization of prior service credit, net of tax of $0, $0, $(2), $(2), respectively		(2	)		(2	)		(5	)		(5	)

Other comprehensive loss		(31,820	)		(11,105	)		(78,831	)		(29,299	)

Comprehensive income	$	151,665		$	245,613		$	464,369		$	761,250


	For the Nine Months Ended
	October 2, 2022			October 3, 2021
	(in thousands)
Cash flows from operating activities:
Net income	$	543,200		$	790,549
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Depreciation		67,902			67,866
Stock-based compensation		37,420			34,649
Provision for excess and obsolete inventory		18,929			11,775
Amortization		15,012			27,626
Losses (gains) on investments		11,436			(4,750	)
Deferred taxes		(28,373	)		(10,732	)
Contingent consideration fair value adjustments		—			(7,227	)
Loss on convertible debt conversions		—			25,397
Retirement plans actuarial gains		—			(627	)
Other		740			243
Changes in operating assets and liabilities
Accounts receivable		4,248			(103,299	)
Inventories		(68,817	)		21,943
Prepayments and other assets		(94,331	)		(138,564	)
Accounts payable and other liabilities		(71,682	)		65,064
Deferred revenue and customer advances		(5,896	)		8,699
Retirement plans contributions		(3,897	)		(4,123	)
Income taxes		(31,370	)		(17,406	)

Net cash provided by operating activities		394,521			767,083

Cash flows from investing activities:
Purchases of property, plant and equipment		(128,672	)		(103,162	)
Purchases of marketable securities		(267,175	)		(509,470	)
Proceeds from sales of marketable securities		259,200			209,437
Proceeds from maturities of marketable securities		182,092			571,277
Purchase of investment		—			(12,000	)

Net cash provided by investing activities		45,445			156,082

Cash flows from financing activities:
Issuance of common stock under stock purchase and stock option plans		28,733			32,590
Repurchase of common stock		(750,000	)		(406,180	)


	October 2, 2022		December 31, 2021
	(in thousands)

Raw material	$	228,762	$	155,641
Work-in-process		42,093		37,740
Finished goods		39,899		49,949

	$	310,754	$	243,330


	Balance Sheet Location		October 2, 2022			December 31, 2021
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts		Prepayments	$	9		$	92
Foreign currency forward contracts		Other current liabilities		(1,106	)		(118	)
Derivatives designated as hedging instruments:
Foreign currency option contracts		Prepayments		537			—
Total derivatives			$	(560	)	$	(26	)


	Location of Losses (Gains) Recognized in Statement of Operations	For the Three Months Ended				For the Nine Months Ended
		October 2, 2022		October 3, 2021		October 2, 2022			October 3, 2021
		(in thousands)


Derivatives not designated as hedging instruments:

Foreign currency forward contracts	Other (income) expense, net	$	1,246	$	2,288	$	(2,209	)	$	5,937
Derivatives designated as hedging instruments:
Foreign currency option contracts	Revenue		—		—		—			—

Total derivatives		$	1,246	$	2,288	$	(2,209	)	$	5,937


	For the Three Months Ended				For the Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
	(in thousands)				(in thousands)

Contractual interest expense on the coupon	$	159	$	355	$	592	$	2,666
Amortization of debt issuance fees recognized as interest expense (2)		43		2,424		173		9,771

Total interest expense on the convertible debt	$	202	$	2,779	$	765	$	12,437


	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Unrealized Gains on Cash Flow Hedges		Retirement Plans Prior Service Credit			Total
	(in thousands)
Nine Months Ended October 2, 2022

Balance at December 31, 2021, net of tax of $0, $1,055, $0, $(1,128), respectively	$	(10,818	)	$	3,704		$	—	$	1,166		$	(5,948	)
Other comprehensive (loss) gain before reclassifications, net of tax of $0, $(3,570), $0, $0, respectively		(66,258	)		(13,491	)		537		—			(79,212	)
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $48, $0, $(2), respectively		—			386			—		(5	)		381

Net current period other comprehensive (loss) gain, net of tax of $0, $(3,522), $0, $(2), respectively		(66,258	)		(13,105	)		537		(5	)		(78,831	)

Balance at October 2, 2022, net of tax of $0, $(2,467), $0, $(1,130), respectively	$	(77,076	)	$	(9,401	)	$	537	$	1,161		$	(84,779	)

Nine Months Ended October 3, 2021
Balance at December 31, 2020, net of tax of $0, $1,910, $0, $(1,126), respectively	$	25,389		$	6,954		$	—	$	1,173		$	33,516
Other comprehensive loss before reclassifications, net of tax of $0, $(516), $0, $0, respectively		(26,672	)		(1,952	)		—		—			(28,624	)
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(186), $0, $(2), respectively		—			(670	)		—		(5	)		(675	)

Net current period other comprehensive loss, net of tax of $0, $(702), $0, $(2), respectively		(26,672	)		(2,622	)		—		(5	)		(29,299	)

Balance at October 3, 2021, net of tax of $0, $1,208, $0, $(1,128), respectively	$	(1,283	)	$	4,332		$	—	$	1,168		$	4,217


Details about Accumulated Other Comprehensive Income (Loss) Components	For the Three Months Ended					For the Nine Months Ended					Affected Line Item in the Statements of Operations
	October 2, 2022			October 3, 2021		October 2, 2022			October 3, 2021
	(in thousands)
Available-for-sale marketable securities:
Unrealized (losses) gains, net of tax of $11, $65, $(48 ) , $186, respectively	$	(177	)	$	229	$	(386	)	$	670		Other (income) expense, net
Defined benefit postretirement plan:
Amortization of prior service credit, net of tax of $0, $0, $2, $2, respectively		2			2		5			5			(a)

Total reclassifications, net of tax of $11, $65, $46, $188, respectively	$	(175	)	$	231	$	(381	)	$	675		Net income


	Industrial Automation			Wireless Test			Semiconductor Test			System Test			Total
	(in thousands)
Balance at December 31, 2021

Goodwill	$	405,971		$	361,819		$	262,101		$	158,699		$	1,188,590
Accumulated impairment losses		—			(353,843	)		(260,540	)		(148,183	)		(762,566	)

Total Goodwill		405,971			7,976			1,561			10,516			426,024

Foreign currency translation adjustment		(50,126	)		—			(99	)		—			(50,225	)

Balance at October 2, 2022
Goodwill		355,845			361,819			262,002			158,699			1,138,365
Accumulated impairment losses		—			(353,843	)		(260,540	)		(148,183	)		(762,566	)

Total Goodwill	$	355,845		$	7,976		$	1,462		$	10,516		$	375,799


	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net Carrying Amount
	(in thousands)
Balance at October 2, 2022

Developed technology	$	272,547	$	(232,802	)	$	(7,620	)	$	32,125
Customer relationships		57,739		(50,623	)		126			7,242
Tradenames and trademarks		59,387		(40,809	)		(2,365	)		16,213

Total intangible assets	$	389,673	$	(324,234	)	$	(9,859	)	$	55,580

Balance, December 31, 2021
Developed technology	$	272,547	$	(223,413	)	$	(4,093	)	$	45,041
Customer relationships		57,739		(48,921	)		209			9,027
Tradenames and trademarks		59,387		(37,237	)		(583	)		21,567

Total intangible assets	$	389,673	$	(309,571	)	$	(4,467	)	$	75,635


Year	Amortization Expense
	(in thousands)
2022	$	4,592
2023		17,922
2024		17,617
2025		10,855
2026		2,262
Thereafter		2,332


	For the Three Months Ended
	October 2, 2022						October 3, 2021
	United States			Foreign			United States			Foreign
	(in thousands)
Service cost	$	397		$	153		$	452		$	240
Interest cost		1,222			96			1,098			86
Expected return on plan assets		(732	)		(16	)		(936	)		(17	)

Total net periodic pension cost	$	887		$	233		$	614		$	309


	For the Nine Months Ended
	October 2, 2022						October 3, 2021
	United States			Foreign			United States			Foreign
	(in thousands)
Service cost	$	1,191		$	539		$	1,357		$	720
Interest cost		3,665			333			3,295			257
Expected return on plan assets		(2,195	)		(54	)		(2,809	)		(50	)
Net actuarial gain		(45	)		—			(400	)		—

Total net periodic pension cost	$	2,616		$	818		$	1,443		$	927


	Semiconductor Test		System Test		Industrial Automation			Wireless Test		Corporate and Eliminations			Consolidated
	(in thousands)
Three Months Ended October 2, 2022

Revenues	$	575,704	$	116,154	$	89,067		$	46,148	$	—		$	827,073
Income (loss) before income taxes (1)(2)		182,625		40,201		(3,992	)		12,647		(5,284	)		226,197
Total assets (3)		1,366,478		192,684		614,558			110,484		1,035,702			3,319,906
Three Months Ended October 3, 2021
Revenues	$	688,232	$	102,605	$	91,014		$	68,713	$	(63	)	$	950,501
Income (loss) before income taxes (1)(2)		265,017		31,773		(4,226	)		31,726		(26,535	)		297,755
Total assets (3)		1,251,549		147,970		696,792			119,568		1,546,303			3,762,182
Nine Months Ended October 2, 2022
Revenues	$	1,599,392	$	369,525	$	292,772		$	161,520	$	—		$	2,423,209
Income (loss) before income taxes (1)(2)		510,112		135,566		(15,496	)		56,659		(41,693	)		645,148
Total assets (3)		1,366,478		192,684		614,558			110,484		1,035,702			3,319,906
Nine Months Ended October 3, 2021
Revenues	$	2,050,271	$	340,261	$	263,151		$	164,504	$	(352	)	$	2,817,835
Income (loss) before income taxes (1)(2)		778,687		116,788		(14,586	)		63,810		(38,925	)		905,774
Total assets (3)		1,251,549		147,970		696,792			119,568		1,546,303			3,762,182


Hypothetical Change in Teradyne Stock Price	Fair Value		Estimated change in fair value			Hypothetical percentage increase (decrease) in fair value
10% Increase	$	170,003	$	15,517			10.0	%
No Change		154,486		—			—
10% Decrease		138,990		(15,496	)		(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
July 4, 2022 - July 31, 2022		1,296		$	93.00			1,296	$	746,702,775
August 1, 2022 – August 28, 2022		972		$	99.56			971	$	650,000,254
August 29, 2022 – October 2, 2022		1		$	82.86			—	$	650,000,254

		2,269	(1)	$	95.81	(1)		2,267


Exhibit Number		Description

3.1		Amended and Restated Bylaws of Teradyne, Inc. effective September 6, 2022 filed as Exhibit 3.1 to Teradyne’s Current Report on Form 8-K filed on September 6, 2022.

10.1		Second Amendment to Credit Agreement dated December 10, 2021 among Teradyne, Inc., Truist Bank, as the administrative agent, issuing bank and swingline lender, and other lenders party thereto (filed herewith)

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		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

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