Retirement Plans (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
Defined Benefit Plan Disclosure [Line Items] |
|
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations |
The December 31 balances of these defined benefit pension plans assets and obligations are shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
|
|
(in thousands) |
|
Assets and Obligations |
|
|
|
|
|
|
|
|
|
|
|
|
Change in benefit obligation: |
|
|
|
|
|
|
|
|
|
|
|
|
Projected benefit obligation: |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year |
|
$ |
143,814 |
|
|
$ |
29,935 |
|
|
$ |
192,472 |
|
|
$ |
45,774 |
|
Service cost |
|
|
1,063 |
|
|
|
446 |
|
|
|
1,588 |
|
|
|
784 |
|
Interest cost |
|
|
6,888 |
|
|
|
1,057 |
|
|
|
4,886 |
|
|
|
482 |
|
Actuarial loss (gain) |
|
|
3,229 |
|
|
|
2,738 |
|
|
|
(45,932 |
) |
|
|
(13,181 |
) |
Benefits paid |
|
|
(10,807 |
) |
|
|
(947 |
) |
|
|
(9,200 |
) |
|
|
(863 |
) |
Liability (gain) loss due to settlement |
|
|
— |
|
|
|
(254 |
) |
|
|
— |
|
|
|
— |
|
Non-U.S. currency movement |
|
|
— |
|
|
|
1,009 |
|
|
|
— |
|
|
|
(3,061 |
) |
End of year |
|
|
144,187 |
|
|
|
33,984 |
|
|
|
143,814 |
|
|
|
29,935 |
|
Change in plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year |
|
|
111,760 |
|
|
|
2,087 |
|
|
|
149,578 |
|
|
|
2,017 |
|
Actual return on plan assets |
|
|
8,613 |
|
|
|
43 |
|
|
|
(31,835 |
) |
|
|
153 |
|
Company contributions |
|
|
3,051 |
|
|
|
1,028 |
|
|
|
3,217 |
|
|
|
949 |
|
Benefits paid |
|
|
(10,807 |
) |
|
|
(947 |
) |
|
|
(9,200 |
) |
|
|
(863 |
) |
Settlements gain |
|
|
— |
|
|
|
(254 |
) |
|
|
— |
|
|
|
— |
|
Non-U.S. currency movement |
|
|
— |
|
|
|
(28 |
) |
|
|
— |
|
|
|
(169 |
) |
End of year |
|
|
112,617 |
|
|
|
1,929 |
|
|
|
111,760 |
|
|
|
2,087 |
|
Funded status |
|
$ |
(31,570 |
) |
|
$ |
(32,055 |
) |
|
$ |
(32,054 |
) |
|
$ |
(27,848 |
) |
|
Amounts Recorded within Statement of Financial Position |
The following table provides amounts recorded within the account line items of the statements of financial position as of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
|
|
(in thousands) |
|
Retirement plans assets |
|
$ |
11,504 |
|
|
$ |
— |
|
|
$ |
11,761 |
|
|
$ |
— |
|
Accrued employees’ compensation and withholdings |
|
|
(3,110 |
) |
|
|
(1,255 |
) |
|
|
(3,055 |
) |
|
|
(1,191 |
) |
Retirement plans liabilities |
|
|
(39,964 |
) |
|
|
(30,800 |
) |
|
|
(40,760 |
) |
|
|
(26,657 |
) |
Funded status |
|
$ |
(31,570 |
) |
|
$ |
(32,055 |
) |
|
$ |
(32,054 |
) |
|
$ |
(27,848 |
) |
|
Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets |
Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
|
|
(in millions) |
|
Projected benefit obligation |
|
$ |
43.1 |
|
|
$ |
34.0 |
|
|
$ |
43.8 |
|
|
$ |
29.9 |
|
Accumulated benefit obligation |
|
|
42.6 |
|
|
|
32.5 |
|
|
|
42.3 |
|
|
|
28.6 |
|
Fair value of plan assets |
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
2.1 |
|
|
Net Periodic Pension and Postretirement Benefit Cost (Income) |
For the years ended December 31, 2023, 2022, and 2021, Teradyne’s net periodic pension cost (income) was comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
|
|
(in thousands) |
|
Components of Net Periodic Pension Cost (Income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
1,063 |
|
|
$ |
446 |
|
|
$ |
1,588 |
|
|
$ |
784 |
|
|
$ |
1,784 |
|
|
$ |
941 |
|
Interest cost |
|
|
6,888 |
|
|
|
1,057 |
|
|
|
4,886 |
|
|
|
482 |
|
|
|
4,427 |
|
|
|
337 |
|
Expected return on plan assets |
|
|
(5,194 |
) |
|
|
(45 |
) |
|
|
(2,927 |
) |
|
|
(75 |
) |
|
|
(3,858 |
) |
|
|
(67 |
) |
Net actuarial loss (gain) |
|
|
18 |
|
|
|
2,735 |
|
|
|
(11,170 |
) |
|
|
(13,259 |
) |
|
|
643 |
|
|
|
(2,223 |
) |
Settlement (gain) loss |
|
|
(209 |
) |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
(204 |
) |
|
|
— |
|
Total net periodic pension cost (income) |
|
$ |
2,566 |
|
|
$ |
4,198 |
|
|
$ |
(7,623 |
) |
|
$ |
(12,068 |
) |
|
$ |
2,792 |
|
|
$ |
(1,012 |
) |
|
Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation |
Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
Discount rate |
|
|
3.5 |
% |
|
|
3.5 |
% |
|
|
2.5 |
% |
|
|
1.1 |
% |
|
|
2.2 |
% |
|
|
0.7 |
% |
Expected return on plan assets |
|
|
4.8 |
|
|
|
1.8 |
|
|
|
2.0 |
|
|
|
4.0 |
|
|
|
2.4 |
|
|
|
3.5 |
|
Salary progression rate |
|
|
2.4 |
|
|
|
2.1 |
|
|
|
2.4 |
|
|
|
2.2 |
|
|
|
2.4 |
|
|
|
2.3 |
|
Weighted Average Assumptions to Determine Pension Obligations at December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
Discount rate |
|
|
4.7 |
% |
|
|
3.0 |
% |
|
|
4.9 |
% |
|
|
3.5 |
% |
Salary progression rate |
|
|
2.5 |
|
|
|
2.4 |
|
|
|
2.5 |
|
|
|
2.1 |
|
|
Weighted Average Pension Asset Allocations by Category |
The following table provides weighted average pension asset allocation by asset category at December 31, 2023 and 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
United States |
|
|
Foreign |
|
|
United States |
|
|
Foreign |
|
Fixed income securities |
|
|
94.0 |
% |
|
|
— |
% |
|
|
94.0 |
% |
|
|
— |
% |
Equity securities |
|
|
5.0 |
|
|
|
— |
|
|
|
5.0 |
|
|
|
— |
|
Other |
|
|
1.0 |
|
|
|
100.0 |
|
|
|
1.0 |
|
|
|
100.0 |
|
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
Target Asset Allocation and Index for Each Asset Category |
The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows:
|
|
|
|
|
|
|
Asset Category: |
|
Policy Index: |
|
Target Allocation |
|
U.S. corporate fixed income |
|
Bloomberg U.S. Corporate A or Better Index, 20+ Year Index |
|
|
43 |
% |
U.S. corporate fixed income |
|
Bloomberg U.S. Corporate A or Better Index, 5- 20 Year Index |
|
|
32 |
|
U.S. government fixed income |
|
Bloomberg U.S. 3 - 10 year Treasury Bond Index |
|
|
14 |
|
Global equity |
|
MSCI World Index |
|
|
5 |
|
High yield fixed income |
|
ICE BofA BB-B U.S. High Yield Constrained Index |
|
|
5 |
|
Cash |
|
ICE BofA 3-Month Treasury Bill Index |
|
|
1 |
|
|
Changes in Fair Value of Pension Assets |
The fair value of pension plan assets by asset category and by level at December 31, 2023 and December 31, 2022 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
|
United States |
|
|
Foreign |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
|
(in thousands) |
|
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
|
$ |
— |
|
|
$ |
89,971 |
|
|
$ |
— |
|
|
$ |
89,971 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. government securities |
|
|
— |
|
|
|
15,817 |
|
|
|
— |
|
|
|
15,817 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Global equity |
|
|
— |
|
|
|
5,691 |
|
|
|
— |
|
|
|
5,691 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,929 |
|
|
|
— |
|
|
|
1,929 |
|
Cash and cash equivalents |
|
|
1,138 |
|
|
|
— |
|
|
|
— |
|
|
|
1,138 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
1,138 |
|
|
$ |
111,479 |
|
|
$ |
— |
|
|
$ |
112,617 |
|
|
$ |
— |
|
|
$ |
1,929 |
|
|
$ |
— |
|
|
$ |
1,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
United States |
|
|
Foreign |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
|
(in thousands) |
|
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
|
$ |
— |
|
|
$ |
89,403 |
|
|
$ |
— |
|
|
$ |
89,403 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. government securities |
|
|
— |
|
|
|
15,631 |
|
|
|
— |
|
|
|
15,631 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Global equity |
|
|
— |
|
|
|
5,579 |
|
|
|
— |
|
|
|
5,579 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,087 |
|
|
|
— |
|
|
|
2,087 |
|
Cash and cash equivalents |
|
|
1,147 |
|
|
|
— |
|
|
|
— |
|
|
|
1,147 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
1,147 |
|
|
$ |
110,613 |
|
|
$ |
— |
|
|
$ |
111,760 |
|
|
$ |
— |
|
|
$ |
2,087 |
|
|
$ |
— |
|
|
$ |
2,087 |
|
|
Expected Future Benefit Payments |
Future benefit payments are expected to be paid as follows:
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
Foreign |
|
|
|
(in thousands) |
|
2024 |
|
$ |
10,210 |
|
|
$ |
1,312 |
|
2025 |
|
|
9,720 |
|
|
|
1,068 |
|
2026 |
|
|
9,863 |
|
|
|
1,191 |
|
2027 |
|
|
10,792 |
|
|
|
1,301 |
|
2028 |
|
|
10,795 |
|
|
|
1,238 |
|
2029-2032 |
|
|
51,857 |
|
|
|
8,832 |
|
|
Postretirement Benefit Plans |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations |
The December 31 balances of the postretirement assets and obligations are shown below:
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Assets and Obligations |
|
|
|
|
|
|
Change in benefit obligation: |
|
|
|
|
|
|
Projected benefit obligation: |
|
|
|
|
|
|
Beginning of year |
|
$ |
5,345 |
|
|
$ |
7,210 |
|
Service cost |
|
|
34 |
|
|
|
64 |
|
Interest cost |
|
|
299 |
|
|
|
177 |
|
Actuarial loss (gain) |
|
|
155 |
|
|
|
(1,155 |
) |
Benefits paid |
|
|
(1,413 |
) |
|
|
(950 |
) |
Special termination benefits |
|
|
2,513 |
|
|
|
— |
|
End of year |
|
|
6,933 |
|
|
|
5,345 |
|
Change in plan assets: |
|
|
|
|
|
|
Fair value of plan assets: |
|
|
|
|
|
|
Beginning of year |
|
|
— |
|
|
|
— |
|
Company contributions |
|
|
1,413 |
|
|
|
950 |
|
Benefits paid |
|
|
(1,413 |
) |
|
|
(950 |
) |
End of year |
|
|
— |
|
|
|
— |
|
Funded status |
|
$ |
(6,933 |
) |
|
$ |
(5,345 |
) |
|
Amounts Recorded within Statement of Financial Position |
The following table provides amounts recorded within the account line items of financial position as of December 31:
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Accrued employees’ compensation and withholdings |
|
$ |
(1,508 |
) |
|
$ |
(853 |
) |
Retirement plans liabilities |
|
|
(5,425 |
) |
|
|
(4,492 |
) |
Funded status |
|
$ |
(6,933 |
) |
|
$ |
(5,345 |
) |
|
Amounts Recognized in Accumulated Other Comprehensive Income (loss) |
The following table provides amounts recognized in accumulated other comprehensive income (loss) as of December 31:
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Prior service credit, before tax |
|
$ |
(23 |
) |
|
$ |
(31 |
) |
Deferred taxes |
|
|
(1,691 |
) |
|
|
(1,689 |
) |
Total recognized in other comprehensive income (loss), net of tax |
|
$ |
(1,714 |
) |
|
$ |
(1,720 |
) |
|
Net Periodic Pension and Postretirement Benefit Cost (Income) |
For the years ended December 31, 2023, 2022, and 2021, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
(in thousands) |
|
Components of Net Periodic Postretirement Benefit Cost (income): |
|
Service cost |
|
$ |
34 |
|
|
$ |
64 |
|
|
$ |
64 |
|
Interest cost |
|
|
299 |
|
|
|
177 |
|
|
|
170 |
|
Amortization of prior service credit |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
Net actuarial loss (gain) |
|
|
155 |
|
|
|
(1,155 |
) |
|
|
(433 |
) |
Special termination benefits |
|
|
2,513 |
|
|
|
— |
|
|
|
— |
|
Total net periodic postretirement benefit cost (income) |
|
|
2,992 |
|
|
|
(923 |
) |
|
|
(208 |
) |
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: |
|
|
|
|
|
|
|
|
|
Reversal of amortization items: |
|
|
|
|
|
|
|
|
|
Prior service credit |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
Total recognized in other comprehensive income |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
Total recognized in net periodic postretirement cost (income) and other comprehensive income |
|
$ |
3,001 |
|
|
$ |
(914 |
) |
|
$ |
(199 |
) |
|
Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation |
Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Discount rate |
|
|
5.0 |
% |
|
|
2.6 |
% |
|
|
2.2 |
% |
Initial health care cost trend rate |
|
|
7.2 |
|
|
|
7.3 |
|
|
|
7.3 |
|
Ultimate health care cost trend rate |
|
|
4.5 |
|
|
|
4.5 |
|
|
|
4.5 |
|
Year in which ultimate health care cost trend rate is reached |
|
2032 |
|
|
2029 |
|
|
2029 |
|
Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Discount rate |
|
|
4.7 |
% |
|
|
5.0 |
% |
|
|
2.6 |
% |
Initial health care trend |
|
|
7.7 |
|
|
|
7.2 |
|
|
|
7.3 |
|
Ultimate health care trend |
|
|
4.5 |
|
|
|
4.5 |
|
|
|
4.5 |
|
Medical cost trend rate decrease to ultimate rate in year |
|
|
2033 |
|
|
|
2032 |
|
|
|
2029 |
|
|
Expected Future Benefit Payments |
Future benefit payments are expected to be paid as follows:
|
|
|
|
|
|
|
Benefit Payments |
|
|
|
(in thousands) |
|
2024 |
|
$ |
1,508 |
|
2025 |
|
|
924 |
|
2026 |
|
|
701 |
|
2027 |
|
|
637 |
|
2028 |
|
|
568 |
|
2029-2032 |
|
|
2,004 |
|
|