SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/05/22 Teradyne, Inc. 10-Q 7/03/22 108:13M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 2.73M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 31K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 31K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 28K 5: EX-32.2 Certification -- §906 - SOA'02 HTML 28K 11: R1 Cover Page HTML 81K 12: R2 Condensed Consolidated Balance Sheets HTML 166K 13: R3 Condensed Consolidated Balance Sheets HTML 38K (Parenthetical) 14: R4 Condensed Consolidated Statements of Operations HTML 133K 15: R5 Condensed Consolidated Statements of Comprehensive HTML 69K Income 16: R6 Condensed Consolidated Statements of Comprehensive HTML 38K Income (Parenthetical) 17: R7 Condensed Consolidated Statements of Convertible HTML 113K Common Shares and Shareholders'' Equity 18: R8 Condensed Consolidated Statements of Convertible HTML 29K Common Shares and Shareholders' Equity (Parenthetical) 19: R9 Condensed Consolidated Statements of Cash Flows HTML 130K 20: R10 The Company HTML 36K 21: R11 Accounting Policies HTML 35K 22: R12 Recently Issued Accounting Pronouncements HTML 39K 23: R13 Investment In Other Company HTML 32K 24: R14 Revenue HTML 203K 25: R15 Inventories HTML 38K 26: R16 Financial Instruments HTML 425K 27: R17 Debt HTML 78K 28: R18 Prepayments HTML 40K 29: R19 Product Warranty HTML 67K 30: R20 Stock-Based Compensation HTML 53K 31: R21 Accumulated Other Comprehensive Income HTML 82K 32: R22 Goodwill and Acquired Intangible Assets HTML 94K 33: R23 Net Income Per Common Share HTML 61K 34: R24 Restructuring and Other HTML 33K 35: R25 Retirement Plans HTML 85K 36: R26 Commitments and Contingencies HTML 38K 37: R27 Income Taxes HTML 52K 38: R28 Segment Information HTML 96K 39: R29 Shareholders' Equity HTML 38K 40: R30 Accounting Policies (Policies) HTML 38K 41: R31 Revenue (Tables) HTML 199K 42: R32 Inventories (Tables) HTML 39K 43: R33 Financial Instruments (Tables) HTML 429K 44: R34 Debt (Tables) HTML 59K 45: R35 Prepayments (Tables) HTML 40K 46: R36 Product Warranty (Tables) HTML 66K 47: R37 Stock-Based Compensation (Tables) HTML 44K 48: R38 Accumulated Other Comprehensive Income (Tables) HTML 83K 49: R39 Goodwill and Acquired Intangible Assets (Tables) HTML 100K 50: R40 Net Income Per Common Share (Tables) HTML 60K 51: R41 Retirement Plans (Tables) HTML 81K 52: R42 Income Taxes (Tables) HTML 47K 53: R43 Segment Information (Tables) HTML 91K 54: R44 Accounting Policies - Additional Information HTML 51K (Detail) 55: R45 Investment In Other Company - Additional HTML 34K Information (Details) 56: R46 Revenue - Additional Information (Detail) HTML 45K 57: R47 Disaggregated Revenue by Primary Geographical HTML 154K Market, Major Product Line and Timing of Revenue Recognition (Detail) 58: R48 Disaggregated Revenue by Primary Geographical HTML 31K Market, Major Product Line and Timing of Revenue Recognition (Parenthetical) (Detail) 59: R49 Deferred Revenue and Customer Advances (Detail) HTML 37K 60: R50 Composition of Inventories, Net (Detail) HTML 38K 61: R51 Inventories - Additional Information (Detail) HTML 31K 62: R52 Financial Instruments - Additional Information HTML 58K (Detail) 63: R53 Schedule of Fair Value of Financial Assets and HTML 129K Liabilities Measured on Recurring Basis (Detail) 64: R54 Schedule of Reported Financial Assets and HTML 71K Liabilities (Detail) 65: R55 Schedule of Changes in Fair Value of Level 3 HTML 35K Contingent Consideration (Detail) 66: R56 Schedule of Changes in Fair Value of Level 3 HTML 35K Contingent Consideration (Parenthetical) (Detail) 67: R57 Schedule of Carrying Amounts and Fair Values of HTML 48K Financial Instruments (Detail) 68: R58 Schedule of Available for Sale Marketable HTML 66K Securities (Detail) 69: R59 Schedule of Reported Available for Sale Marketable HTML 49K Securities (Detail) 70: R60 Contractual Maturities of Investments in Debt HTML 57K Securities Held (Detail) 71: R61 Schedule of Notional Amount of Derivatives HTML 62K (Detail) 72: R62 Schedule of Derivative Instruments in Statement of HTML 43K Financial Position at Fair Value (Detail) 73: R63 Schedule of Effect of Derivative Instruments in HTML 33K Statement of Operations Recognized (Detail) 74: R64 Debt - Additional Information (Detail) HTML 147K 75: R65 Components of Convertible Senior Notes (Detail) HTML 43K 76: R66 Interest Expense on Convertible Senior Notes HTML 37K (Detail) 77: R67 Interest Expense on Convertible Senior Notes HTML 31K (Parenthetical) (Detail) 78: R68 Prepayments (Detail) HTML 40K 79: R69 Product Warranty (Detail) HTML 39K 80: R70 Extended Product Warranty of Short and Long-Term HTML 36K Deferred Revenue and Customer Advances (Detail) 81: R71 Stock-Based Compensation - Additional Information HTML 88K (Detail) 82: R72 Schedule of Estimated Fair Value of TSR HTML 40K Performance-Based Restricted Stock Unit Awards Assumptions (Detail) 83: R73 Schedule of Estimated Fair Value of Stock Options HTML 40K Grant Using Black Scholes Option Pricing Model (Detail) 84: R74 Changes in Accumulated Other Comprehensive Income HTML 66K (Detail) 85: R75 Changes in Accumulated Other Comprehensive Income HTML 59K (Parenthetical) (Detail) 86: R76 Reclassifications Out of Accumulated Other HTML 42K Comprehensive Income (Loss) to Statements of Operations (Detail) 87: R77 Reclassifications Out of Accumulated Other HTML 37K Comprehensive Income (Loss) to Statements of Operations (Parenthetical) (Detail) 88: R78 Goodwill and Acquired Intangible Assets - HTML 32K Additional Information (Detail) 89: R79 Changes in Carrying Amount of Goodwill by Segment HTML 52K (Detail) 90: R80 Schedule of Amortizable Intangible Assets (Detail) HTML 48K 91: R81 Schedule of Estimated Intangible Asset HTML 42K Amortization Expense (Detail) 92: R82 Computation of Basic and Diluted Net Income Per HTML 79K Common Share (Detail) 93: R83 Net Income Per Common Share - Additional HTML 31K Information (Detail) 94: R84 Restructuring and Other - Additional Information HTML 46K (Detail) 95: R85 Retirement Plans - Additional Information (Detail) HTML 37K 96: R86 Schedule of Net Periodic Pension and HTML 58K Postretirement (income) Cost (Detail) 97: R87 Commitments and Contingencies - Additional HTML 45K Information (Detail) 98: R88 Schedule of Reconciliation of Effective Tax Rate HTML 50K (Detail) 99: R89 Income Taxes - Additional Information (Detail) HTML 41K 100: R90 Segment Information - Additional Information HTML 31K (Detail) 101: R91 Schedule of Segment Information (Detail) HTML 78K 102: R92 Schedule of Segment Reporting Information by HTML 54K Segment Charges (Detail) 103: R93 Shareholders' Equity - Additional Information HTML 51K (Detail) 106: XML IDEA XML File -- Filing Summary XML 199K 104: XML XBRL Instance -- d297974d10q_htm XML 4.60M 105: EXCEL IDEA Workbook of Financial Reports XLSX 198K 7: EX-101.CAL XBRL Calculations -- ter-20220703_cal XML 211K 8: EX-101.DEF XBRL Definitions -- ter-20220703_def XML 1.46M 9: EX-101.LAB XBRL Labels -- ter-20220703_lab XML 1.56M 10: EX-101.PRE XBRL Presentations -- ter-20220703_pre XML 1.52M 6: EX-101.SCH XBRL Schema -- ter-20220703 XSD 221K 107: JSON XBRL Instance as JSON Data -- MetaLinks 588± 875K 108: ZIP XBRL Zipped Folder -- 0001193125-22-213485-xbrl Zip 368K
10-Q |
i ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Massachusetts |
i 04-2272148 | |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
i 600 Riverpark Drive, i North Reading, i Massachusetts |
i 01864 | |
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
i Common Stock, par value $0.125 |
i TER |
i Nasdaq Stock Market LLC |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☐ | Emerging growth company | i ☐ | |||
Smaller reporting company | i ☐ |
Item 1: |
Financial Statements |
(in thousands, except per share amount) |
||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | i 572,023 | $ | i 1,122,199 | ||||
Marketable securities |
i 209,846 | i 244,231 | ||||||
Accounts receivable, less allowance for credit losses of $ i 1,849 and $ i 2,012 at July 3,
2022 and December 31, 2021, respectively |
i 683,739 | i 550,749 | ||||||
Inventories, net |
i 295,625 | i 243,330 | ||||||
Prepayments |
i 498,093 | i 406,266 | ||||||
Other current assets |
i 11,109 | i 9,452 | ||||||
|
|
|
|
|||||
Total current assets |
i 2,270,435 | i 2,576,227 | ||||||
Property, plant and equipment, net |
i 411,263 | i 387,240 | ||||||
Operating lease right-of-use |
i 66,661 | i 68,807 | ||||||
Marketable securities |
i 111,999 | i 133,858 | ||||||
Deferred tax assets |
i 126,639 | i 102,428 | ||||||
Retirement plans assets |
i 14,245 | i 15,110 | ||||||
Other assets |
i 26,942 | i 24,096 | ||||||
Acquired intangible assets, net |
i 62,509 | i 75,635 | ||||||
Goodwill |
i 397,733 | i 426,024 | ||||||
|
|
|
|
|||||
Total assets |
$ | i 3,488,426 | $ | i 3,809,425 | ||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | i 175,606 | $ | i 153,133 | ||||
Accrued employees’ compensation and withholdings |
i 190,506 | i 253,667 | ||||||
Deferred revenue and customer advances |
i 163,127 | i 146,185 | ||||||
Other accrued liabilities |
i 133,881 | i 124,187 | ||||||
Operating lease liabilities |
i 17,770 | i 19,977 | ||||||
Income taxes payable |
i 106,863 | i 88,789 | ||||||
Current debt |
i 9,632 | i 19,182 | ||||||
|
|
|
|
|||||
Total current liabilities |
i 797,385 | i 805,120 | ||||||
Retirement plans liabilities |
i 141,884 | i 151,141 | ||||||
Long-term deferred revenue and customer advances |
i 50,357 | i 54,921 | ||||||
Long-term other accrued liabilities |
i 15,530 | i 15,497 | ||||||
Deferred tax liabilities |
i 3,143 | i 6,327 | ||||||
Long-term operating lease liabilities |
i 57,600 | i 56,178 | ||||||
Long-term incomes taxes payable |
i 59,135 | i 67,041 | ||||||
Debt |
i 64,796 | i 89,244 | ||||||
|
|
|
|
|||||
Total liabilities |
i 1,189,830 | i 1,245,469 | ||||||
|
|
|
|
|||||
Commitments and contingencies (Note Q) |
i | i | ||||||
Mezzanine equity: |
||||||||
Convertible common shares |
— | i 1,512 | ||||||
SHAREHOLDERS’ EQUITY |
||||||||
Common stock, $ i i 0.125 /
par value, i i 1,000,000 / shares authorized; i i 157,880 /
and i i 162,251 / shares issued and outstanding at July 3,
2022 and December 31, 2021, respectively |
i 19,735 | i 20,281 | ||||||
Additional paid-in capital |
i 1,721,586 | i 1,811,545 | ||||||
Accumulated other comprehensive loss |
( i 52,959 | ) | ( i 5,948 | ) | ||||
Retained earnings |
i 610,234 | i 736,566 | ||||||
|
|
|
|
|||||
Total shareholders’ equity |
i 2,298,596 | i 2,562,444 | ||||||
|
|
|
|
|||||
Total liabilities, convertible common shares and shareholders’ equity |
$ | i 3,488,426 | $ | i 3,809,425 | ||||
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 3, |
July 4, |
July 3, |
||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
(in thousands, except per share amount) |
||||||||||||||||
Revenues: |
||||||||||||||||
Products |
$ | i 697,954 | $ | i 951,945 | $ | i 1,323,829 | $ | i 1,612,453 | ||||||||
Services |
i 142,812 | i 133,783 | i 272,307 | i 254,881 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
i 840,766 | i 1,085,728 | i 1,596,136 | i 1,867,334 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Cost of products |
i 274,674 | i 388,845 | i 517,690 | i 656,629 | ||||||||||||
Cost of services |
i 59,703 | i 49,894 | i 117,124 | i 102,098 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
i 334,377 | i 438,739 | i 634,814 | i 758,727 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
i 506,389 | i 646,989 | i 961,322 | i 1,108,607 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling and administrative |
i 139,533 | i 140,187 | i 279,718 | i 269,984 | ||||||||||||
Engineering and development |
i 111,951 | i 110,021 | i 220,067 | i 210,423 | ||||||||||||
Acquired intangible assets amortization |
i 4,871 | i 5,402 | i 9,934 | i 10,938 | ||||||||||||
Restructuring and other |
i 2,044 | i 2,507 | i 17,758 | ( i 4,623 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
i 258,399 | i 258,117 | i 527,477 | i 486,722 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from operations |
i 247,990 | i 388,872 | i 433,845 | i 621,885 | ||||||||||||
Non-operating (income) expense: |
||||||||||||||||
Interest income |
( i 951 | ) | ( i 633 | ) | ( i 1,653 | ) | ( i 1,441 | ) | ||||||||
Interest expense |
i 913 | i 5,566 | i 1,925 | i 11,569 | ||||||||||||
Other (income) expense, net |
i 9,436 | ( i 87 | ) | i 14,622 | i 3,738 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
i 238,592 | i 384,026 | i 418,951 | i 608,019 | ||||||||||||
Income tax provision |
i 40,805 | i 55,707 | i 59,236 | i 74,188 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | i 197,787 | $ | i 328,319 | $ | i 359,715 | $ | i 533,831 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ | i 1.24 | $ | i 1.98 | $ | i 2.24 | $ | i 3.21 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | i 1.16 | $ | i 1.76 | $ | i 2.07 | $ | i 2.85 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares—basic |
i 159,563 | i 165,995 | i 160,805 | i 166,243 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares—diluted |
i 171,159 | i 186,750 | i 173,367 | i 187,245 | ||||||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 3, |
July 4, |
July 3, |
||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
(in thousands) |
||||||||||||||||
Net income |
$ | i 197,787 | $ | i 328,319 | $ | i 359,715 | $ | i 533,831 | ||||||||
Other comprehensive income, net of tax: |
||||||||||||||||
Foreign currency translation adjustment, net of tax of $ i 0, $ i 0,
$ i 0, $ i 0, respectively
|
( i 29,230 | ) | i 5,150 | ( i 37,307 | ) | ( i 15,974 | ) | |||||||||
Available-for-sale |
||||||||||||||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $( i 1,240), $ i 436,
$( i 2,573), and $( i 472),
respectively |
( i 4,522 | ) | i 1,494 | ( i 9,910 | ) | ( i 1,776 | ) | |||||||||
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $ i 77, $ i 2,
$ i 59, $( i 121),
respectively |
i 274 | i 3 | i 209 | ( i 441 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
( i 4,248 | ) | i 1,497 | ( i 9,701 | ) | ( i 2,217 | ) | ||||||||||
Defined benefit post-retirement plan: |
||||||||||||||||
Amortization of prior service credit, net of tax of $ i 0, $ i 0,
$( i 1), $( i 1),
respectively |
( i 2 | ) | ( i 2 | ) | ( i 3 | ) | ( i 3 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive (loss) income |
( i 33,480 | ) | i 6,645 | ( i 47,011 | ) | ( i 18,194 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | i 164,307 | $ | i 334,964 | $ | i 312,704 | $ | i 515,637 | ||||||||
|
|
|
|
|
|
|
|
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 July 3, 2022 |
||||||||||||||||||||||||||||
Balance, April 3, 2022 |
$ | i — | i 161,053 | $ | i 20,132 | $ | i 1,711,690 | $ | ( i 19,479 | ) | $ | i 762,189 | $ | i 2,474,532 | ||||||||||||||
Net issuance of common stock under stock-based plans |
i 33 | i 4 | ( i 1,675 | ) | ( i 1,671 | ) | ||||||||||||||||||||||
Stock-based compensation expense |
i 11,658 | i 11,658 | ||||||||||||||||||||||||||
Repurchase of common stock |
( i 3,206 | ) | ( i 401 | ) | ( i 333,933 | ) | ( i 334,334 | ) | ||||||||||||||||||||
Cash dividends ($ i 0.11 per share) |
( i 17,561 | ) | ( i 17,561 | ) | ||||||||||||||||||||||||
Settlements of convertible notes |
i 495 | i 62 | ( i 149 | ) | ( i 87 | ) | ||||||||||||||||||||||
Exercise of convertible notes hedge call options |
( i 495 | ) | ( i 62 | ) | i 62 | i — | ||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt |
i 1,752 | i 1,752 | ||||||||||||||||||||||||||
Net income |
i 197,787 | i 197,787 | ||||||||||||||||||||||||||
Other comprehensive loss |
( i 33,480 | ) | ( i 33,480 | ) | ||||||||||||||||||||||||
Balance, July 3, 2022 |
$ | i — | i 157,880 | $ | i 19,735 | $ | i 1,721,586 | $ | ( i 52,959 | ) | $ | i 610,234 | $ | i 2,298,596 | ||||||||||||||
For the Three Months Ended July 4, 2021 |
||||||||||||||||||||||||||||
Balance, April 4, 2021 |
$ | i 1,233 | i 166,419 | $ | i 20,802 | $ | i 1,765,971 | $ | i 8,677 | $ | i 529,103 | $ | i 2,324,553 | |||||||||||||||
Net issuance of common stock under stock-based plans |
i 215 | i 27 | i 14,283 | i 14,310 | ||||||||||||||||||||||||
Stock-based compensation expense |
i 12,515 | i 12,515 | ||||||||||||||||||||||||||
Repurchase of common stock |
( i 1,190 | ) | ( i 149 | ) | ( i 155,846 | ) | ( i 155,995 | ) | ||||||||||||||||||||
Cash dividends ($ i 0.10 per share) |
( i 16,624 | ) | ( i 16,624 | ) | ||||||||||||||||||||||||
Settlements of convertible notes |
i 367 | i 46 | i 45,977 | i 46,023 | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options |
( i 367 | ) | ( i 46 | ) | ( i 46,291 | ) | ( i 46,337 | ) | ||||||||||||||||||||
Convertible common shares |
i 20,153 | ( i 20,153 | ) | ( i 20,153 | ) | |||||||||||||||||||||||
Net income |
i 328,319 | i 328,319 | ||||||||||||||||||||||||||
Other comprehensive income |
i 6,645 | i 6,645 | ||||||||||||||||||||||||||
Balance, July 4, 2021 |
$ | i 21,386 | i 165,444 | $ | i 20,680 | $ | i 1,772,302 | $ | i 15,322 | $ | i 684,952 | $ | i 2,493,256 | |||||||||||||||
For the Six Months Ended July 3, 2022 |
||||||||||||||||||||||||||||
Balance, December 31, 2021 |
$ | i 1,512 | i 162,251 | $ | i 20,281 | $ | i 1,811,545 | $ | ( i 5,948 | ) | $ | i 736,566 | $ | i 2,562,444 | ||||||||||||||
Net issuance of common stock under stock-based plans |
i 585 | i 73 | ( i 16,318 | ) | ( i 16,245 | ) | ||||||||||||||||||||||
Stock-based compensation expense |
i 25,862 | i 25,862 | ||||||||||||||||||||||||||
Repurchase of common stock |
( i 4,956 | ) | ( i 619 | ) | ( i 545,179 | ) | ( i 545,798 | ) | ||||||||||||||||||||
Cash dividends ($ i 0.22 per share) |
( i 35,470 | ) | ( i 35,470 | ) | ||||||||||||||||||||||||
Settlements of convertible notes |
i 1,004 | i 125 | ( i 306 | ) | ( i 181 | ) | ||||||||||||||||||||||
Exercise of convertible notes hedge call options |
( i 1,004 | ) | ( i 125 | ) | i 125 | i — | ||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt |
( i 1,512 |
) |
( i 99,322 | ) | i 94,602 | ( i 4,720 | ) | |||||||||||||||||||||
Net income |
i 359,715 | i 359,715 | ||||||||||||||||||||||||||
Other comprehensive loss |
( i 47,011 | ) | ( i 47,011 | ) | ||||||||||||||||||||||||
Balance, July 3, 2022 |
$ | i — | i 157,880 | $ | i 19,735 | $ | i 1,721,586 | $ | ( i 52,959 | ) | $ | i 610,234 | $ | i 2,298,596 | ||||||||||||||
For the Six Months Ended July 4, 2021 |
||||||||||||||||||||||||||||
Balance, December 31, 2020 |
$ | i 3,787 | i 166,123 | $ | i 20,765 | $ | i 1,765,323 | $ | i 33,516 | $ | i 387,414 | $ | i 2,207,018 | |||||||||||||||
Net issuance of common stock under stock-based plans |
i 885 | i 111 | i 211 | i 322 | ||||||||||||||||||||||||
Stock-based compensation expense |
i 25,874 | i 25,874 | ||||||||||||||||||||||||||
Repurchase of common stock |
( i 1,564 | ) | ( i 196 | ) | ( i 202,988 | ) | ( i 203,184 | ) | ||||||||||||||||||||
Cash dividends ($ i 0.20 per share) |
( i 33,305 | ) | ( i 33,305 | ) | ||||||||||||||||||||||||
Settlements of convertible notes |
i 1,589 | i 199 | i 203,507 | i 203,706 | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options |
( i 1,589 | ) | ( i 199 | ) | ( i 205,014 | ) | ( i 205,213 | ) | ||||||||||||||||||||
Convertible common shares |
i 17,599 | ( i 17,599 | ) | ( i 17,599 | ) | |||||||||||||||||||||||
Net income |
i 533,831 | i 533,831 | ||||||||||||||||||||||||||
Other comprehensive loss |
( i 18,194 | ) | ( i 18,194 | ) | ||||||||||||||||||||||||
Balance, July 4, 2021 |
$ | i 21,386 | i 165,444 | $ | i 20,680 | $ | i 1,772,302 | $ | i 15,322 | $ | i 684,952 | $ | i 2,493,256 | |||||||||||||||
For the Six Months Ended |
||||||||
July 3, |
||||||||
2021 |
||||||||
(in thousands) |
||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | i 359,715 | $ | i 533,831 | ||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: |
||||||||
Depreciation |
i 44,460 | i 45,848 | ||||||
Stock-based compensation |
i 25,122 | i 23,231 | ||||||
Amortization |
i 10,095 | i 19,343 | ||||||
Losses (gains) on investments |
i 8,973 | ( i 4,650 | ) | |||||
Provision for excess and obsolete inventory |
i 6,695 | i 3,625 | ||||||
Deferred taxes |
( i 23,597 | ) | ( i 800 | ) | ||||
Contingent consideration fair value adjustments |
i — | ( i 7,227 | ) | |||||
Loss on convertible debt conversions |
i — | i 5,244 | ||||||
Retirement plans actuarial gains |
i — | ( i 627 | ) | |||||
Other |
i 522 | i 199 | ||||||
Changes in operating assets and liabilities |
||||||||
Accounts receivable |
( i 146,384 | ) | ( i 372,698 | ) | ||||
Inventories |
( i 46,682 | ) | i 19,908 | |||||
Prepayments and other assets |
( i 94,751 | ) | ( i 117,416 | ) | ||||
Accounts payable and other liabilities |
( i 43,611 | ) | i 86,790 | |||||
Deferred revenue and customer advances |
i 14,163 | i 15,189 | ||||||
Retirement plans contributions |
( i 2,618 | ) | ( i 2,739 | ) | ||||
Income taxes |
i 10,815 | ( i 2,628 | ) | |||||
|
|
|
|
|||||
Net cash provided by operating activities |
i 122,917 | i 244,423 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Purchases of property, plant and equipment |
( i 89,743 | ) | ( i 73,957 | ) | ||||
Purchases of marketable securities |
( i 247,881 | ) | ( i 398,086 | ) | ||||
Proceeds from maturities of marketable securities |
i 139,652 | i 460,213 | ||||||
Proceeds from sales of marketable securities |
i 143,642 | i 116,112 | ||||||
Purchase of investment |
i — | ( i 12,000 | ) | |||||
|
|
|
|
|||||
Net cash (used for) provided by investing activities |
( i 54,330 | ) | i 92,282 | |||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Issuance of common stock under stock purchase and stock option plans |
i 16,536 | i 32,581 | ||||||
Repurchase of common stock |
( i 532,799 | ) | ( i 196,584 | ) | ||||
Payments of convertible debt principal |
( i 42,292 | ) | ( i 66,828 | ) | ||||
Dividend payments |
( i 35,442 | ) | ( i 33,271 | ) | ||||
Payments related to net settlement of employee stock compensation awards |
( i 32,780 | ) | ( i 31,794 | ) | ||||
|
|
|
|
|||||
Net cash used for financing activities |
( i 626,777 | ) | ( i 295,896 | ) | ||||
|
|
|
|
|||||
Effects of exchange rate changes on cash and cash equivalents |
i 8,014 | ( i 489 | ) | |||||
(Decrease) increase in cash and cash equivalents |
( i 550,176 | ) | i 40,320 | |||||
Cash and cash equivalents at beginning of period |
i 1,122,199 | i 914,121 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | i 572,023 | $ | i 954,441 | ||||
|
|
|
|
|||||
Non-cash investing activities: |
||||||||
Capital expenditures incurred but not yet paid: |
$ | i 1,855 | $ | i 4,503 |
• |
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. |
Semiconductor Test |
Industrial Automation |
|||||||||||||||||||||||||||||||||||
System on-a-Chip |
Memory |
System Test |
Universal Robots |
Mobile Industrial Robots |
AutoGuide |
Wireless Test |
Corporate and Eliminations |
Total |
||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||
For the Three Months Ended July 3, 2022 (1) |
|
|||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
Point in Time |
$ | i 395,211 | $ | i 74,790 | $ | i 118,692 | $ | i 80,409 | $ | i 16,730 | $ | i 1,071 | $ | i 60,765 | $ | ( i 193 | ) | $ | i 747,475 | |||||||||||||||||
Over Time |
i 64,253 | i 7,094 | i 16,010 | i 2,104 | i 668 | i 73 | i 3,089 | i — | i 93,291 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 459,464 | $ | i 81,884 | $ | i 134,702 | $ | i 82,513 | $ | i 17,398 | $ | i 1,144 | $ | i 63,854 | $ | ( i 193 | ) | $ | i 840,766 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||||||
Asia Pacific |
$ | i 413,537 | $ | i 78,996 | $ | i 95,584 | $ | i 17,357 | $ | i 5,317 | $ | i — | $ | i 44,106 | $ | i — | $ | i 654,897 | ||||||||||||||||||
Americas |
i 28,714 | i 2,552 | i 33,409 | i 27,732 | i 6,085 | i 1,144 | i 17,460 | ( i 193 | ) | i 116,903 | ||||||||||||||||||||||||||
Europe, Middle East and Africa |
i 17,213 | i 336 | i 5,709 | i 37,424 | i 5,996 | i — | i 2,288 | i — | i 68,966 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 459,464 | $ | i 81,884 | $ | i 134,702 | $ | i 82,513 | $ | i 17,398 | $ | i 1,144 | $ | i 63,854 | $ | ( i 193 | ) | $ | i 840,766 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
For the Three Months Ended July 4, 2021 (1) |
|
|||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
Point in Time |
$ | i 675,958 | $ | i 84,232 | $ | i 88,197 | $ | i 74,412 | $ | i 15,091 | $ | i — | $ | i 51,619 | $ | ( i 146 | ) | $ | i 989,363 | |||||||||||||||||
Over Time |
i 65,712 | i 8,074 | i 16,622 | i 1,665 | i 809 | i 209 | i 3,274 | i — | i 96,365 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 741,670 | $ | i 92,306 | $ | i 104,819 | $ | i 76,077 | $ | i 15,900 | $ | i 209 | $ | i 54,893 | $ | ( i 146 | ) | $ | i 1,085,728 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||||||
Asia Pacific |
$ | i 710,995 | $ | i 87,151 | $ | i 61,230 | $ | i 18,044 | $ | i 2,439 | $ | i — | $ | i 45,802 | $ | i — | $ | i 925,661 | ||||||||||||||||||
Americas |
i 21,664 | i 3,672 | i 36,256 | i 24,808 | i 6,897 | i 209 | i 7,107 | ( i 146 | ) | i 100,467 | ||||||||||||||||||||||||||
Europe, Middle East and Africa |
i 9,011 | i 1,483 | i 7,333 | i 33,225 | i 6,564 | i — | i 1,984 | i — | i 59,600 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 741,670 | $ | i 92,306 | $ | i 104,819 | $ | i 76,077 | $ | i 15,900 | $ | i 209 | $ | i 54,893 | $ | ( i 146 | ) | $ | i 1,085,728 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
For the Six Months Ended July 3, 2022 (2) |
|
|||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
Point in Time |
$ | i 718,666 | $ | i 163,513 | $ | i 223,981 | $ | i 163,591 | $ | i 33,264 | $ | i 1,281 | $ | i 109,194 | $ | ( i 539 | ) | $ | i 1,412,951 | |||||||||||||||||
Over Time |
i 127,382 | i 14,127 | i 29,390 | i 4,206 | i 1,342 | i 560 | i 6,178 | i — | i 183,185 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 846,048 | $ | i 177,640 | $ | i 253,371 | $ | i 167,797 | $ | i 34,606 | $ | i 1,841 | $ | i 115,372 | $ | ( i 539 | ) | $ | i 1,596,136 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||||||
Asia Pacific |
$ | i 754,277 | $ | i 172,147 | $ | i 169,369 | $ | i 35,978 | $ | i 7,909 | $ | i — | $ | i 79,052 | $ | i — | $ | i 1,218,732 | ||||||||||||||||||
Americas |
i 58,428 | i 4,598 | i 70,017 | i 55,880 | i 13,952 | i 1,841 | i 27,147 | ( i 539 | ) | i 231,324 | ||||||||||||||||||||||||||
Europe, Middle East and Africa |
i 33,343 | i 895 | i 13,985 | i 75,939 | i 12,745 | i — | i 9,173 | i — | i 146,080 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 846,048 | $ | i 177,640 | $ | i 253,371 | $ | i 167,797 | $ | i 34,606 | $ | i 1,841 | $ | i 115,372 | $ | ( i 539 | ) | $ | i 1,596,136 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
For the Six Months Ended July 4, 2021 (2) |
|
|||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition |
||||||||||||||||||||||||||||||||||||
Point in Time |
$ | i 1,040,148 | $ | i 186,124 | $ | i 207,511 | $ | i 138,419 | $ | i 29,155 | $ | ( i 120 | ) | $ | i 89,499 | $ | ( i 289 | ) | $ | i 1,690,447 | ||||||||||||||||
Over Time |
i 121,752 | i 14,015 | i 30,145 | i 3,259 | i 876 | i 548 | i 6,292 | i — | i 176,887 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 1,161,900 | $ | i 200,139 | $ | i 237,656 | $ | i 141,678 | $ | i 30,031 | $ | i 428 | $ | i 95,791 | $ | ( i 289 | ) | $ | i 1,867,334 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Geographical Market |
||||||||||||||||||||||||||||||||||||
Asia Pacific |
$ | i 1,098,231 | $ | i 191,200 | $ | i 160,750 | $ | i 35,877 | $ | i 5,886 | $ | i — | $ | i 79,334 | $ | i — | $ | i 1,571,278 | ||||||||||||||||||
Americas |
i 42,443 | i 7,092 | i 63,915 | i 42,961 | i 12,050 | i 428 | i 12,876 | ( i 289 | ) | i 181,476 | ||||||||||||||||||||||||||
Europe, Middle East and Africa |
i 21,226 | i 1,847 | i 12,991 | i 62,840 | i 12,095 | i — | i 3,581 | i — | i 114,580 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ | i 1,161,900 | $ | i 200,139 | $ | i 237,656 | $ | i 141,678 | $ | i 30,031 | $ | i 428 | $ | i 95,791 | $ | ( i 289 | ) | $ | i 1,867,334 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes $ i 1.9 million and $ i 4.2 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue
from Contracts with Customers.” |
(2) | Includes $ i 4.2 million and $ i 7.3 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts
with Customers.” |
July 3, |
||||||||
2021 |
||||||||
(in thousands) |
||||||||
Maintenance, service and training |
$ | i 83,464 | $ | i 81,826 | ||||
Extended warranty |
i 65,791 | i 64,168 | ||||||
Customer advances, undelivered elements and other |
i 64,229 | i 55,112 | ||||||
|
|
|
|
|||||
Total deferred revenue and customer advances |
$ | i 213,484 | $ | i 201,106 | ||||
|
|
|
|
July 3, |
||||||||
2021 |
||||||||
(in thousands) |
||||||||
Raw material |
$ | i 193,907 | $ | i 155,641 | ||||
Work-in-process |
i 36,184 | i 37,740 | ||||||
Finished goods |
i 65,534 | i 49,949 | ||||||
|
|
|
|
|||||
$ | i 295,625 | $ | i 243,330 | |||||
|
|
|
|
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 |
$ |
i 447,312 |
$ |
i — |
$ |
i — |
$ |
i 447,312 |
||||||||
Cash equivalents |
i 95,068 |
i 29,643 |
i — |
i 124,711 |
||||||||||||
Available-for-sale |
||||||||||||||||
Commercial paper |
i — |
i 150,443 |
i — |
i 150,443 |
||||||||||||
U.S. Treasury securities |
i — |
i 73,100 |
i — |
i 73,100 |
||||||||||||
Corporate debt securities |
i — |
i 49,344 |
i — |
i 49,344 |
||||||||||||
Debt mutual funds |
i 6,514 |
i — |
i — |
i 6,514 |
||||||||||||
U.S. government agency securities |
i — |
i 4,693 |
i — |
i 4,693 |
||||||||||||
Certificates of deposit and time deposits |
i — |
i 1,261 |
i — |
i 1,261 |
||||||||||||
Non-U.S. government securities |
i — |
i 546 |
i — |
i 546 |
||||||||||||
Equity securities: |
||||||||||||||||
Mutual funds |
i 35,944 |
i — |
i — |
i 35,944 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
i 584,838 |
$ |
i 309,030 |
$ |
i — |
$ |
i 893,868 |
|||||||||
Derivative assets |
i — |
i 103 |
i — |
i 103 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i 584,838 |
$ |
i 309,133 |
$ |
i — |
$ |
i 893,971 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Derivative liabilities |
$ |
i — |
$ |
i 233 |
$ |
i — |
$ |
i 233 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i — |
$ |
i 233 |
$ |
i — |
$ |
i 233 |
||||||||
|
|
|
|
|
|
|
|
(Level 1) |
(Level 2) |
(Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents |
$ |
i 542,380 |
$ |
i 29,643 |
$ |
i — |
$ |
i 572,023 |
||||||||
Marketable securities |
i — |
i 209,846 |
i — |
i 209,846 |
||||||||||||
Long-term marketable securities |
i 42,458 |
i 69,541 |
i — |
i 111,999 |
||||||||||||
Prepayments and other current assets |
i — |
i 103 |
i — |
i 103 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i 584,838 |
$ |
i 309,133 |
$ |
i — |
$ |
i 893,971 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
. |
|||||||||||||||
Other current liabilities |
$ |
i — |
$ |
i 233 |
$ |
i — |
$ |
i 233 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i — |
$ |
i 233 |
$ |
i — |
$ |
i 233 |
||||||||
|
|
|
|
|
|
|
|
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 |
$ |
i 628,740 |
$ |
i — |
$ |
i — |
$ |
i 628,740 |
||||||||
Cash equivalents |
i 412,212 |
i 81,247 |
i — |
i 493,459 |
||||||||||||
Available-for-sale |
— |
|||||||||||||||
Commercial paper |
i — |
i 189,620 |
i — |
i 189,620 |
||||||||||||
U.S. Treasury securities |
i — |
i 77,789 |
i — |
i 77,789 |
||||||||||||
Corporate debt securities |
i — |
i 56,901 |
i — |
i 56,901 |
||||||||||||
Debt mutual funds |
i 7,971 |
i — |
i — |
i 7,971 |
||||||||||||
U.S. government agency securities |
i — |
i 4,610 |
i — |
i 4,610 |
||||||||||||
Certificates of deposit and time deposits |
i — |
i 1,356 |
i — |
i 1,356 |
||||||||||||
Non-U.S. government securities |
i — |
i 589 |
i — |
i 589 |
||||||||||||
Equity securities: |
||||||||||||||||
Mutual Funds |
i 39,253 |
i — |
i — |
i 39,253 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
i 1,088,176 |
$ |
i 412,112 |
$ |
i — |
$ |
i 1,500,288 |
|||||||||
Derivative assets |
i — |
i 92 |
i — |
i 92 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i 1,088,176 |
$ |
i 412,204 |
$ |
i — |
$ |
i 1,500,380 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Derivative liabilities |
i — |
i 118 |
i — |
i 118 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i — |
$ |
i 118 |
$ |
i — |
$ |
i 118 |
||||||||
|
|
|
|
|
|
|
|
(Level 1) |
(Level 2) |
(Level 3) |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents |
$ |
i 1,040,952 |
$ |
i 81,247 |
$ |
i — |
$ |
i 1,122,199 |
||||||||
Marketable securities |
i — |
i 244,231 |
i — |
i 244,231 |
||||||||||||
Long-term marketable securities |
i 47,224 |
i 86,634 |
i — |
i 133,858 |
||||||||||||
Prepayments and other current assets |
i — |
i 92 |
i — |
i 92 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i 1,088,176 |
$ |
i 412,204 |
$ |
i — |
$ |
i 1,500,380 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Other current liabilities |
$ |
i — |
$ |
i 118 |
$ |
i — |
$ |
i 118 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
i — |
$ |
i 118 |
$ |
i — |
$ |
i 118 |
||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 3, |
July 4, |
July 3, |
||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
(in thousands) |
||||||||||||||||
Balance at beginning of period |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i 7,227 |
||||||||
Fair value adjustment (a) |
i — |
i — |
i — |
( i 7,227 |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at end of period |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i — |
||||||||
|
|
|
|
|
|
|
|
(a) | In the six months ended July 4, 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 $ i 7.2 million,
primarily due to a decrease in forecasted revenues and earnings before interest and taxes. |
Carrying Value |
Fair Value |
Carrying Value |
Fair Value |
|||||||||||||
(in thousands) |
||||||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents |
$ | i 572,023 | $ | i 572,023 | $ | i 1,122,199 | $ | i 1,122,199 | ||||||||
Marketable securities |
i 321,845 | i 321,845 | i 378,089 | i 378,089 | ||||||||||||
Derivative assets |
i 103 | i 103 | i 92 | i 92 | ||||||||||||
Liabilities |
||||||||||||||||
Derivative liabilities |
i 233 | i 233 | i 118 | i 118 | ||||||||||||
Convertible debt |
i 74,428 | i 233,339 | i 108,426 | i 604,648 |
Available-for-Sale |
||||||||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Commercial paper |
$ |
i 150,695 |
$ |
i 8 |
$ |
( i 260 |
) |
$ |
i 150,443 |
$ |
i 137,162 |
|||||||||
U.S. Treasury securities |
i 75,962 |
i 42 |
( i 2,904 |
) |
i 73,100 |
i 71,861 |
||||||||||||||
Corporate debt securities |
i 53,274 |
i 147 |
( i 4,077 |
) |
i 49,344 |
i 46,289 |
||||||||||||||
Debt mutual funds |
i 6,783 |
— |
( i 269 |
) |
i 6,514 |
i 3,245 |
||||||||||||||
U.S. government agency securities |
i 4,786 |
— |
( i 93 |
) |
i 4,693 |
i 4,693 |
||||||||||||||
Certificates of deposit and time deposits |
i 1,261 |
— |
— |
i 1,261 |
— |
|||||||||||||||
Non-U.S. government securities |
i 546 |
— |
— |
i 546 |
— |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ |
i 293,307 |
$ |
i 197 |
$ |
( i 7,603 |
) |
$ |
i 285,901 |
$ |
i 263,250 |
||||||||||
|
|
|
|
|
|
|
|
|
|
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Marketable securities |
$ |
i 210,598 |
$ |
i 8 |
$ |
( i 760 |
) |
$ |
i 209,846 |
$ |
i 195,003 |
|||||||||
Long-term marketable securities |
i 82,709 |
i 189 |
( i 6,843 |
) |
i 76,055 |
i 68,247 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ |
i 293,307 |
$ |
i 197 |
$ |
( i 7,603 |
) |
$ |
i 285,901 |
$ |
i 263,250 |
||||||||||
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
||||||||||||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Commercial paper |
$ | i 189,614 | $ | i 15 | $ | ( i 9 | ) | $ | i 189,620 | $ | i 22,784 | |||||||||
U.S. Treasury securities |
i 77,707 | i 551 | ( i 470 | ) | i 77,789 | i 46,435 | ||||||||||||||
Corporate debt securities |
i 52,266 | i 4,863 | ( i 227 | ) | i 56,901 | i 19,422 | ||||||||||||||
Debt mutual funds |
i 7,928 | i 43 | — | i 7,971 | — | |||||||||||||||
U.S. government agency securities |
i 4,617 | i 5 | ( i 12 | ) | i 4,610 | i 3,296 | ||||||||||||||
Certificates of deposit and time deposits |
i 1,356 | — | — | i 1,356 | — | |||||||||||||||
Non-U.S. government securities |
i 589 | — | — | i 589 | — | |||||||||||||||
$ | i 334,077 | $ | i 5,477 | $ | ( i 718 | ) | $ | i 338,836 | $ | i 91,937 | ||||||||||
Cost |
Unrealized Gain |
Unrealized (Loss) |
Fair Market Value |
Fair Market Value of Investments with Unrealized Losses |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Marketable securities |
$ | i 244,213 | $ | i 64 | $ | ( i 46 | ) | $ | i 244,231 | $ | i 54,798 | |||||||||
Long-term marketable securities |
i 89,864 | i 5,413 | ( i 672 | ) | i 94,605 | i 37,139 | ||||||||||||||
$ | i 334,077 | $ | i 5,477 | $ | ( i 718 | ) | $ | i 338,836 | $ | i 91,937 | ||||||||||
Cost |
Fair Market Value |
|||||||
(in thousands) |
||||||||
Due within one year |
$ | i 210,598 | $ | i 209,846 | ||||
Due after 1 year through 5 years |
i 32,283 | i 31,069 | ||||||
Due after 5 years through 10 years |
i 5,055 | i 4,736 | ||||||
Due after 10 years |
i 38,588 | i 33,736 | ||||||
Total |
$ | i 286,524 | $ | i 279,387 | ||||
Buy Position |
Sell Position |
Net Total |
Buy Position |
Sell Position |
Net Total |
|||||||||||||||||||
(in millions) |
||||||||||||||||||||||||
Japanese Yen |
$ | ( i 32.5 | ) | $ | — | $ | ( i 32.5 | ) | $ | ( i 31.4 | ) | $ | — | $ | ( i 31.4 | ) | ||||||||
Taiwan Dollar |
( i 27.2 | ) | — | ( i 27.2 | ) | ( i 35.1 | ) | — | ( i 35.1 | ) | ||||||||||||||
Korean Won |
( i 3.1 | ) | — | ( i 3.1 | ) | ( i 4.2 | ) | — | ( i 4.2 | ) | ||||||||||||||
British Pound Sterling |
( i 1.0 | ) | — | ( i 1.0 | ) | ( i 1.8 | ) | — | ( i 1.8 | ) | ||||||||||||||
Singapore Dollar |
— | i 40.0 | i 40.0 | — | i 61.9 | i 61.9 | ||||||||||||||||||
Euro |
— | i 39.8 | i 39.8 | — | i 44.9 | i 44.9 | ||||||||||||||||||
Philippine Peso |
— | i 3.2 | i 3.2 | — | i 3.9 | i 3.9 | ||||||||||||||||||
Chinese Yuan |
— | i 2.8 | i 2.8 | — | i 2.8 | i 2.8 | ||||||||||||||||||
Total |
$ | ( i 63.8 | ) | $ | i 85.8 | $ | i 22.0 | $ | ( i 72.5 | ) | $ | i 113.5 | $ | i 41.0 | ||||||||||
Balance Sheet Location |
||||||||||
(in thousands) |
||||||||||
Derivatives not designated as hedging instruments: |
||||||||||
Foreign exchange contracts |
Prepayments | $ | i 103 | $ | i 92 | |||||
Foreign exchange contracts |
Other current liabilities | ( i 233 | ) | ( i 118 | ) | |||||
Total derivatives |
$ | ( i 130 | ) | $ | ( i 26 | ) | ||||
Location of (Gains) Losses |
For the Three Months Ended |
For the Six Months Ended |
||||||||||||||||
Recognized in |
July 3, |
July 4, |
July 3, |
July 4, |
||||||||||||||
Statement of Operations |
2022 |
2021 |
2022 |
2021 |
||||||||||||||
(in thousands) |
||||||||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||||
Foreign exchange contracts |
Other (income) expense, net | $ | ( i 1,703 | ) | $ | i 1,531 | $ | ( i 3,455 | ) | $ | i 3,650 |
(in thousands) |
||||||||
Debt principal |
$ | i 74,688 | $ | i 116,980 | ||||
Unamortized debt issuance fees (1) |
i 260 | i 8,554 | ||||||
Net Carrying amount of convertible debt |
$ | i 74,428 | $ | i 108,426 | ||||
(in thousands) |
||||||||
Current debt |
$ | i 9,632 | $ | i 19,182 | ||||
Long-term debt |
i 64,796 | i 89,244 | ||||||
Net carrying amount of convertible debt |
$ | i 74,428 | $ | i 108,426 | ||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
(in thousands) |
||||||||||||||||
Contractual interest expense on the coupon |
$ | i 121 | $ | i 1,072 | $ | i 432 | $ | i 2,311 | ||||||||
Amortization of debt issuance fees recognized as interest expense (2) |
i 64 | i 3,511 | i 130 | i 7,347 | ||||||||||||
Total interest expense on the convertible debt |
$ | i 185 | $ | i 4,583 | $ | i 562 | $ | i 9,658 | ||||||||
(1) | Unamortized debt issuance fees as of December 31, 2021 include unamortized debt discount of $ i 8.1 million, which was eliminated with the adoption of ASU 2020-6 on January 1, 2022. |
(2) | Three and six months ended July 4, 2021 includes the amortization of debt discount component, which was eliminated with the adoption of ASU 2020-06 on January 1, 2022. |
July 3, |
||||||||
2021 |
||||||||
(in thousands) |
||||||||
Contract manufacturer and supplier prepayments |
$ | i 460,727 | $ | i 364,478 | ||||
Prepaid maintenance and other services |
i 17,421 | i 13,660 | ||||||
Prepaid taxes |
i 8,675 | i 15,090 | ||||||
Other prepayments |
i 11,270 | i 13,038 | ||||||
Total prepayments |
$ | i 498,093 | $ | i 406,266 | ||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 3, |
July 4, |
July 3, |
||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
(in thousands) |
||||||||||||||||
Balance at beginning of period |
$ | i 20,105 | $ | i 23,893 | $ | i 24,577 | $ | i 16,633 | ||||||||
Accruals for warranties issued during the period |
i 6,429 | i 10,197 | i 10,530 | i 22,078 | ||||||||||||
Accruals related to pre-existing warranties |
( i 1,611 | ) | ( i 3,450 | ) | ( i 4,370 | ) | ( i 3,003 | ) | ||||||||
Settlements made during the period |
( i 8,887 | ) | ( i 4,964 | ) | ( i 14,701 | ) | ( i 10,032 | ) | ||||||||
Balance at end of period |
$ | i 16,036 | $ | i 25,676 | $ | i 16,036 | $ | i 25,676 | ||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
July 3, |
July 4, |
July 3, |
||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
(in thousands) |
||||||||||||||||
Balance at beginning of period |
$ | i 65,726 | $ | i 53,908 | $ | i 64,168 | $ | i 51,929 | ||||||||
Deferral of new extended warranty revenue |
i 9,788 | i 16,290 | i 21,563 | i 23,805 | ||||||||||||
Recognition of extended warranty deferred revenue |
( i 9,723 | ) | ( i 6,673 | ) | ( i 19,940 | ) | ( i 12,209 | ) | ||||||||
Balance at end of period |
$ | i 65,791 | $ | i 63,525 | $ | i 65,791 | $ | i 63,525 | ||||||||
For the Six Months Ended |
||||||||
Risk-free interest rate |
i 1.4 | % | i 0.2 | % | ||||
Teradyne volatility-historical |
i 47.1 | % | i 43.9 | % | ||||
NYSE Composite Index volatility-historical |
i 22.7 | % | i 22.9 | % | ||||
Dividend yield |
i 0.4 | % | i 0.4 | % |
For the Six Months Ended |
||||||||
Expected life (years) |
i 4.0 | i 5.0 | ||||||
Risk-free interest rate |
i 1.6 | % | i 0.4 | % | ||||
Volatility-historical |
i 43.7 | % | i 37.8 | % | ||||
Dividend yield |
i 0.4 | % | i 0.4 | % |
Foreign Currency Translation Adjustment |
Unrealized Gains (Losses) on Marketable Securities |
Retirement Plans Prior Service Credit |
Total |
|||||||||||||
(in thousands) |
||||||||||||||||
Six Months Ended July 3, 2022 |
||||||||||||||||
$ | ( i 10,818 | ) | $ | i 3,704 | $ | i 1,166 | $ | ( i 5,948 | ) | |||||||
Other comprehensive loss before reclassifications, net of tax of $ i 0, $( i 2,573),
$ i 0, respectively |
( i 37,307 | ) | ( i 9,910 | ) | i — | $ | ( i 47,217 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $ i 0, $ i 59,
$( i 1), respectively |
i — | i 209 | ( i 3 | ) | i 206 | |||||||||||
Net current period other comprehensive loss, net of tax of $ i 0, $( i 2,514),
$( i 1), respectively |
( i 37,307 | ) | ( i 9,701 | ) | ( i 3 | ) | ( i 47,011 | ) | ||||||||
$ | ( i 48,125 | ) | $ | ( i 5,997 | ) | $ | i 1,163 | $ | ( i 52,959 | ) | ||||||
Six Months Ended July 4, 2021 |
||||||||||||||||
$ | i 25,389 | $ | i 6,954 | $ | i 1,173 | $ | i 33,516 | |||||||||
Other comprehensive loss before reclassifications, net of tax of $ i 0, $( i 472),
$ i 0, respectively |
( i 15,974 | ) | ( i 1,776 | ) | — | ( i 17,750 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $ i 0, $( i 121),
$( i 1), respectively |
i — | ( i 441 | ) | ( i 3 | ) | ( i 444 | ) | |||||||||
Net current period other comprehensive loss, net of tax of $ i 0, $( i 593),
$( i 1), respectively |
( i 15,974 | ) | ( i 2,217 | ) | ( i 3 | ) | ( i 18,194 | ) | ||||||||
$ | i 9,415 | $ | i 4,737 | $ | i 1,170 | $ | i 15,322 | |||||||||
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 | |||||||||||||||
(in thousands) |
||||||||||||||||||
Available-for-sale |
||||||||||||||||||
Unrealized (losses) gains, net of tax of $( i 77), $( i 2),
$( i 59), $ i 121,
respectively |
$ | ( i 274 | ) | $ | ( i 3 | ) | $ | ( i 209 | ) | $ | i 441 | Other (income) | ||||||
Defined benefit postretirement plan: |
||||||||||||||||||
Amortization of prior service credit, net of tax of $ i 0, $ i 0,
$ i 1, $ i 1,
respectively |
i 2 | i 2 | i 3 | i 3 | (a) | |||||||||||||
Total reclassifications, net of tax of $( i 77), $( i 2), $( i 58),
$ i 122, respectively |
$ | ( i 272 | ) | $ | ( i 1 | ) | $ | ( i 206 | ) | $ | i 444 | Net income | ||||||
(a) | The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note P: “Retirement Plans.” |
Industrial Automation |
Wireless Test |
Semiconductor Test |
System Test |
Total |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Balance at December 31, 2021 |
||||||||||||||||||||
Goodwill |
$ | i 405,971 | $ | i 361,819 | $ | i 262,101 | $ | i 158,699 | $ | i 1,188,590 | ||||||||||
Accumulated impairment losses |
— | ( i 353,843 | ) | ( i 260,540 | ) | ( i 148,183 | ) | ( i 762,566 | ) | |||||||||||
Total Goodwill |
i 405,971 | i 7,976 | i 1,561 | i 10,516 | i 426,024 | |||||||||||||||
Foreign currency translation adjustment |
( i 28,225 | ) | i — | ( i 66 | ) | i — | ( i 28,291 | ) | ||||||||||||
Balance at July 3, 2022 |
||||||||||||||||||||
Goodwill |
i 377,746 | i 361,819 | i 262,035 | i 158,699 | i 1,160,299 | |||||||||||||||
Accumulated impairment losses |
— | ( i 353,843 | ) | ( i 260,540 | ) | ( i 148,183 | ) | ( i 762,566 | ) | |||||||||||
Total Goodwill |
$ | i 377,746 | $ | i 7,976 | $ | i 1,495 | $ | i 10,516 | $ | i 397,733 | ||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Foreign Currency Translation Adjustment |
Net Carrying Amount |
|||||||||||||
Balance at July 3, 2022 |
(in thousands) |
|||||||||||||||
Developed technology |
$ | i 272,547 | $ | ( i 229,766 | ) | $ | ( i 6,182 | ) | $ | i 36,599 | ||||||
Customer relationships |
i 57,739 | ( i 50,058 | ) | i 149 | i 7,830 | |||||||||||
Tradenames and trademarks |
i 59,387 | ( i 39,706 | ) | ( i 1,601 | ) | i 18,080 | ||||||||||
Total intangible assets |
$ | i 389,673 | $ | ( i 319,530 | ) | $ | ( i 7,634 | ) | $ | i 62,509 | ||||||
Balance, December 31, 2021 |
||||||||||||||||
Developed technology |
$ | i 272,547 | $ | ( i 223,413 | ) | $ | ( i 4,093 | ) | $ | i 45,041 | ||||||
Customer relationships |
i 57,739 | ( i 48,921 | ) | i 209 | i 9,027 | |||||||||||
Tradenames and trademarks |
i 59,387 | ( i 37,237 | ) | ( i 583 | ) | i 21,567 | ||||||||||
Total intangible assets |
$ | i 389,673 | $ | ( i 309,571 | ) | $ | ( i 4,467 | ) | $ | i 75,635 | ||||||
Year |
Amortization Expense |
|||
(in thousands) |
||||
2022 |
$ | i 9,547 | ||
2023 |
i 18,642 | |||
2024 |
i 18,336 | |||
2025 |
i 11,154 | |||
2026 |
i 2,333 | |||
Thereafter |
i 2,497 |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
Net income for basic and diluted net income per share |
$ | i 197,787 | $ | i 328,319 | $ | i 359,715 | $ | i 533,831 | ||||||||
Weighted average common shares-basic |
i 159,563 | i 165,995 | i 160,805 | i 166,243 | ||||||||||||
Effect of dilutive potential common shares: |
||||||||||||||||
Convertible note hedge warrant shares (1) |
i 9,029 | i 10,073 | i 9,528 | i 9,751 | ||||||||||||
Incremental shares from assumed conversion of convertible notes (2) |
i 1,900 | i 9,578 | i 2,220 | i 9,944 | ||||||||||||
Restricted stock units |
i 581 | i 1,015 | i 730 | i 1,205 | ||||||||||||
Stock options |
i 54 | i 78 | i 61 | i 93 | ||||||||||||
Employee stock purchase plan |
i 32 | i 11 | i 23 | i 9 | ||||||||||||
Dilutive potential common shares |
i 11,596 | i 20,755 | i 12,562 | i 21,002 | ||||||||||||
Weighted average common shares-diluted |
i 171,159 | i 186,750 | i 173,367 | i 187,245 | ||||||||||||
Net income per common share-basic |
$ | i 1.24 | $ | i 1.98 | $ | i 2.24 | $ | i 3.21 | ||||||||
Net income per common share-diluted |
$ | i 1.16 | $ | i 1.76 | $ | i 2.07 | $ | i 2.85 | ||||||||
(1) | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
(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, multiplied by the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. |
For the Three Months Ended |
||||||||||||||||
United States |
Foreign |
United States |
Foreign |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | i 397 | $ | i 180 | $ | i 452 | $ | i 245 | ||||||||
Interest cost |
i 1,221 | i 120 | i 1,096 | i 88 | ||||||||||||
Expected return on plan assets |
( i 732 | ) | ( i 18 | ) | ( i 936 | ) | ( i 17 | ) | ||||||||
Net actuarial gain |
( i 45 | ) | — | ( i 400 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net periodic pension cost |
$ | i 841 | $ | i 282 | $ | i 212 | $ | i 316 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
For the Six Months Ended |
||||||||||||||||
United States |
Foreign |
United States |
Foreign |
|||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | i 794 | $ | i 386 | $ | i 905 | $ | i 491 | ||||||||
Interest cost |
i 2,443 | i 238 | i 2,196 | i 175 | ||||||||||||
Expected return on plan assets |
( i 1,463 | ) | ( i 38 | ) | ( i 1,872 | ) | ( i 33 | ) | ||||||||
Net actuarial gain |
( i 45 | ) | — | ( i 400 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net periodic pension cost |
$ | i 1,729 | $ | i 586 | $ | i 829 | $ | i 633 | ||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
(in thousands) |
||||||||||||||||
Service cost |
$ | i 15 | $ | i 17 | $ | i 32 | $ | i 33 | ||||||||
Interest cost |
i 45 | i 41 | i 88 | i 85 | ||||||||||||
Amortization of prior service credit |
( i 2 | ) | ( i 2 | ) | ( i 4 | ) | ( i 4 | ) | ||||||||
Net actuarial loss (gain) |
i 54 | ( i 228 | ) | i 54 | ( i 228 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net periodic postretirement benefit cost (credit) |
$ | i 112 | $ | ( i 172 | ) | $ | i 170 | $ | ( i 114 | ) | ||||||
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
U.S. statutory federal tax rate |
i 21.0 | % | i 21.0 | % | i 21.0 | % | i 21.0 | % | ||||||||
Non-deductible officers’ compensation |
i 1.4 | i 0.8 | i 1.3 | i 0.8 | ||||||||||||
Foreign taxes |
( i 3.2 | ) | ( i 4.3 | ) | ( i 3.3 | ) | ( i 4.5 | ) | ||||||||
Tax credits |
( i 2.0 | ) | ( i 1.2 | ) | ( i 1.8 | ) | ( i 1.2 | ) | ||||||||
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 |
( i 1.0 | ) | ( i 1.7 | ) | ( i 1.2 | ) | ( i 1.6 | ) | ||||||||
Discrete benefit related to equity compensation |
( i 0.2 | ) | ( i 0.2 | ) | ( i 2.9 | ) | ( i 2.4 | ) | ||||||||
Other, net |
i 1.1 | i 0.1 | i 1.0 | i 0.1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Effective tax rate |
i 17.1 | % | i 14.5 | % | i 14.1 | % | i 12.2 | % | ||||||||
|
|
|
|
|
|
|
|
Semiconductor Test |
System Test |
Industrial Automation |
Wireless Test |
Corporate and Eliminations |
Consolidated |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Three Months Ended July 3, 2022 |
||||||||||||||||||||||||
Revenues |
$ | i 541,348 | $ | i 134,702 | $ | i 101,055 | $ | i 63,854 | $ | ( i 193 | ) | $ | i 840,766 | |||||||||||
Income (loss) before income taxes (1)(2) |
i 177,782 | i 54,042 | ( i 6,406 | ) | i 25,393 | ( i 12,219 | ) | i 238,592 | ||||||||||||||||
Total assets (3) |
i 1,449,878 | i 229,359 | i 644,099 | i 118,445 | i 1,046,645 | i 3,488,426 | ||||||||||||||||||
Three Months Ended July 4, 2021 |
||||||||||||||||||||||||
Revenues |
$ | i 833,976 | $ | i 104,819 | $ | i 92,186 | $ | i 54,893 | $ | ( i 146 | ) | $ | i 1,085,728 | |||||||||||
Income (loss) before income taxes (1)(2) |
i 337,302 | i 33,954 | ( i 9,837 | ) | i 21,472 | i 1,135 | i 384,026 | |||||||||||||||||
Total assets (3) |
i 1,518,941 | i 146,296 | i 687,022 | i 117,702 | i 1,530,961 | i 4,000,922 | ||||||||||||||||||
Six Months Ended July 3, 2022 |
||||||||||||||||||||||||
Revenues |
$ | i 1,023,688 | $ | i 253,371 | $ | i 204,244 | $ | i 115,372 | $ | ( i 539 | ) | $ | i 1,596,136 | |||||||||||
Income (loss) before income taxes (1)(2) |
i 327,487 | i 95,365 | ( i 11,504 | ) | i 44,012 | ( i 36,409 | ) | i 418,951 | ||||||||||||||||
Total assets (3) |
i 1,449,878 | i 229,359 | i 644,099 | i 118,445 | i 1,046,645 | i 3,488,426 | ||||||||||||||||||
Six Months Ended July 4, 2021 |
||||||||||||||||||||||||
Revenues |
$ | i 1,362,039 | $ | i 237,656 | $ | i 172,137 | $ | i 95,791 | $ | ( i 289 | ) | $ | i 1,867,334 | |||||||||||
Income (loss) before income taxes (1)(2) |
i 513,670 | i 85,015 | ( i 22,804 | ) | i 31,088 | i 1,050 | i 608,019 | |||||||||||||||||
Total assets (3) |
i 1,518,941 | i 146,296 | i 687,022 | i 117,702 | i 1,530,961 | i 4,000,922 |
(1) | Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), acquisition related charges and compensation, pension, intercompany eliminations and for the three and six months ended July 4, 2021, loss on convertible debt conversions. |
(2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and, for the three and six months ended July 4, 2021, loss on convertible debt conversions. |
(3) | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets. |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
(in thousands) |
||||||||||||||||
Semiconductor Test: |
||||||||||||||||
Cost of revenues—inventory charge |
$ | i 2,071 | $ | — | $ | i 2,315 | $ | i 1,234 | ||||||||
Industrial Automation: |
||||||||||||||||
Cost of revenues—inventory charge |
$ | i 831 | $ | — | $ | i 1,197 | $ | i 1,285 | ||||||||
Restructuring and other—acquisition related expenses and compensation |
— | — | — | i 550 | ||||||||||||
Wireless: |
||||||||||||||||
Cost of revenues—inventory charge |
$ | i 2,099 | $ | — | $ | i 2,976 | $ | i 672 | ||||||||
Corporate and Eliminations: |
||||||||||||||||
Restructuring and other—other |
$ | i 1,500 | $ | i 1,700 | $ | i 2,000 | $ | i 1,846 | ||||||||
Restructuring and other—legal settlement charge |
i — | i — | i 14,700 | i — | ||||||||||||
Other (income) expense, net—loss on convertible debt conversions |
i — | i 1,175 | i — | i 5,244 | ||||||||||||
Restructuring and other—AutoGuide contingent consideration adjustment |
i — | i — | i — | ( i 7,227 | ) | |||||||||||
Restructuring and other—acquisition related expenses and compensation |
i — | i — | i — | ( i 513 | ) |
Item 2: |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | 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. |
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
Percentage of revenues: |
||||||||||||||||
Revenues: |
||||||||||||||||
Products |
83 | % | 88 | % | 83 | % | 86 | % | ||||||||
Services |
17 | 12 | 17 | 14 | ||||||||||||
Total revenues |
100 | 100 | 100 | 100 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Cost of products |
33 | 36 | 32 | 35 | ||||||||||||
Cost of services |
7 | 5 | 7 | 5 | ||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |
40 | 40 | 40 | 41 | ||||||||||||
Gross profit |
60 | 60 | 60 | 59 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling and administrative |
17 | 13 | 18 | 14 | ||||||||||||
Engineering and development |
13 | 10 | 14 | 11 | ||||||||||||
Acquired intangible assets amortization |
— | — | 1 | 1 | ||||||||||||
Restructuring and other |
— | — | 1 | — | ||||||||||||
Total operating expenses |
31 | 24 | 33 | 26 | ||||||||||||
Income from operations |
29 | 36 | 27 | 33 | ||||||||||||
Non-operating (income) expense: |
||||||||||||||||
Interest income |
— | — | — | — | ||||||||||||
Interest expense |
— | 1 | — | 1 | ||||||||||||
Other (income) expense, net |
1 | — | 1 | — | ||||||||||||
Income before income taxes |
28 | 35 | 26 | 33 | ||||||||||||
Income tax provision |
5 | 5 | 4 | 4 | ||||||||||||
Net income |
24 | % | 30 | % | 23 | % | 29 | % | ||||||||
For the Three Months Ended |
||||||||||||
Dollar Change |
||||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ | 541.3 | $ | 834.0 | $ | (292.7 | ) | |||||
System Test |
134.7 | 104.8 | 29.9 | |||||||||
Industrial Automation |
101.1 | 92.2 | 8.9 | |||||||||
Wireless Test |
63.9 | 54.9 | 9.0 | |||||||||
Corporate and Eliminations |
(0.2 | ) | (0.1 | ) | (0.1 | ) | ||||||
$ | 840.8 | $ | 1,085.7 | $ | (244.9 | ) | ||||||
For the Three Months Ended |
||||||||
Taiwan |
25 | % | 44 | % | ||||
Korea |
17 | 9 | ||||||
United States |
14 | 9 | ||||||
China |
13 | 15 | ||||||
Europe |
8 | 5 | ||||||
Thailand |
6 | 3 | ||||||
Malaysia |
5 | 2 | ||||||
Japan |
5 | 5 | ||||||
Philippines |
3 | 6 | ||||||
Singapore |
2 | 1 | ||||||
Rest of World |
2 | 1 | ||||||
100 | % | 100 | % | |||||
(1) | Revenues attributable to a country are based on location of customer site. |
For the Three Months Ended |
||||||||||||
Dollar/Point Change |
||||||||||||
(in millions) |
||||||||||||
Gross profit |
$ | 506.4 | $ | 647.0 | $ | (140.6 | ) | |||||
Percent of total revenues |
60.2 | % | 59.6 | % | 0.6 |
For the Three Months Ended |
||||||||||||
Dollar Change |
||||||||||||
(in millions) |
||||||||||||
Selling and administrative |
$ | 139.5 | $ | 140.2 | $ | (0.7 | ) | |||||
Percent of total revenues |
16.6 | % | 12.9 | % |
For the Three Months Ended |
||||||||||||
Dollar Change |
||||||||||||
(in millions) |
||||||||||||
Engineering and development |
$ | 112.0 | $ | 110.0 | $ | 2.0 | ||||||
Percent of total revenues |
13.3 | % | 10.1 | % |
For the Three Months Ended |
||||||||||||
Dollar Change |
||||||||||||
(in millions) |
||||||||||||
Interest income |
$ | (1.0 | ) | $ | (0.6 | ) | $ | (0.4 | ) | |||
Interest expense |
0.9 | 5.6 | $ | (4.7 | ) | |||||||
Other (income) expense, net |
9.4 | (0.1 | ) | $ | 9.5 |
For the Three Months Ended |
||||||||||||
Dollar Change |
||||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ | 177.8 | $ | 337.3 | $ | (159.5 | ) | |||||
System Test |
54.0 | 34.0 | 20.0 | |||||||||
Wireless Test |
25.4 | 21.5 | 3.9 | |||||||||
Industrial Automation |
(6.4 | ) | (9.8 | ) | 3.4 | |||||||
Corporate and Eliminations (1) |
(12.2 | ) | 1.1 | (13.3 | ) | |||||||
$ | 238.6 | $ | 384.0 | $ | (145.4 | ) | ||||||
(1) | Included in Corporate and Eliminations are legal and environmental fees, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations, acquisition related charges and compensation and for the three months ended July 4, 2021, loss on convertible debt conversions. |
For the Six Months Ended |
||||||||||||
Dollar Change |
||||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ | 1,023.7 | $ | 1,362.0 | $ | (338.3 | ) | |||||
System Test |
253.4 | 237.7 | 15.7 | |||||||||
Industrial Automation |
204.2 | 172.1 | 32.1 | |||||||||
Wireless Test |
115.4 | 95.8 | 19.6 | |||||||||
Corporate and Eliminations |
(0.5 | ) | (0.3 | ) | (0.2 | ) | ||||||
$ | 1,596.1 | $ | 1,867.3 | $ | (271.1 | ) | ||||||
For the Six Months Ended |
||||||||
Taiwan |
22 | % | 40 | % | ||||
China |
16 | 17 | ||||||
Korea |
15 | 9 | ||||||
United States |
15 | 9 | ||||||
Europe |
9 | 6 | ||||||
Thailand |
5 | 5 | ||||||
Japan |
5 | 4 | ||||||
Malaysia |
5 | 3 | ||||||
Philippines |
3 | 5 | ||||||
Singapore |
3 | 2 | ||||||
Rest of World |
2 | — | ||||||
100 | % | 100 | % | |||||
(1) | Revenues attributable to a country are based on location of customer site. |
For the Six Months Ended |
||||||||||||
July 3, |
July 4, |
Dollar/Point |
||||||||||
2022 |
2021 |
Change |
||||||||||
(in millions) |
||||||||||||
Gross profit |
$ | 961.3 | $ | 1,108.6 | $ | (147.3 | ) | |||||
Percent of total revenues |
60.2 | % | 59.4 | % | 0.8 |
For the Six Months Ended |
||||||||||||
July 3, |
July 4, |
Dollar |
||||||||||
2022 |
2021 |
Change |
||||||||||
(in millions) |
||||||||||||
Selling and administrative |
$ | 279.7 | $ | 270.0 | $ | 9.7 | ||||||
Percent of total revenues |
17.5 | % | 14.5 | % |
For the Six Months Ended |
||||||||||||
July 3, |
July 4, |
Dollar |
||||||||||
2022 |
2021 |
Change |
||||||||||
(in millions) |
||||||||||||
Engineering and development |
$ | 220.1 | $ | 210.4 | $ | 9.7 | ||||||
Percent of total revenues |
13.8 | % | 11.3 | % |
For the Six Months Ended |
||||||||||||
July 3, |
July 4, |
Dollar |
||||||||||
2022 |
2021 |
Change |
||||||||||
(in millions) |
||||||||||||
Interest income |
$ | (1.7 | ) | $ | (1.4 | ) | $ | (0.3 | ) | |||
Interest expense |
1.9 | 11.6 | (9.7 | ) | ||||||||
Other (income) expense, net |
14.6 | 3.7 | 10.9 |
For the Six Months Ended |
||||||||||||
July 3, |
July 4, |
Dollar |
||||||||||
2022 |
2021 |
Change |
||||||||||
(in millions) |
||||||||||||
Semiconductor Test |
$ | 327.5 | $ | 513.7 | $ | (186.2 | ) | |||||
System Test |
95.4 | 85.0 | 10.4 | |||||||||
Wireless Test |
44.0 | 31.1 | 12.9 | |||||||||
Industrial Automation |
(11.5 | ) | (22.8 | ) | 11.3 | |||||||
Corporate and Eliminations (1) |
(36.4 | ) | 1.1 | (37.5 | ) | |||||||
|
|
|
|
|
|
|||||||
$ | 419.0 | $ | 608.0 | $ | (189.0 | ) | ||||||
|
|
|
|
|
|
(1) | Included in Corporate and Eliminations are legal and environmental fees, contingent consideration adjustments, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations, acquisition related charges and compensation and for the six months ended July 4, 2021, loss on convertible debt conversions. |
Item 3: |
Quantitative and Qualitative Disclosures about Market Risks |
Hypothetical Change in Teradyne Stock Price |
Fair Value |
Estimated change in fair value |
Hypothetical percentage increase (decrease) in fair value |
|||||||||
10% Increase |
$ | 253,683 | $ | 20,344 | 8.7 | % | ||||||
No Change |
233,339 | — | — | |||||||||
10% Decrease |
212,995 | (20,344 | ) | (8.7 | ) |
Item 4: |
Controls and Procedures |
Item 1: |
Legal Proceedings |
Item 1A: |
Risk Factors |
Item 2: |
Unregistered Sales of Equity Securities and Use of Proceeds |
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 |
||||||||||||
853 | $ | 111.53 | 852 | $ | 1,103,537 | |||||||||||
989 | $ | 104.60 | 974 | $ | 1,001,700 | |||||||||||
1,381 | $ | 97.45 | 1,380 | $ | 867,202 | |||||||||||
|
|
|
|
|
|
|||||||||||
3,223 | (1) | $ | 103.37 | (1) | 3,206 | |||||||||||
|
|
|
|
|
|
(1) | Includes approximately seventeen thousand shares at an average price of $109.12 withheld from employees for the payment of taxes. |
Item 4: |
Mine Safety Disclosures |
Item 6: |
Exhibits |
Exhibit Number |
Description | |
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) |
TERADYNE, INC. |
Registrant |
/s/ S ANJAY MEHTA |
Sanjay Mehta Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer and Principal Financial Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/10/26 | ||||
12/31/25 | ||||
12/15/23 | ||||
9/15/23 | ||||
12/31/22 | ||||
Filed on: | 8/5/22 | |||
8/1/22 | ||||
7/4/22 | ||||
For Period end: | 7/3/22 | |||
5/30/22 | ||||
5/29/22 | ||||
5/2/22 | 4 | |||
5/1/22 | ||||
4/4/22 | ||||
4/3/22 | 10-Q | |||
3/25/22 | ||||
2/23/22 | 10-K | |||
1/1/22 | ||||
12/31/21 | 10-K, SD | |||
12/10/21 | ||||
11/4/21 | 4 | |||
7/4/21 | 10-Q | |||
6/1/21 | ||||
4/4/21 | 10-Q | |||
3/8/21 | ||||
12/31/20 | 10-K, SD | |||
5/1/20 | 4, 8-K | |||
10/18/19 | ||||
3/31/17 | ||||
12/12/16 | 8-K | |||
List all Filings |