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Restructuring And Other, Net

6 Months Ended

Jul. 03, 2011

M. Restructuring and Other, Net

Restructuring

In response to a downturn in the industry in 2008 and 2009, Teradyne initiated restructuring activities across all segments to reduce costs, principally through headcount reductions and facility consolidations. The tables below represent activity related to these actions. The remaining accrual for severance and benefits is reflected in the accrued employees' compensation and withholdings account on the balance sheet and is expected to be paid by July 2012. The remaining accrual for lease payments on vacated facilities is reflected in the other accrued liabilities account and the long-term other accrued liabilities account and is expected to be paid over the lease terms, the latest of which expires in 2013. Teradyne expects to pay approximately $0.9 million against the lease accruals over the next twelve months. Teradyne's future lease commitments are net of expected sublease income of $0.8 million as of July 3, 2011.


	Severance and Benefits			Facility Exit Costs			Total
	(in thousands)
*Pre-2010 Activities*
Balance at December 31, 2009	$	2,905		$	10,166		$	13,071
Change in estimate		240			(2,672	)		(2,432	)
Cash payments		(3,124	)		(4,193	)		(7,317	)

Balance at December 31, 2010		21			3,301			3,322
Change in estimate		—			(432	)		(432	)
Cash payments		(21	)		(242	)		(263	)

Balance at April 3, 2011		—			2,627			2,627
Cash payments		—			(301	)		(301	)

Balance at July 3, 2011	$	—		$	2,326		$	2,326

*2010 Activities*
Q1 2010 Activity:
Provision	$	405		$	—		$	405
Cash payments		(405	)		—			(405	)

Balance at December 31, 2010	$	—		$	—		$	—

Q2 2010 Activity:
Provision	$	890		$	—		$	890
Cash payments		(402	)		—			(402	)

Balance at December 31, 2010		488			—			488
Provision		202			—			202
Cash payments		(690	)		—			(690	)

Balance at April 3, 2011	$	—		$	—		$	—

Q3 2010 Activity:
Provision	$	382		$	—		$	382
Cash payments		(72	)		—			(72	)
Other		(184	)		—			(184	)

Balance at December 31, 2010		126			—			126
Change in estimate		(47	)		—			(47	)
Cash payments		(79	)		—			(79	)

Balance at April 3, 2011	$	—		$	—		$	—

Q4 2010 Activity:
Provision	$	98		$	—		$	98

Balance at December 31, 2010		98			—			98
Provision		117			—			117
Cash payments		(215	)		—			(215	)

Balance at April 3, 2011	$	—		$	—		$	—

*2011 Activity*
Q1 2011 Activity:
Provision	$	572		$	—		$	572
Cash payments		(241	)		—			(241	)

Balance at April 3, 2011		331			—			331
Cash payments		(154	)		—			(154	)

Balance at July 3, 2011	$	177		$	—		$	177

Q2 2011 Activity:
Provision	$	344		$	—		$	344

Balance at July 3, 2011	$	344		$	—		$	344

Balance at July 3, 2011	$	521		$	2,326		$	2,847

During the six months ended July 3, 2011, Teradyne recorded the following restructuring charges:

Q2 2011 Action:

•

$0.3 million of severance charges related to headcount reductions of 2 people in Semiconductor Test segment.

Q1 2011 Action:

•

$0.6 million of severance charges related to headcount reductions of 5 people in Semiconductor Test segment.

Pre-2010 Actions:

•

($0.4) million related to changes in the estimated exit costs related to the Westford, MA and Poway, CA facilities in System Test Group segment, and the North Reading, MA facility across both segments.

Q2 2010 Actions:

•

$0.2 million related to a change in the estimated severance benefits related to headcount reduction activities across both segments.

Q3 2010 Actions:

•

$0.1 million related to a change in the estimated severance benefits related to headcount reduction activities across both segments.

During the six months ended July 4, 2010, Teradyne recorded the following restructuring charges:

Q1 2010 Actions:

•

$0.4 million of severance charges related to headcount reductions of 4 people in Semiconductor Test segment.

Q2 2010 Actions:

•

$0.4 million of severance charges related to headcount reductions of 6 people in Systems Test Group segment.

Q2 2009 Actions:

•

$0.5 million related to a change in the estimated severance benefits related to headcount reduction activities across both segments.

Other

During the six months ended July 3, 2011, Teradyne recorded a $0.9 million charge related to a non-U.S. pension settlement.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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