10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 1, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to            

Commission File No. 001-06462

TERADYNE, INC.

(Exact name of registrant as specified in its charter)

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)

978-370-2700

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The number of shares outstanding of the registrant’s only class of Common Stock as of May 7, 2012 was 186,671,490 shares.

TERADYNE, INC.

INDEX

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited):
	Condensed Consolidated Balance Sheets as of April 1, 2012 and December 31, 2011		3
	Condensed Consolidated Statements of Operations for the Three Months Ended April  1, 2012 and April 3, 2011		4
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended April 1, 2012 and April 3, 2011		5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended April  1, 2012 and April 3, 2011		6
	Notes to Condensed Consolidated Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		35
Item 4.	Controls and Procedures		36
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		37
Item 1A.	Risk Factors		37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37
Item 4.	Mine Safety Disclosures		37
Item 6.	Exhibits		38

2

PART I

Item 1: Financial Statements

TERADYNE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	April 1, 2012		December 31, 2011
	(in thousands, except per share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	533,396	$	573,736
Marketable securities		87,223		96,502
Accounts receivable, less allowance for doubtful accounts of $4,102 at April 1, 2012 and December 31, 2011		221,547		129,330
Inventories:
Parts		89,125		109,315
Assemblies in process		28,576		33,856
Finished goods		20,529		16,892
		138,230		160,063
Deferred tax assets		56,601		53,948
Prepayments and other current assets		83,994		86,308
Total current assets		1,120,991		1,099,887
Property, plant and equipment		809,249		798,194
Less: Accumulated depreciation		570,632		565,987
Net property, plant and equipment		238,617		232,207
Long-term marketable securities		121,512		84,407
Retirement plan assets		9,244		8,840
Intangible assets, net		374,546		392,975
Goodwill		352,778		352,778
Other assets		20,460		17,545
Total assets	$	2,238,148	$	2,188,639
LIABILITIES
Current liabilities:
Accounts payable	$	106,381	$	69,842
Accrued employees’ compensation and withholdings		59,321		90,427
Deferred revenue and customer advances		86,622		78,670
Contingent consideration		61,210		68,892
Other accrued liabilities		59,857		63,280
Current debt		2,431		2,573
Total current liabilities		375,822		373,684
Long-term deferred revenue and customer advances		23,885		33,541
Retirement plan liabilities		78,251		76,638
Deferred tax liabilities		29,395		16,049
Long-term other accrued liabilities		20,299		23,711
Long-term debt		161,803		159,956
Total liabilities		689,455		683,579
Commitments and contingencies (Note O)
SHAREHOLDERS’ EQUITY
Common stock, $0.125 par value, 1,000,000 shares authorized, 186,418 shares and 183,587 shares issued and outstanding at April 1, 2012 and December 31, 2011, respectively		23,302		22,948
Additional paid-in capital		1,302,660		1,293,130
Accumulated other comprehensive income		4,933		4,746
Retained earnings		217,798		184,236
Total shareholders’ equity		1,548,693		1,505,060
Total liabilities and shareholders’ equity	$	2,238,148	$	2,188,639

The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s

Annual Report on Form 10-K for the year ended December 31, 2011, are an integral part of the condensed

consolidated financial statements.

3

TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands, except per share amounts)
Net revenues:
Products	$	330,891		$	315,719
Services		65,777			61,442
Total net revenues		396,668			377,161
Cost of revenues:
Cost of products		174,001			152,880
Cost of services		31,741			31,389
Total cost of revenues		205,742			184,269
Gross profit		190,926			192,892
Operating expenses:
Engineering and development		60,135			47,144
Selling and administrative		67,777			57,731
Acquired intangible asset amortization		18,429			7,291
Restructuring and other		(1,825	)		413
Total operating expenses		144,516			112,579
Income from operations		46,410			80,313
Interest income		893			1,287
Interest expense and other, net		(6,059	)		(6,176	)
Income from continuing operations before income taxes		41,244			75,424
Provision for income taxes		7,680			5,486
Income from continuing operations		33,564			69,938
Income from discontinued operations before income taxes		—			1,436
Benefit from income taxes		—			(267	)
Income from discontinued operations		—			1,703
Gain on disposal of discontinued operations (net of tax of $4,578)		—			25,203
Net income	$	33,564		$	96,844
Net income per common share from continuing operations:
Basic	$	0.18		$	0.38
Diluted	$	0.15		$	0.30
Net income per common share:
Basic	$	0.18		$	0.52
Diluted	$	0.15		$	0.42
Weighted average common share—basic		185,838			184,720
Weighted average common share—diluted		231,153			232,080

The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s

Annual Report on Form 10-K for the year ended December 31, 2011, are an integral part of the condensed

consolidated financial statements.

4

TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Net income	$	33,564		$	96,844
Other comprehensive income, net of tax:
Foreign currency translation reclassification adjustment included in net income		—			2,266
Unrealized gains on investments:
Unrealized gains on investments arising during period		744			199
Less: Reclassification adjustment for gains included in net income		(466	)		(184	)
		278			15
Defined benefit pension and post-retirement plans:
Amortization of prior service (benefit) cost included in net periodic pension and post-retirement costs		(92	)		6
Other comprehensive income		186			2,287
Comprehensive income	$	33,750		$	99,131

The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s

Annual Report on Form 10-K for the year ended December 31, 2011, are an integral part of the condensed

consolidated financial statements.

5

TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Cash flows from operating activities:
Net income	$	33,564		$	96,844
Less: Income from discontinued operations		—			1,703
Less: Gain on disposal of discontinued operations		—			25,203
Income from continuing operations		33,564			69,938
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation		12,288			13,057
Amortization		21,815			10,355
Stock-based compensation		10,766			7,464
Provision for excess and obsolete inventory		1,574			4,627
Non cash charge for the sale of inventories revalued at the date of acquisition		4,871			—
Contingent consideration adjustment		(1,858	)		—
Deferred taxes		7,699			—
Other		(454	)		618
Changes in operating assets and liabilities, net of businesses sold:
Accounts receivable		(92,217	)		(17,498	)
Inventories		23,636			(10,709	)
Other assets		1,885			(2,266	)
Deferred revenue and customer advances		(1,704	)		(24,553	)
Accounts payable and other accrued expenses		(9,635	)		(26,014	)
Retirement plan contributions		(1,061	)		(1,176	)
Net cash provided by continuing operations		11,169			23,843
Net cash used for discontinued operations		—			(4,225	)
Net cash provided by operating activities		11,169			19,618
Cash flows from investing activities:
Investments in property, plant and equipment		(27,074	)		(22,131	)
Purchases of available-for-sale marketable securities		(80,095	)		(211,289	)
Proceeds from sales and maturities of available-for-sale marketable securities		52,805			188,448
Net cash used for continuing operations		(54,364	)		(44,972	)
Net cash provided by discontinued operations		—			39,030
Net cash used for investing activities		(54,364	)		(5,942	)
Cash flows from financing activities:
Issuance of common stock under employee stock option and stock purchase plans		9,925			10,076
Payments of contingent consideration		(5,824	)		—
Payments of long-term debt		(1,246	)		(1,222	)
Net cash provided by financing activities		2,855			8,854
(Decrease) Increase in cash and cash equivalents		(40,340	)		22,530
Cash and cash equivalents at beginning of period		573,736			397,737
Cash and cash equivalents at end of period	$	533,396		$	420,267

The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne’s

Annual Report on Form 10-K for the year ended December 31, 2011, are an integral part of the condensed

consolidated financial statements.

6

TERADYNE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

A. The Company

Teradyne, Inc. (“Teradyne”) is a leading global supplier of automatic test equipment. Teradyne’s automatic test equipment products and services include:

• semiconductor test (“Semiconductor Test”) systems,

• military/aerospace (“Mil/Aero”) test instrumentation and systems, storage test (“Storage Test”) systems, and circuit-board test and inspection (“Commercial Board Test”) systems (collectively these products represent “Systems Test Group”), and

• wireless test (“Wireless Test”) systems.

B. Accounting Policies

Basis of Presentation

The condensed consolidated interim financial statements include the accounts of Teradyne and its subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of such interim financial statements. Certain prior year’s amounts were reclassified to conform to the current year presentation. The December 31, 2011 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, filed with the SEC on February 29, 2012 for the year ended December 31, 2011.

Preparation of Financial Statements and Use of Estimates

The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates.

C. Change in Accounting Principle

Effective January 1, 2012, Teradyne changed the method of recognizing actuarial gains and losses for its defined benefit pension plans and postretirement benefit plan and calculating the expected return on plan assets for its defined benefit pension plans. Historically, Teradyne recognized net actuarial gains and losses in accumulated other comprehensive income within shareholders’ equity on the consolidated balance sheets on an annual basis and amortized them into operating results over the average remaining years of service of the plan participants, to the extent such gains and losses were outside of a corridor. In addition, Teradyne, historically, calculated the expected return on plan assets using a calculated market-related value of plan assets. Teradyne has elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne has also elected to calculate the expected return on plan assets using the fair value of the plan assets.

While the previous method of recognizing pension and other postretirement benefit expense was considered acceptable, Teradyne believes that this new method is preferable as it eliminates the delay in recognizing gains and losses in its operating results and it will improve the transparency by faster recognition of the effects of

7

economic and interest rate trends on plan obligations and investments. These actuarial gains and losses are generally measured annually as of December 31 and, accordingly, will be recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. In accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections, all prior periods presented in this Quarterly Report on Form 10-Q have been adjusted to apply the new accounting method retrospectively. This accounting change did not impact the financial position of the reportable segments.

Had these changes not been made, net income for the three months ended April 1, 2012 would have been $29.7 million compared to the $33.6 million actually recorded. Diluted earnings per share would have been $0.13 compared to $0.15.

The effects of the change in accounting principle on the condensed consolidated financial statements for 2011 are presented below. We have condensed the comparative financial statements for financial statement line items that were not affected by the change in accounting principle.

Condensed Consolidated Balance Sheets

	December 31, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Assets:
Total assets	$	2,188,639			—		$	2,188,639
Liabilities:
Total liabilities		683,579			—			683,579
Shareholders’ Equity:
Common stock		22,948			—			22,948
Additional paid-in capital		1,293,130			—			1,293,130
Accumulated other comprehensive (loss) income		(129,875	)		134,621			4,746
Retained earnings		318,857			(134,621	)		184,236
Total shareholders’ equity		1,505,060			—			1,505,060
Total liabilities and shareholders’ equity	$	2,188,639			—		$	2,188,639

8

Condensed Consolidated Statements of Operations

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands, except per share amounts)
Net revenues		377,161			—			377,161
Cost of revenues		184,752			(483	)		184,269
Gross profit		192,409			483			192,892
Operating expenses:
Engineering and development		47,977			(833	)		47,144
Selling and administrative		58,229			(498	)		57,731
Acquired intangible asset amortization		7,291			—			7,291
Restructuring and other		413			—			413
Total operating expenses		113,910			(1,331	)		112,579
Income from operations		78,499			1,814			80,313
Interest income		1,287			—			1,287
Interest expense and other, net		(6,176	)		—			(6,176	)
Income from continuing operations before income taxes		73,610			1,814			75,424
Provision for income taxes		5,486			—			5,486
Income from continuing operations		68,124			1,814			69,938
Income from discontinued operations before income taxes		1,278			158			1,436
Benefit from income taxes		(267	)		—			(267	)
Income from discontinued operations		1,545			158			1,703
Gain on disposal of discontinued operations (net of tax of $4,578)		25,203			—			25,203
Net income	$	94,872		$	1,972		$	96,844
Net income per common share from continuing operations:
Basic	$	0.37		$	0.01		$	0.38
Diluted	$	0.29		$	0.01		$	0.30
Net income per common share:
Basic	$	0.51		$	0.01		$	0.52
Diluted	$	0.41		$	0.01		$	0.42
Weighted average common share—basic		184,720						184,720
Weighted average common share—diluted		232,080						232,080

9

Condensed Consolidated Statements of Comprehensive Income

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Net income	$	94,872		$	1,972		$	96,844
Other comprehensive income, net of tax:
Foreign currency translation reclassification adjustment included in net income		2,266			—			2,266
Unrealized gains on investments		15			—			15
Defined benefit pension and post-retirement plans:
Actuarial losses arising during period, net of tax of ($15), $15		(51	)		51			—
Settlement gain, net of tax of $35, ($35)		60			(60	)		—
Less Amortization included in net periodic pension and post-retirement costs:
Actuarial losses, net of tax of $11, ($11)		2,078			(2,078	)		—
Prior service costs, net of tax of $0		6			—			6
		2,093			(2,087	)		6
Other comprehensive income		4,374			(2,087	)		2,287
Comprehensive income	$	99,246		$	(115	)	$	99,131

Condensed Consolidated Statements of Cash Flows

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Cash flows from operating activities:
Net income	$	94,872		$	1,972		$	96,844
Less: Income from discontinued operations		1,545			158			1,703
Less: Gain on disposal of discontinued operations		25,203			—			25,203
Income from continuing operations		68,124			1,814			69,938
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation		13,057			—			13,057
Amortization		12,442			(2,087	)		10,355
Stock-based compensation		7,464			—			7,464
Provision for excess and obsolete inventory		4,627			—			4,627
Other		618			—			618
Changes in operating assets and liabilities, net of businesses sold:
Accounts receivable		(17,498	)		—			(17,498	)
Inventories		(10,709	)		—			(10,709	)
Other assets		(2,539	)		273			(2,266	)
Deferred revenue and customer advances		(24,553	)		—			(24,553	)
Accounts payable and other accrued expenses		(26,014	)		—			(26,014	)
Retirement plan contributions		(1,176	)		—			(1,176	)

10

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change		As Adjusted
	(in thousands)
Net cash provided by continuing operations		23,843			—		23,843
Net cash used for discontinued operations		(4,225	)		—		(4,225	)
Net cash provided by operating activities		19,618			—		19,618
Net cash used for investing activities		(5,942	)		—		(5,942	)
Net cash provided by financing activities		8,854			—		8,854
Increase in cash and cash equivalents		22,530			—		22,530
Cash and cash equivalents at beginning of period		397,737			—		397,737
Cash and cash equivalents at end of period	$	420,267		$	—	$	420,267

D. Recently Issued Accounting Pronouncements

In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This ASU is intended to enhance a financial statement user’s ability to understand the effects of netting arrangements on an entity’s financial statements, including financial instruments and derivative instruments that are either offset or subject to an enforceable master netting or similar arrangement. The scope of this ASU includes derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. This ASU includes enhanced disclosure requirements, including both gross and net information about instruments and transactions eligible for offset or subject to an agreement similar to a master netting arrangement. The provisions of this ASU will be applied retrospectively for interim and annual periods beginning on or after January 1, 2013. Teradyne is currently evaluating the impact of this new ASU.

E. Discontinued Operations

On March 21, 2011, Teradyne completed the sale of its Diagnostic Solutions business unit, which was included in the Systems Test Group segment, to SPX Corporation for $40.2 million in cash. Teradyne sold this business as its growth potential as a stand-alone business within Teradyne was significantly less than if it was part of a larger automotive supplier. The financial information for Diagnostic Solutions has been reclassified to discontinued operations for all periods presented. Net revenues and income from discontinued operations for the three months ended April 3, 2011 were as follows:

	April 3, 2011
	(in thousands)
Net revenues	$	9,086
Income from discontinued operations before income taxes	$	1,436
Gain from disposal of discontinued operations before income taxes		29,781
Income tax provision		4,311
Income from discontinued operations	$	26,906

F. Financial Instruments and Derivatives

Financial Instruments

Teradyne uses the market and income approach to value its financial instruments and there was no change in valuation techniques used by Teradyne during the three months ended April 1, 2012 and April 3, 2011. As defined in ASC 820-10, “Fair Value Measurements and Disclosures”, fair value is the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market

11

participants. ASC 820-10 requires that assets and liabilities are carried at fair value and are classified in one of the following three categories:

Level 1: Quoted prices in active markets for identical assets as of the reporting date.

Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices.

Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data.

During the three months ended April 1, 2012 and April 3, 2011, there were no significant transfers in and out of Level 1, Level 2 and Level 3.

The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of April 1, 2012 and December 31, 2011.

	April 1, 2012
	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
Available for sale securities:
Money market funds	$	350,544	$	—	$	—	$	350,544
U.S government agency securities		—		91,293		—		91,293
Corporate debt securities		—		46,069		—		46,069
Commercial paper		—		33,539		—		33,539
U.S Treasury securities		23,600		—		—		23,600
Certificates of deposit and time deposits		—		16,183		—		16,183
Equity and debt mutual funds		9,167		—		—		9,167
Non-U.S. government securities		282		—		—		282
Total		383,593		187,084		—		570,677
Derivatives		—		146		—		146
Total	$	383,593	$	187,230	$	—	$	570,823
Liabilities
Contingent consideration	$	—	$	—	$	61,210	$	61,210
Total	$	—	$	—	$	61,210	$	61,210

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	350,544	$	11,398	$	—	$	361,942
Marketable securities		4,011		83,212		—		87,223
Long-term marketable securities		29,038		92,474		—		121,512
Prepayments and other current assets		—		146		—		146
	$	383,593	$	187,230	$	—	$	570,823
Liabilities
Contingent consideration	$	—	$	—	$	61,210	$	61,210
	$	—	$	—	$	61,210	$	61,210

12

	December 31, 2011
	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
Available for sale securities:
Money market funds	$	396,329	$	—	$	—	$	396,329
U.S government agency securities		—		83,197		—		83,197
Corporate debt securities		—		44,829		—		44,829
Commercial paper		—		29,924		—		29,924
Certificates of deposit and time deposits		—		16,432		—		16,432
U.S Treasury securities		14,180		—		—		14,180
Equity and debt mutual funds		8,237		—		—		8,237
Non-U.S. government securities		274		—		—		274
Total	$	419,020	$	174,382	$	—	$	593,402
Liabilities
Derivatives	$	—	$	314	$	—	$	314
Contingent consideration		—		—		68,892		68,892
Total	$	—	$	314	$	68,892	$	69,206

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	396,329	$	16,164	$	—	$	412,493
Marketable securities		9,044		87,458		—		96,502
Long-term marketable securities		13,647		70,760		—		84,407
	$	419,020	$	174,382	$	—	$	593,402
Liabilities
Other accrued liabilities	$	—	$	314	$	—	$	314
Contingent consideration		—		—		68,892		68,892
	$	—	$	314	$	68,892	$	69,206

Contingent consideration is measured at fair value and is based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions and estimates to forecast a range of outcomes for the contingent consideration. Teradyne assesses these assumptions and estimates on a quarterly basis as additional data impacting the assumptions is obtained. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within the condensed consolidated statements of operations.

13

The following table provides quantitative information associated with the fair value measurement of the Teradyne’s Level 3 inputs:

Liability	Fair Value (Thousands)		Valuation Technique	Unobservable Inputs	Weighted Average
Contingent consideration	$	61,210	Income approach— discounted cash flow	Revenue earn-out—probability of low case (scenario) for calendar year 2012 revenue.		70	%
				Revenue earn-out—probability of high case (scenario) for calendar year 2012 revenue.		30	%
				Discount rate for revenue earn-out		3.5	%
				Discount rate for cellular earn-out		3.5	%

The significant unobservable inputs used in the fair value measurement of contingent consideration are the probabilities of successful achievement of calendar year 2012 revenues, the quarterly period in which the revenues are expected to be achieved and a discount rate. Increases or decreases in any of the probabilities of success would result in a higher or lower fair value measurement. Increases or decreases in the period in which milestones will be achieved would result in a lower or higher fair value measurement, respectively.

The following table represents changes in the fair value of Level 3 contingent consideration:

	Contingent consideration
	(in thousands)
Balance at December 31, 2011	$	68,892
Fair value adjustment		(1,858	)
Payment		(5,824	)
Balance at April 1, 2012	$	61,210

During the three months ended April 1, 2012, Teradyne recorded a net gain of $0.3 million from sales of marketable securities. During the three months ended April 3, 2011, Teradyne recorded a net loss of $0.2 million from sales of marketable securities.

Realized losses from sales of marketable securities are included in interest expense and other. Realized gains from sales of marketable securities are included in interest income.

The carrying amounts and fair values of financial instruments at April 1, 2012 and December 31, 2011 were as follows:

	April 1, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Cash equivalents	$	361,942	$	361,942	$	412,493	$	412,493
Marketable securities		208,735		208,735		180,909		180,909
Convertible debt(1)		159,373		595,175		156,098		485,925
Japan loan		4,861		4,861		6,431		6,431

(1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion feature.

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The fair values of cash and cash equivalents, accounts receivable, net and accounts payable approximate the carrying amount due to the short-term maturities of these instruments.

At April 1, 2012 and December 31, 2011, these investments were reported as follows:

	April 1, 2012
	Available-for-Sale									Fair Market Value  of Investments with Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
Money market funds	$	350,544	$	—	$	—		$	350,544	$	—
U.S. government agency securities		91,178		163		(48	)		91,293		26,014
Corporate debt securities		44,602		1,514		(47	)		46,069		13,295
Commercial paper		33,542		6		(9	)		33,539		9,482
U.S. Treasury securities		23,568		50		(18	)		23,600		6,968
Certificates of deposit and time deposits		16,186		—		(3	)		16,183		5,810
Equity and debt mutual funds		8,230		939		(2	)		9,167		135
Non-U.S. government securities		265		17		—			282		—
	$	568,115	$	2,689	$	(127	)	$	570,677	$	61,704

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value  of Investments with Unrealized Losses
	(in thousands)
Cash and cash equivalents	$	361,942	$	—	$	—		$	361,942	$	—
Marketable securities		87,222		19		(18	)		87,223		28,698
Long-term marketable securities		118,951		2,670		(109	)		121,512		33,006
	$	568,115	$	2,689	$	(127	)	$	570,677	$	61,704

	December 31, 2011
	Available-for-Sale									Fair Market Value  of Investments with Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
Money market funds	$	396,329	$	—	$	—		$	396,329	$	—
U.S. government agency securities		83,070		152		(25	)		83,197		28,510
Corporate debt securities		43,077		1,893		(141	)		44,829		17,033
Commercial paper		29,932		2		(10	)		29,924		9,479
Certificates of deposit and time deposits		16,437		—		(5	)		16,432		5,800
U.S. Treasury securities		14,141		39		—			14,180		—
Equity and debt mutual funds		7,876		477		(116	)		8,237		3,749
Non-U.S. government securities		256		18		—			274		—
	$	591,118	$	2,581	$	(297	)	$	593,402	$	64,571

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Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value  of Investments with Unrealized Losses
	(in thousands)
Cash and cash equivalents	$	412,493	$	—	$	—		$	412,493	$	—
Marketable securities		96,518		24		(40	)		96,502		35,595
Long-term marketable securities		82,107		2,557		(257	)		84,407		28,976
	$	591,118	$	2,581	$	(297	)	$	593,402	$	64,571

As of April 1, 2012, the fair market value of investments with unrealized losses totaled $61.7 million. Of this value, $1.1 million had unrealized losses greater than one year and $60.6 million had unrealized losses less than one year. As of December 31, 2011, the fair market value of investments with unrealized losses totaled $64.6 million. Of this value, $2.4 million had unrealized losses greater than one year and $62.2 million had unrealized losses less than one year.

Derivatives

Teradyne conducts business in a number of foreign countries, with certain transactions denominated in local currencies. The purpose of Teradyne’s foreign currency management is to minimize the effect of exchange rate fluctuations on certain foreign currency denominated net monetary assets. Teradyne does not use derivative financial instruments for trading or speculative purposes.

To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings, and is used to offset the change in fair value of the monetary assets and liabilities denominated in foreign currencies.

The notional amount of foreign exchange contracts hedging monetary assets and liabilities denominated in foreign currencies was $71.4 million and $85.4 million at April 1, 2012 and December 31, 2011, respectively.

The following table summarizes the fair value of derivative instruments at April 1, 2012 and December 31, 2011.

	Balance Sheet Location	April 1, 2012		December 31, 2011
		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Prepayments and other current assets	$	146	$	—
Foreign exchange contracts	Other accrued liabilities		—		314
		$	146	$	314

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The following table summarizes the effect of derivative instruments in the statement of operations recognized during the three months ended April 1, 2012 and April 3, 2011. The table does not reflect the corresponding gains (losses) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies.

	Location of Gains Recognized in Statement of Operations	For the Three Months Ended
		April 1, 2012		April 3, 2011
		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Interest expense and other, net	$	2,880	$	827
		$	2,880	$	827

See Note G “Debt” regarding derivatives related to convertible senior notes.

G. Debt

Loan Agreement

On March 31, 2009, Teradyne K.K., Teradyne’s wholly-owned subsidiary in Japan, entered into a loan agreement with a local bank in Japan to borrow approximately $10.0 million. The loan has a term of 5 years and a fixed interest rate of 0.81%. Approximately $6.0 million of the loan is collateralized by a real estate mortgage on Teradyne K.K.’s building and land in Kumamoto, Japan and approximately $4.0 million is unsecured. Teradyne, Inc. has guaranteed payment of the loan obligation. The loan is amortized over the term of the loan with semiannual principal payments of approximately $1.0 million payable on September 30 and March 30 each year. At April 1, 2012, approximately $2.4 million of the outstanding loan principal is included in current debt and approximately $2.4 million is classified as long-term debt.

Convertible Senior Notes

In April 2009, Teradyne issued 4.50% convertible senior notes (the “Notes”) at an aggregate principal amount of $190 million. The Notes will mature on March 15, 2014, unless earlier repurchased by Teradyne or converted. The Notes are senior unsecured obligations and rank equally with all of Teradyne’s existing and future senior debt and senior to any of Teradyne’s subordinated debt.

The Notes may be converted, under certain circumstances and during certain periods, at an initial conversion rate of approximately 182.65 shares of Teradyne’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $5.48, a 25% conversion premium based on the last reported sale price of $4.38 per share of Teradyne’s common stock on March 31, 2009. The conversion rate is subject to adjustment in certain circumstances.

During the three months ended April 1, 2012, the following circumstance that allows holders to convert their Notes at their option prior to December 15, 2013 occurred: the last reported sale price of Teradyne’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeded 130% of the conversion price in effect on the last trading day of the immediately preceding calendar quarter. As of May 11, 2012, no holders have exercised their option to convert their Notes.

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Concurrently with the offering of the Notes, Teradyne entered into a convertible note hedge transaction with a strike price equal to the initial conversion price of the Notes, or approximately $5.48. The convertible note hedge allows Teradyne to receive shares of its common stock and/or cash related to the excess conversion value that it would pay to the holders of the Notes upon conversion. The convertible note hedges will cover, subject to customary antidilution adjustments, approximately 34,703,196 shares of Teradyne’s common stock. Teradyne paid approximately $64.6 million for the convertible note hedges.

Separately, Teradyne entered into a warrant transaction with a strike price of approximately $7.67 per share, which was 75% higher than the closing price of Teradyne’s common stock on March 31, 2009. Teradyne received approximately $43.0 million for the warrants.

The convertible note hedge and warrant transaction will generally have the effect of increasing the conversion price of the Notes to approximately $7.67 per share of Teradyne’s common stock, representing a 75% conversion premium based upon the closing price of Teradyne’s common stock on March 31, 2009.

The Notes are classified as long-term debt in the balance sheet at April 1, 2012 and December 31, 2011. The tables below represent the components of Teradyne’s convertible senior notes:

	April 1, 2012		December 31, 2011
	(in thousands)
Debt principal	$	190,000	$	190,000
Unamortized debt discount		30,627		33,902
Net carrying amount of the convertible debt	$	159,373	$	156,098

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Contractual interest expense	$	2,161	$	2,209
Amortization of the discount component and debt issue fees		3,479		3,061
Total interest expense on the convertible debt	$	5,640	$	5,270

As of April 1, 2012, the unamortized discount was $30.6 million, which will be amortized over approximately 2.0 years, and the carrying amount of the equity component was $63.4 million. As of April 1, 2012, the conversion rate was equal to the initial conversion price of approximately $5.48 per share and the if-converted value of the Notes was $586.1 million.

H. Deferred Revenue and Customer Advances

Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances.

	April 1, 2012		December 31, 2011
	(in thousands)
Customer advances	$	65,789	$	70,001
Maintenance, training and extended warranty		37,408		33,953
Undelivered elements		7,211		7,939
Acceptance		99		318
Total deferred revenue and customer advances	$	110,507	$	112,211

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I. Product Warranty

Teradyne generally provides a one-year warranty on its products commencing upon installation or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities.

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	8,153		$	9,886
Accruals for warranties issued during the period		3,776			3,577
Adjustments related to pre-existing warranties		(260	)		(956	)
Settlements made during the period		(2,947	)		(3,005	)
Balance at end of period	$	8,722		$	9,502

When Teradyne receives revenue for extended warranties beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in deferred revenue and customer advances and long-term other accrued liabilities.

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	12,742		$	8,972
Deferral of new extended warranty revenue		2,347			1,939
Recognition of extended warranty deferred revenue		(2,162	)		(1,041	)
Balance at end of period	$	12,927		$	9,870

J. Stock-Based Compensation

Restricted stock unit awards granted to employees vest in equal installments over four years. A portion of the restricted stock unit awards granted to executive officers is subject to service-based vesting and a portion of the awards is subject to performance-based vesting. The percentage level of performance satisfied for performance-based grants is assessed on or near the anniversary of the grant date and, in turn, that percentage level determines the number of performance-based restricted stock units available for vesting over the vesting period; portions of the performance-based grants not available for vesting are forfeited. Service-based stock options vest in equal installments over four years, and have a term of seven years from the date of grant.

During the three months ended April 1, 2012, Teradyne granted 1.5 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.88 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.85.

During the three months ended April 3, 2011, Teradyne granted 1.5 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.23 and 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.74.

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The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Expected life (years)		3.50			4.00
Interest rate		0.4	%		1.5	%
Volatility-historical		56.0	%		52.1	%
Dividend yield		0.0	%		0.0	%

Teradyne determined the stock options’ expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant. Volatility was determined using historical volatility for a period equal to the expected life. The risk-free rate was determined using the U.S. Treasury yield curve in effect at the time of grant.

The weighted-average fair value of employee stock purchase rights granted in the first three months of 2012 and 2011 was $4.09 and $3.66, respectively. The fair value of the employees’ purchase rights was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Expected life (years)		0.5			0.5
Interest rate		0.06	%		0.14	%
Volatility-historical		52.6	%		41.0	%
Dividend yield		0.0	%		0.0	%

K. Intangible Assets

Amortizable intangible assets consist of the following and are included in intangible assets on the balance sheet:

	April 1, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,155	$	104,378	$	253,777		6.3 years
Customer relationships and service and software maintenance contracts		144,971		49,788		95,183		8.0 years
Trade names and trademarks		33,840		8,254		25,586		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,966	$	163,420	$	374,546		7.0 years

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	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,155	$	91,391	$	266,764		6.3 years
Customer relationships and service and software maintenance contracts		144,971		45,230		99,741		8.0 years
Trade names and trademarks		33,840		7,370		26,470		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,966	$	144,991	$	392,975		7.0 years

Aggregate intangible asset amortization expense was $18.4 million and $7.3 million, respectively, for the three months ended April 1, 2012 and April 3, 2011. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:

Year	Amortization Expense
	(in thousands)
2012 (remainder)	$	55,079
2013		72,459
2014		69,374
2015		52,351
2016		52,351

L. Net Income per Common Share

The following table sets forth the computation of basic and diluted net income per common share:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands, except per share amounts)
Income from continuing operations	$	33,564	$	69,938
Income from discontinued operations		—		1,703
Gain on disposal of discontinued operations		—		25,203
Net income for basic and diluted net income per share	$	33,564	$	96,844
Weighted average common shares-basic		185,838		184,720
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes (1)		23,000		23,360
Convertible notes hedge warrant shares (2)		18,319		18,822
Restricted stock units		1,647		3,512
Stock options		2,325		1,605
Employee stock purchase rights		24		61
Dilutive potential common shares		45,315		47,360
Weighted average common shares-diluted		231,153		232,080

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	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands, except per share amounts)
Net income per common share-basic:
Continuing operations	$	0.18	$	0.38
Discontinued operations		—		0.14
	$	0.18	$	0.52
Net income per common share-diluted:
Continuing operations	$	0.15	$	0.30
Discontinued operations		—		0.12
	$	0.15	$	0.42

(1) Incremental shares from assumed conversion of the convertible notes for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

(2) Convertible notes hedge warrant shares for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period.

The computation of diluted net income per common share for the three months ended April 1, 2012 excludes the effect of the potential exercise of stock options to purchase approximately 0.3 million shares and restricted stock units of 1.0 million because the effect would have been anti-dilutive.

The computation of diluted net income per common share for the three months ended April 3, 2011 excludes the effect of the potential exercise of stock options to purchase approximately 1.6 million shares because the effect would have been anti-dilutive.

With respect to the Teradyne’s convertible debt, Teradyne intends to settle its conversion spread (i.e., the intrinsic value of the embedded option feature contained in the convertible debt) in shares. Teradyne accounts for its conversion spread using the treasury stock method.

M. Restructuring and Other, Net

Other

During the three months ended April 1, 2012, Teradyne recorded a $1.9 million fair value adjustment to decrease the LitePoint acquisition contingent consideration. As of April 1, 2012, the estimated undiscounted range of outcomes for the contingent consideration is $54.0 million to $66.0 million. The decrease in the range from December 31, 2011 is due to the $5.8 million contingent consideration payment during the three months ended April 1, 2012 and the $1.9 million fair value decrease.

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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 remaining accrual for lease payments on vacated facilities of $1.7 million 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 $0.8 million against the lease accruals over the next twelve months. Teradyne’s future lease commitments are net of expected sublease income of $0.4 million as of April 1, 2012. The table below represents activity related to these actions.

	Severance and Benefits			Facility Exit Costs			Total
	(in thousands)
Pre-2011 Activities
Balance at December 31, 2010	$	712		$	3,263		$	3,975
Provision		117			—			117
Change in estimate		155			(485	)		(330	)
Cash payments		(984	)		(916	)		(1,900	)
Balance at December 31, 2011		—			1,862			1,862
Cash payments		—			(189	)		(189	)
Balance at April 1, 2012	$	—		$	1,673		$	1,673
2011 Activities
Q1 2011 Activity:
Provision	$	572		$	—		$	572
Cash payments		(476	)		—			(476	)
Balance at December 31, 2011		96			—			96
Cash payments		(96	)		—			(96	)
Balance at April 1, 2012	$	—		$	—		$	—
Q2 2011 Activity:
Provision	$	344		$	—		$	344
Cash payments		(115	)		—			(115	)
Balance at December 31, 2011		229			—			229
Cash payments		(229	)		—			(229	)
Balance at April 1, 2012	$	—		$	—		$	—
Balance at April 1, 2012	$	—		$	1,673		$	1,673

During the three months ended April 3, 2011, Teradyne recorded the following restructuring charges:

Q1 2011 Actions:

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

Q2 2010 Actions:

• $0.2 million related to a change in the estimated severance benefits related to headcount reductions in Semiconductor Test.

Q4 2010 Actions:

• $0.1 million of severance charges related to headcount reductions in Semiconductor Test.

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Pre-2011 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, and the North Reading, MA facility in Semiconductor Test and System Test Group.

N. Retirement Plans

Defined Benefit Pension Plans

Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (“IRC”), as well as unfunded foreign plans.

Components of net periodic pension cost for all plans were as follows:

	For the Three Months Ended
	April 1,  2012			April 3,  2011
	(in thousands)
Service cost	$	722		$	769
Interest cost		4,083			4,327
Expected return on plan assets		(4,087	)		(3,913	)
Amortization of unrecognized:
Prior service cost		58			155
Total net periodic pension cost	$	776		$	1,338

In the three months ended April 1, 2012, Teradyne contributed $0.7 million, primarily to its foreign pension plans.

Post-Retirement Benefit Plans

In addition to receiving pension benefits, U.S. Teradyne employees who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes death, and medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees.

Components of net periodic post-retirement cost were as follows:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Service cost	$	19		$	16
Interest cost		110			136
Amortization of unrecognized:
Prior service benefit		(150	)		(149	)
Total net periodic post-retirement (benefit) cost	$	(21	)	$	3

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O. Commitments and Contingencies

Purchase Commitments

As of April 1, 2012, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments aggregate to approximately $273.2 million, of which $272.8 million is for less than one year.

Legal Claims

Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on Teradyne’s results of operations, financial condition or cash flows.

P. Segment Information

Teradyne has three operating segments (Semiconductor Test, Systems Test Group and Wireless Test), which are its reportable segments. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The Systems Test Group segment includes operations related to design, manufacturing and marketing of products and services for military/aerospace instrumentation test, storage test and circuit-board test. The Wireless Test segment includes operations related to design, manufacturing and marketing of wireless test products and services. Each operating segment has a segment manager who is directly accountable to and maintains regular contact with Teradyne’s chief operating decision maker (Teradyne’s chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment.

Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income before income taxes. The accounting policies of the business segments are the same as those described in Note B “Accounting Policies” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2011. Segment information is as follows:

	Semiconductor Test		Systems Test Group		Wireless Test			Corporate And Eliminations			Consolidated
	(in thousands)
Three months ended April 1, 2012:
Net revenues	$	267,588	$	97,752	$	31,328		$	—		$	396,668
Income (loss) from continuing operations before income taxes (1)(2)		34,998		21,978		(12,312	)		(3,420	)		41,244
Three months ended April 3, 2011:
Net revenues	$	319,250	$	57,911	$	—		$	—		$	377,161
Income (loss) from continuing operations before income taxes (1)(2)		76,926		5,491		—			(6,993	)		75,424

(1) Interest income and interest expense and other are included in Corporate and Eliminations.

(2) Included in the income (loss) from continuing operations before income taxes for each of the segments are charges for the three months ended April 1, 2012 and April 3, 2011 that include restructuring and other, net, and provision for excess and obsolete inventory, as follows:

Included in the Semiconductor Test segment are charges for the following:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	212	$	4,442
Restructuring and other, net		—		891
Total	$	212	$	5,333

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Included in the Systems Test Group segment are charges for the following:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	889	$	185
Restructuring and other, net		—		(246	)
Total	$	889	$	(61	)

Included in the Wireless Test segment are charges and credits in the following accounts:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—inventory step-up	$	4,871	$	—
Cost of revenues—provision for excess and obsolete inventory		473		—
Total	$	5,344	$	—

Included in the Corporate and Eliminations segment are charges for the following:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Restructuring and other, net	$	(1,825	)	$	(232	)
Total	$	(1,825	)	$	(232	)

Q. Stock Repurchase Program

In November 2010, the Board authorized a stock repurchase program for up to $200 million. In the three months ended April 1, 2012 and April 3, 2011, Teradyne did not repurchase any shares. Cumulatively, as of April 1, 2012, Teradyne has repurchased 2.6 million shares of common stock for $31.2 million at an average price of $11.84.

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

Statements in this Quarterly Report on Form 10-Q which are not historical facts, so called “forward looking statements,” are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that all forward looking statements involve risks and uncertainties, including those detailed in Teradyne’s filings with the Securities and Exchange Commission. See also Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011. Readers are cautioned not to place undue reliance on these forward-looking statements which reflect management’s analysis only as of the date hereof. We assume no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting forward-looking statements, except as may be required by law.

Overview

We are a leading global supplier of automatic test equipment. We design, develop, manufacture, and sell automatic test systems and solutions used to test complex electronics in the consumer electronics, automotive, computing, telecommunications, wireless, and aerospace and defense industries. Our automatic test equipment products and services include:

• semiconductor test (“Semiconductor Test”) systems,

• military/aerospace (“Mil/Aero”) test instrumentation and systems, storage test (“Storage Test”) systems, and circuit-board test and inspection (“Commercial Board Test”) systems (collectively these products represent “Systems Test Group”), and

• wireless test (“Wireless Test”) systems.

We have a broad customer base which includes integrated device manufacturers (“IDMs”), outsourced semiconductor assembly and test providers (“OSATs”), wafer foundries, fabless companies that design, but contract with others for the manufacture of integrated circuits (“ICs”), developers of wireless devices and consumer electronics, manufacturers of circuit boards, automotive suppliers, wireless product manufacturers, storage device manufacturers, aerospace and military contractors as well as the United States Department of Defense.

The sales of our products and services are dependent, to a large degree, on customers who are subject to cyclical trends in the demand for their products. These cyclical periods have had, and will continue to have, a significant effect on our business since our customers often delay or accelerate purchases in reaction to changes in their businesses and to demand fluctuations in the semiconductor industry. Historically, these demand fluctuations have resulted in significant variations in our results of operations. This was particularly relevant beginning in the fourth quarter of fiscal year 2008 where we saw a significant decrease in revenue in our Semiconductor Test business which was impacted by the deteriorating global economy, which negatively impacted the entire semiconductor industry. The sharp swings in the semiconductor industry in recent years have generally affected the semiconductor test equipment and services industry more significantly than the overall capital equipment sector.

We believe our acquisitions of Nextest, Eagle Test and LitePoint, and our entry into the high speed memory and storage test markets have enhanced our opportunities for growth. We will continue to invest in our businesses to expand further our addressable markets while tightly managing our costs.

We regularly face price competition in each of our businesses. We intend to respond to competitive pricing moves as necessary, which may adversely impact our gross margins. Longer term, we will continue to invest in engineering to lower the cost of test which should help mitigate the impacts from aggressive pricing actions.

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Critical Accounting Policies and Estimates

We have identified the policies which are critical to understanding our business and our results of operations. There have been no significant changes during the three months ended April 1, 2012 to the items disclosed as our critical accounting policies and estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

Effective January 1, 2012, we changed the method of recognizing actuarial gains and losses for our defined benefit pension plans and postretirement benefit plan and calculating the expected return on plan assets for our defined benefit pension plans. Historically, we recognized net actuarial gains and losses in accumulated other comprehensive income within shareholders’ equity on our consolidated balance sheets on an annual basis and amortized them into operating results over the average remaining years of service of the plan participants, to the extent such gains and losses were outside of a corridor. In addition, we, historically, calculated the expected return on plan assets using a calculated market-related value of plan assets. We have elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. We have also elected to calculate the expected return on plan assets using the fair value of the plan assets.

While the previous method of recognizing pension and other postretirement benefit expense was considered acceptable, we believe that this new method is preferable as it eliminates the delay in recognizing gains and losses in our operating results and it will improve the transparency by faster recognition of the effects of economic and interest rate trends on plan obligations and investments. These actuarial gains and losses are generally measured annually as of December 31 and, accordingly, will be recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. In accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections, all prior periods presented in this Quarterly Report on Form 10-Q have been adjusted to apply the new accounting method retrospectively. This accounting change did not impact the financial position of the reportable segments.

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SELECTED RELATIONSHIPS WITHIN THE CONDENSED CONSOLIDATED

STATEMENTS OF OPERATIONS

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Percentage of total net revenues:
Net revenues:
Products		83	%		84	%
Services		17			16
Total net revenues		100			100
Cost of revenues:
Cost of products		44			41
Cost of services		8			8
Total cost of revenues		52			49
Gross profit		48			51
Operating expenses:
Engineering and development		15			12
Selling and administrative		17			15
Acquired intangible asset amortization		5			2
Restructuring and other		—			—
Total operating expenses		36			30
Income from operations		12			21
Interest income		—			—
Interest expense and other, net		(2	)		(2	)
Income from continuing operations before income taxes		10			20
Provision for income taxes		2			1
Income from continuing operations		8			19
Income from discontinued operations before income taxes		—			—
Benefit from income taxes		—			—
Income from discontinued operations		—			—
Gain on disposal of discontinued operations		—			7
Net income		8	%		26	%

Results of Operations

First Quarter 2012 Compared to First Quarter 2011

Book to Bill Ratio

Book to bill ratio is calculated as net bookings divided by net sales. Book to bill ratio by reportable segment was as follows:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
Semiconductor Test		1.4		1.1
Systems Test Group		0.5		1.3
Wireless Test		1.3		—
Total Company		1.2		1.2

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Revenue

Net revenues by reportable segments were as follows:

	For the Three Months Ended				Dollar Change
	April 1, 2012		April 3, 2011
	(in millions)
Semiconductor Test	$	267.6	$	319.3	$	(51.7	)
Systems Test Group		97.8		57.9		39.9
Wireless Test		31.3		—		31.3
	$	396.7	$	377.2	$	19.5

The decrease of $51.7 million or 16% in Semiconductor Test revenue was due to a decrease across all System-on-a-Chip and memory product sales revenue. The increase in Systems Test Group revenue of $39.9 million or 69% was primarily due to the increase in sales of Storage Test systems. The acquisition of LitePoint, which is our Wireless Test segment, completed in October of 2011, added $31.3 million of revenue in the three months ended April 1, 2012.

Our revenues by region as a percentage of total net revenue were as follows:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Korea		16	%		11	%
Taiwan		14			14
Thailand		14			3
United States		12			14
China		11			8
Japan		8			8
Philippines		7			13
Europe		6			7
Singapore		6			6
Malaysia		5			15
Rest of World		1			1
		100	%		100	%

Gross Profit

Our gross profit was as follows:

	For the Three Months Ended						Dollar/Point Change
	April 1, 2012			April 3, 2011
	(in millions)
Gross Profit	$	190.9		$	192.9		$	(2.0	)
Percent of Total Revenue		48.1	%		51.1	%		(3.0	)

Gross profit as a percent of revenue decreased by 3.0 percentage points. This decrease was the result of a decrease of 5.5 points related to System-on-a-Chip product mix and higher Storage Test systems sales. This decrease was partially offset by an increase of 1.8 points due to the addition of LitePoint, and an increase of 0.7 points due to lower inventory provisions.

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We assess the carrying value of our inventory on a quarterly basis by estimating future demand and comparing that demand against on-hand and on-order inventory positions. Forecasted revenue information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenue demand. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed during the next four quarters, is written-down to estimated net realizable value.

During the three months ended April 1, 2012, we recorded an inventory provision of $1.6 million included in cost of revenues, due to the downward revisions to previously forecasted demand levels. Of the $1.6 million of total excess and obsolete provisions recorded in the three months ended April 1, 2012, $0.9 million was related to Systems Test Group, and $0.5 million was related to Wireless Test, and $0.2 million was related to Semiconductor Test.

During the three months ended April 3, 2011, we recorded an inventory provision of $4.6 million included in cost of revenues, due to the downward revisions to previously forecasted demand levels. Of the $4.6 million of total excess and obsolete provisions recorded in the three months ended April 3, 2011, $4.4 million was related to Semiconductor Test and $0.2 million was related to Systems Test Group.

During the three months ended April 1, 2012 and April 3, 2011, we scrapped $4.1 million and $0.3 million of inventory, respectively. During the three months ended April 1, 2012 and April 3, 2011, we sold $1.3 million and $3.0 million, respectively, of previously written-down or written-off inventory. As of April 1, 2012, we had inventory related reserves for amounts which had been written-down or written-off totaling $120.7 million. We have no pre-determined timeline to scrap the remaining inventory.

Engineering and Development

Engineering and development expenses were as follows:

	For the Three Months Ended						Dollar Change
	April 1, 2012			April 3, 2011
	(in millions)
Engineering and Development	$	60.1		$	47.1		$	13.0
Percent of Total Revenue		15.2	%		12.5	%

The increase of $13.0 million in engineering and development expenses is due primarily to additional costs of $8.6 million related to LitePoint which was acquired in October 2011 and increased spending on engineering projects.

Selling and Administrative

Selling and administrative expenses were as follows:

	For the Three Months Ended						Dollar Change
	April 1, 2012			April 3, 2011
	(in millions)
Selling and Administrative	$	67.8		$	57.7		$	10.1
Percent of Total Revenue		17.1	%		15.3	%

The increase of $10.1 million in selling and administrative expenses is due primarily to additional costs of $10.7 million related to LitePoint.

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Restructuring and Other, Net

Other

During the three months ended April 1, 2012, we recorded a $1.9 million fair value adjustment to decrease the LitePoint acquisition contingent consideration. As of April 1, 2012, the estimated undiscounted range of outcomes for the contingent consideration is $54.0 million to $66.0 million. The decrease in the range from December 31, 2011 is due to the $5.8 million contingent consideration payment during the three months ended April 1, 2012 and the $1.9 million fair value decrease.

Restructuring

In response to a downturn in the industry in 2008 and 2009, we initiated restructuring activities across all segments to reduce costs, principally through headcount reductions and facility consolidations. The remaining accrual for lease payments on vacated facilities of $1.7 million 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. We expect to pay approximately $0.8 million against the lease accruals over the next twelve months. Our future lease commitments are net of expected sublease income of $0.4 million as of April 1, 2012. The table below represents activity related to these actions.

	Severance and Benefits			Facility Exit Costs			Total
	(in thousands)
Pre-2011 Activities
Balance at December 31, 2010	$	712		$	3,263		$	3,975
Provision		117			—			117
Change in estimate		155			(485	)		(330	)
Cash payments		(984	)		(916	)		(1,900	)
Balance at December 31, 2011		—			1,862			1,862
Cash payments		—			(189	)		(189	)
Balance at April 1, 2012	$	—		$	1,673		$	1,673
2011 Activities
Q1 2011 Activity:
Provision	$	572		$	—		$	572
Cash payments		(476	)		—			(476	)
Balance at December 31, 2011		96			—			96
Cash payments		(96	)		—			(96	)
Balance at April 1, 2012	$	—		$	—		$	—
Q2 2011 Activity:
Provision	$	344		$	—		$	344
Cash payments		(115	)		—			(115	)
Balance at December 31, 2011		229			—			229
Cash payments		(229	)		—			(229	)
Balance at April 1, 2012	$	—		$	—		$	—
Balance at April 1, 2012	$	—		$	1,673		$	1,673

During the three months ended April 3, 2011, we recorded the following restructuring charges:

Q1 2011 Actions:

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

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Q2 2010 Actions:

• $0.2 million related to a change in the estimated severance benefits related to headcount reductions in Semiconductor Test.

Q4 2010 Actions:

• $0.1 million of severance charges related to headcount reductions in Semiconductor Test.

Pre-2011 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, and the North Reading, MA facility in Semiconductor Test and System Test Group.

Interest and Other

Interest income decreased by $0.4 million, from the first quarter of 2011 to 2012, due to a decrease in marketable securities due to the LitePoint acquisition.

Income Taxes

For the three months ended April 1, 2012, we recorded a tax provision of $7.7 million from continuing operations, which consisted of foreign taxes and U.S. deferred tax provision. For the three months ended April 1, 2011, we recorded a tax provision of $5.5 million which consisted primarily of foreign taxes.

On a quarterly basis, we evaluate the realizability of our deferred tax assets by jurisdiction and assess the need for a valuation allowance. At April 1, 2012, we believe that we will ultimately realize the deferred tax assets recorded on our condensed consolidated balance sheet. However, should we believe that it is more likely than not that our deferred tax assets would not be realized, our tax provision would increase in the period in which we determined that the realizability was not likely. We consider the probability of future taxable income and our historical profitability, among other factors, in assessing the realizability of our deferred tax assets.

Contractual Obligations

The following table reflects our contractual obligations as of April 1, 2012:

	Payments Due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years		Other
	(in thousands)
Long-Term Debt Obligations (1)	$	194,861	$	2,431	$	192,430	$	—	$	—	$	—
Interest on Debt		17,232		8,633		8,599		—		—		—
Contingent Acquisition Payments		61,210		61,210		—		—		—		—
Operating Lease Obligations		52,875		13,944		18,548		11,449		8,934		—
Purchase Obligations		273,212		272,784		428		—		—		—
Retirement Plan Contributions		54,176		5,083		10,531		11,141		27,421		—
Other Long-Term Liabilities Reflected on the Balance Sheet under GAAP (2)		73,579		—		24,475		—		—		49,104
Total	$	727,145	$	364,085	$	255,011	$	22,590	$	36,355	$	49,104

(1) Long-Term Debt Obligations include current maturities.

(2) Included in Other Long-Term Liabilities are liabilities for customer advances, extended warranty, uncertain tax positions and other obligations. For certain long-term obligations, we are unable to provide a reasonably reliable estimate of the timing of future payments relating to these obligations and therefore we included these amounts in the column marked “Other”.

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Liquidity and Capital Resources

Our cash, cash equivalents and marketable securities balance decreased by $12.5 million in the three months ended April 1, 2012, to $742.1 million. Cash activity for the three months ended April 1, 2012 and April 3, 2011 was as follows:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in millions)
Cash provided by operating activities:
Income from continuing operations, adjusted for non-cash items	$	90.3		$	106.0
Change in operating assets and liabilities, net of businesses sold		(79.1	)		(82.2	)
Cash used for discontinued operations		—			(4.2	)
Total cash provided by operating activities		11.2			19.6
Cash used for investing activities from continuing operations		(54.4	)		(45.0	)
Cash provided by investing activities from discontinued operations		—			39.0
Total cash used for investing activities		(54.4	)		(6.0	)
Total cash provided by financing activities		2.9			8.9
(Decrease) Increase in cash and cash equivalents	$	(40.3	)	$	22.5

In the three months ended April 1, 2012, changes in operating assets and liabilities used cash of $79.1 million. This was due to a $66.7 million increase in operating assets and a $12.4 million decrease in operating liabilities.

The increase in operating assets from December 31, 2011 was due to a $92.2 million increase in accounts receivable due to higher sales volume, partially offset by a $23.6 million decrease in inventories and a $1.9 million decrease in prepayments. The decrease in operating liabilities from December 31, 2011 was due to a $46.1 million decrease in accrued employee compensation due primarily to variable compensation payments, a $4.2 million decrease in customer advance payments due to shipments of systems prepaid by customers, $1.1 million of retirement plans contributions, partially offset by a $36.5 million increase in accounts payable due to increased sales volume, and a $2.5 million increase in deferred revenue.

Investing activities during the three months ended April 1, 2012 used cash of $54.4 million, due to $80.1 million used for purchases of marketable securities and $27.1 million used for capital expenditures, partially offset by $52.8 million of proceeds from sales and maturities of marketable securities.

Financing activities during the three months ended April 1, 2012 provided cash of $2.9 million, $9.9 million was from the issuance of common stock under stock option and stock purchase plans, partially offset by $5.8 million of cash used for payments related to LitePoint acquisition contingent consideration and $1.2 million of cash used for payments on long-term debt related to the Japan loan.

In the three months ended April 3, 2011, changes in operating assets and liabilities, net of businesses sold, used cash of $82.2 million. This was due to a $30.5 million increase in operating assets and a $51.7 million decrease in operating liabilities.

The increase in operating assets from December 31, 2010 was due to a $17.5 million increase in accounts receivable and a $10.7 million increase in inventories due to higher sales volume, and a $2.3 million increase in other current assets. The decrease in operating liabilities from December 31, 2010 was due to a $56.8 million

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decrease in accrued employee compensation due primarily to variable compensation payments, a $27.1 million decrease in customer advance payments due to shipments of systems prepaid by customers in 2010 and $1.2 million of retirement plans contributions, partially offset by a $28.0 million increase in accounts payable due to increased sales volume, a $2.9 million increase in other accrued liabilities and a $2.5 million increase in deferred revenue.

Investing activities during the three months ended April 3, 2011 used cash of $45.0 million, due to $211.3 million used for purchases of marketable securities and $22.1 million used for capital expenditures, partially offset by proceeds from sales and maturities of marketable securities that provided cash of $188.4 million.

Investing activities of discontinued operations during the three months ended April 3, 2011, provided cash of $39.0 million. Included in this balance is the net proceeds received for the sale of our Diagnostic Solutions business unit to SPX Corporation on March 21, 2011.

Financing activities during the three months ended April 3, 2011 provided cash of $8.9 million, $10.1 million was from the issuance of common stock under stock option and stock purchase plans which was partially offset by $1.2 million of cash used for a payment on a long-term debt related to the Japan loan.

We believe our cash, cash equivalents and marketable securities balance will be sufficient to meet working capital and expenditure needs for at least the next twelve months. We do not have significant cash outside the U.S. that if repatriated would incur additional taxes. In addition, the amount of cash, cash equivalents and marketable securities in the U.S. and our operations in the U.S. provide sufficient liquidity to fund our business activities in the U.S. Inflation has not had a significant long-term impact on earnings.

Equity Compensation Plans

As discussed in Note N “Stock Based Compensation” in our 2011 Form 10-K, we have a 1996 Employee Stock Purchase Plan and a 2006 Equity and Cash Compensation Incentive Plan (the “2006 Equity Plan”).

The purpose of the 1996 Employee Stock Purchase Plan is to encourage stock ownership by all eligible employees of Teradyne. The purpose of the 2006 Equity Plan is to provide equity ownership and compensation opportunities in Teradyne to our employees, officers, directors, consultants and/or advisors. Both plans were approved by our shareholders.

Recently Issued Accounting Pronouncements

In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This ASU is intended to enhance a financial statement user’s ability to understand the effects of netting arrangements on an entity’s financial statements, including financial instruments and derivative instruments that are either offset or subject to an enforceable master netting or similar arrangement. The scope of this ASU includes derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. This ASU includes enhanced disclosure requirements, including both gross and net information about instruments and transactions eligible for offset or subject to an agreement similar to a master netting arrangement. The provisions of this ASU will be applied retrospectively for interim and annual periods beginning on or after January 1, 2013. We are currently evaluating the impact of this new ASU.

Item 3: Quantitative and Qualitative Disclosures about Market Risk

For “Quantitative and Qualitative Disclosures about Market Risk” affecting Teradyne, see Item 7a. “Quantitative and Qualitative Disclosures about Market Risks,” in our Annual Report on Form 10-K filed with the SEC on February 29, 2012. There were no material changes in our exposure to market risk from those set forth in our Annual Report for the fiscal year ended December 31, 2011.

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Item 4: Controls and Procedures

As of the end of the period covered by this report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) promulgated under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that material information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including ensuring that such material information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

During the period covered by this report, there have been no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

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PART II. OTHER INFORMATION

Item 1: Legal Proceedings

We are subject to various legal proceedings and claims which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our results of operations, financial condition or cash flows.

Item 1A: Risk Factors

You should carefully consider the factors discussed in Part I, “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011, which could materially affect our business, financial condition or future results. The risk factors described in our Annual Report on Form 10-K remain applicable to our business.

The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

In November 2010, the Board authorized a stock repurchase program for up to $200 million. Cumulatively, as of April 1, 2012, we have repurchased 2.6 million shares of common stock for $31.2 million at an average price of $11.84.

The following table includes information with respect to repurchases we made of our common stock during the three months ended April 1, 2012 (in thousands except per share price):

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
January 1, 2012 – January 29, 2012		—	$	—		—	$	168,825
January 30, 2012 – February 26, 2012		—	$	—		—	$	168,825
February 27, 2012 – April 1, 2012		—	$	—		—	$	168,825
		—	$	—		—	$	168,825

We satisfy the minimum withholding tax obligation due upon the vesting and the conversion of restricted stock units into shares of our common stock, by automatically withholding from the shares being issued a number of shares with an aggregate fair market value on the date of such vesting and conversion that would satisfy the withholding amount due.

The following table includes information with respect to our common stock shares withheld to satisfy withholding tax obligations during the three months ended April 1, 2012 (in thousands except per share price):

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
January 1, 2012 – January 29, 2012		401	$	16.38		—		—
January 30, 2012 – February 26, 2012		248	$	16.52		—		—
February 27, 2012 – April 1, 2012		9	$	16.21		—		—
		658	$	16.43		—		—

Item 4: Mine Safety Disclosures

Not Applicable

37

Item 6: Exhibits

Exhibit Number	Description
18.1	Letter on Change in Accounting Principle
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 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 pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

38

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

TERADYNE, INC.

Registrant

/S/    GREGORY R. BEECHER

Gregory R. Beecher

Vice President,

Chief Financial Officer and Treasurer

(Duly Authorized Officer
and Principal Financial Officer)

May 11, 2012

39

EX-18.1

Exhibit 18.1

May 11, 2012

Board of Directors

Teradyne, Inc.

600 Riverpark Drive

North Reading, MA 01864

Dear Directors:

We are providing this letter to you for inclusion as an exhibit to your Form 10-Q filing pursuant to Item 601 of Regulation S-K.

We have been provided a copy of the Company’s Quarterly Report on Form 10-Q for the period ended April 1, 2012. Note C therein describes a change in accounting principle for the Company’s defined benefit pension plans and postretirement benefit plan. It should be understood that the preferability of one acceptable method of accounting over another for defined benefit pension and post retirement benefit plans has not been addressed in any authoritative accounting literature, and in expressing our concurrence below we have relied on management’s determination that this change in accounting principle is preferable. Based on our reading of management’s stated reasons and justification for this change in accounting principle in the Form 10-Q, and our discussions with management as to their judgment about the relevant business planning factors relating to the change, we concur with management that such change represents, in the Company’s circumstances, the adoption of a preferable accounting principle in conformity with Accounting Standards Codification 250, Accounting Changes and Error Corrections.

We have not audited any financial statements of the Company as of any date or for any period subsequent to December 31, 2011. Accordingly, our comments are subject to change upon completion of an audit of the financial statements covering the period of the accounting change.

Very truly yours,

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP, 125 High Street, Boston, MA 02110

T: (617) 530 5000, F: (617) 530 5001, www.pwc.com/us

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Michael A. Bradley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Teradyne, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2012

By:	/S/    MICHAEL A. BRADLEY
	Michael A. Bradley Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Gregory R. Beecher, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Teradyne, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2012

By:	/S/    GREGORY R. BEECHER
	Gregory R. Beecher Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Teradyne, Inc. (the “Company”) on Form 10-Q for the period ending April 1, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael A. Bradley, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C (S) 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/S/    MICHAEL A. BRADLEY

Michael A. Bradley

Chief Executive Officer

May 11, 2012

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Teradyne, Inc. (the “Company”) on Form 10-Q for the period ending April 1, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gregory R. Beecher, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C (S) 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/S/    GREGORY R. BEECHER

Gregory R. Beecher

Chief Financial Officer and Treasurer

May 11, 2012

XML

Change In Accounting Principle (Schedule Of Condensed Consolidated Balance Sheets) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Change in Accounting Principle [Line Items]
Total assets	$ 2,238,148	$ 2,188,639
Total liabilities	689,455	683,579
Common stock	23,302	22,948
Additional paid-in capital	1,302,660	1,293,130
Accumulated other comprehensive (loss) income	4,933	4,746
Retained earnings	217,798	184,236
Total shareholders' equity	1,548,693	1,505,060
Total liabilities and shareholders' equity	2,238,148	2,188,639
Originally Reported [Member]
Change in Accounting Principle [Line Items]
Total assets		2,188,639
Total liabilities		683,579
Common stock		22,948
Additional paid-in capital		1,293,130
Accumulated other comprehensive (loss) income		(129,875)
Retained earnings		318,857
Total shareholders' equity		1,505,060
Total liabilities and shareholders' equity		2,188,639
Effect Of Accounting Change [Member]
Change in Accounting Principle [Line Items]
Accumulated other comprehensive (loss) income		134,621
Retained earnings		$ (134,621)

XML

Debt (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended				0 Months Ended	1 Months Ended			3 Months Ended
	Mar. 31, 2009 Y	Apr. 01, 2012 D	Dec. 31, 2011	Apr. 01, 2012 Current Debt [Member]	Apr. 01, 2012 Long-Term Debt [Member]	Oct. 02, 2011 4.50% Convertible Senior Notes [Member]	Apr. 30, 2009 4.50% Convertible Senior Notes [Member]	Mar. 31, 2009 4.50% Convertible Senior Notes [Member]	Apr. 01, 2012 Convertible Senior Notes [Member]	Apr. 03, 2011 Convertible Notes Hedge Warrant [Member]	Apr. 01, 2012 Convertible Notes Hedge Warrant [Member]	Mar. 31, 2009 Convertible Notes Hedge Warrant [Member]
Debt Instrument [Line Items]
Borrowings from local bank	$ 10,000,000
Term of loan, years	5
Debt instrument, interest rate, stated percentage	0.81%						4.50%
Loan collateralized by real estate mortgage	6,000,000
Unsecured loan	4,000,000
Semiannual principal payments of loan		1,000,000
Outstanding loan principal amount				2,400,000	2,400,000
Aggregate principal amount		190,000,000	190,000,000				190,000,000
Senior notes maturity date							March 15, 2014
Additional aggregate principal amount						1,000
Initial conversion rate in number of shares						182.65
Initial conversion rate		The Notes may be converted, under certain circumstances and during certain periods, at an initial conversion rate of approximately 182.65 shares of Teradyne's common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $5.48, a 25% conversion premium based on the last reported sale price of $4.38 per share of Teradyne's common stock on March 31, 2009.
Initial debt conversion price		$ 5.48						$ 5.48			$ 7.67	$ 7.67
Last reported sale price per share of debt								$ 4.38
Debt conversion premium percentage								25.00%
Conversion of common stock for trading days, number of days		20
Consecutive trading days		30
Percent of increase in conversion price		130.00%
Antidilution adjustments, shares		34,703,196								34,700,000
Convertible note hedges		64,600,000
Strike price per share of warrant	$ 7.67
Percentage of warrant price in excess of closing price of common stock	75.00%
Proceeds from warrants	43,000,000
Warrants conversion premium percentage	75.00%
Unamortized discount		30,627,000	33,902,000						30,600,000
Amortization period of unamortized discount, years		2.0
Carrying amount of equity component		63,400,000
If-converted value of notes		$ 586,100,000

XML

Financial Instruments And Derivatives (Schedule Of Changes In Fair Value Of Level 3 Contingent Consideration) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012
Financial Instruments And Derivatives [Abstract]
Balance at December 31, 2011	$ 68,892
Fair value adjustment	(1,858)
Payment	(5,824)
Balance at April 1, 2012	$ 61,210

XML

Stock Repurchase Program (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended
	Nov. 30, 2010	Apr. 01, 2012
Stock Repurchase Program [Abstract]
Stock repurchase program, authorized amount	$ 200
Repurchase of stock, shares		2.6
Repurchase of stock, value		$ 31.2
Common stock average price		$ 11.84

XML

Debt (Components Of Convertible Senior Notes) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011	Dec. 31, 2011
Debt [Abstract]
Debt principal	$ 190,000		$ 190,000
Unamortized debt discount	30,627		33,902
Net carrying amount of the convertible debt	159,373		156,098
Contractual interest expense	2,161	2,209
Amortization of the discount component and debt issue fees	3,479	3,061
Total interest expense on the convertible debt	$ 5,640	$ 5,270

XML

Financial Instruments And Derivatives (Schedule Of Reported Financial Assets And Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	$ 570,823	$ 593,402
Contingent consideration	61,210	68,892
Liabilities	61,210	69,206
Cash And Cash Equivalents [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	361,942	412,493
Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	87,223	96,502
Long-Term Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	121,512	84,407
Prepayments And Other Current Assets [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	146
Other Accrued Liabilities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Liabilities		314
Level 1 [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	383,593	419,020
Contingent consideration
Liabilities
Level 1 [Member] | Cash And Cash Equivalents [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	350,544	396,329
Level 1 [Member] | Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	4,011	9,044
Level 1 [Member] | Long-Term Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	29,038	13,647
Level 1 [Member] | Prepayments And Other Current Assets [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets
Level 1 [Member] | Other Accrued Liabilities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Liabilities
Level 2 [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	187,230	174,382
Contingent consideration
Liabilities		314
Level 2 [Member] | Cash And Cash Equivalents [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	11,398	16,164
Level 2 [Member] | Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	83,212	87,458
Level 2 [Member] | Long-Term Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	92,474	70,760
Level 2 [Member] | Prepayments And Other Current Assets [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets	146
Level 2 [Member] | Other Accrued Liabilities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Liabilities		314
Level 3 [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets
Contingent consideration	61,210	68,892
Liabilities	61,210	68,892
Level 3 [Member] | Cash And Cash Equivalents [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets
Level 3 [Member] | Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets
Level 3 [Member] | Long-Term Marketable Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets
Level 3 [Member] | Prepayments And Other Current Assets [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Assets
Level 3 [Member] | Other Accrued Liabilities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Liabilities

XML

Intangible Assets (Tables)

3 Months Ended

Apr. 01, 2012

Intangible Assets [Abstract]

Schedule Of Amortizable Intangible Assets

	April 1, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,155	$	104,378	$	253,777		6.3 years
Customer relationships and service and software maintenance contracts		144,971		49,788		95,183		8.0 years
Trade names and trademarks		33,840		8,254		25,586		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,966	$	163,420	$	374,546		7.0 years

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,155	$	91,391	$	266,764		6.3 years
Customer relationships and service and software maintenance contracts		144,971		45,230		99,741		8.0 years
Trade names and trademarks		33,840		7,370		26,470		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,966	$	144,991	$	392,975		7.0 years

Schedule Of Estimated Intangible Asset Amortization Expense

Year	Amortization Expense (in thousands)
2012 (remainder)	$	55,079
2013		72,459
2014		69,374
2015		52,351
2016		52,351

XML

Product Warranty (Schedule Of Product Warranty) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Product Warranty [Abstract]
Balance at beginning of period	$ 8,153	$ 9,886
Accruals for warranties issued during the period	3,776	3,577
Adjustments related to pre-existing warranties	(260)	(956)
Settlements made during the period	(2,947)	(3,005)
Balance at end of period	$ 8,722	$ 9,502

XML

Accounting Policies (Policy)

3 Months Ended

Apr. 01, 2012

Accounting Policies [Abstract]

Basis Of Presentation

Basis of Presentation

The condensed consolidated interim financial statements include the accounts of Teradyne and its subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of such interim financial statements. Certain prior year's amounts were reclassified to conform to the current year presentation. The December 31, 2011 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne's Annual Report on Form 10-K, filed with the SEC on February 29, 2012 for the year ended December 31, 2011.

XML

Financial Instruments And Derivatives (Schedule Of Available-For-Sale Marketable Securities) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	$ 568,115	$ 591,118
Available-for-sale marketable securities, Unrealized Gain	2,689	2,581
Available-for-sale marketable securities, Unrealized (Loss)	(127)	(297)
Available-for-sale marketable securities, Fair Market Value	570,677	593,402
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	61,704	64,571
Money Market Funds [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	350,544	396,329
Available-for-sale marketable securities, Unrealized Gain
Available-for-sale marketable securities, Unrealized (Loss)
Available-for-sale marketable securities, Fair Market Value	350,544	396,329
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses
U.S. Government Agency Securities [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	91,178	83,070
Available-for-sale marketable securities, Unrealized Gain	163	152
Available-for-sale marketable securities, Unrealized (Loss)	(48)	(25)
Available-for-sale marketable securities, Fair Market Value	91,293	83,197
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	26,014	28,510
Corporate Debt Securities [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	44,602	43,077
Available-for-sale marketable securities, Unrealized Gain	1,514	1,893
Available-for-sale marketable securities, Unrealized (Loss)	(47)	(141)
Available-for-sale marketable securities, Fair Market Value	46,069	44,829
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	13,295	17,033
Commercial Paper [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	33,542	29,932
Available-for-sale marketable securities, Unrealized Gain	6	2
Available-for-sale marketable securities, Unrealized (Loss)	(9)	(10)
Available-for-sale marketable securities, Fair Market Value	33,539	29,924
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	9,482	9,479
Certificates Of Deposit And Time Deposits [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	16,186	16,437
Available-for-sale marketable securities, Unrealized Gain
Available-for-sale marketable securities, Unrealized (Loss)	(3)	(5)
Available-for-sale marketable securities, Fair Market Value	16,183	16,432
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	5,810	5,800
U.S. Treasury Securities [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	23,568	14,141
Available-for-sale marketable securities, Unrealized Gain	50	39
Available-for-sale marketable securities, Unrealized (Loss)	(18)
Available-for-sale marketable securities, Fair Market Value	23,600	14,180
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	6,968
Equity And Debt Mutual Funds [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	8,230	7,876
Available-for-sale marketable securities, Unrealized Gain	939	477
Available-for-sale marketable securities, Unrealized (Loss)	(2)	(116)
Available-for-sale marketable securities, Fair Market Value	9,167	8,237
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	135	3,749
Non-U.S. Government Securities [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	265	256
Available-for-sale marketable securities, Unrealized Gain	17	18
Available-for-sale marketable securities, Unrealized (Loss)
Available-for-sale marketable securities, Fair Market Value	282	274
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses

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Change In Accounting Principle (Schedule Of Condensed Consolidated Statements Of Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Change in Accounting Principle [Line Items]
Net income	$ 33,564	$ 96,844
Less: Income from discontinued operations		1,703
Less: Gain on disposal of discontinued operations		25,203
Income from continuing operations	33,564	69,938
Depreciation	12,288	13,057
Amortization	21,815	10,355
Stock-based compensation	10,766	7,464
Provision for excess and obsolete inventory	1,574	4,627
Other	(454)	618
Accounts receivable	(92,217)	(17,498)
Inventories	23,636	(10,709)
Other assets		(2,266)
Deferred revenue and customer advances	(1,704)	(24,553)
Accounts payable and other accrued expenses	(9,635)	(26,014)
Retirement plan contributions	(1,061)	(1,176)
Net cash provided by continuing operations	11,169	23,843
Net cash used for discontinued operations		(4,225)
Net cash provided by operating activities	11,169	19,618
Net cash used for investing activities	(54,364)	(5,942)
Net cash provided by financing activities	2,855	8,854
(Decrease) Increase in cash and cash equivalents	(40,340)	22,530
Cash and cash equivalents at beginning of period	573,736	397,737
Cash and cash equivalents at end of period	533,396	420,267
Originally Reported [Member]
Change in Accounting Principle [Line Items]
Net income		94,872
Less: Income from discontinued operations		1,545
Less: Gain on disposal of discontinued operations		25,203
Income from continuing operations		68,124
Depreciation		13,057
Amortization		12,442
Stock-based compensation		7,464
Provision for excess and obsolete inventory		4,627
Other		618
Accounts receivable		(17,498)
Inventories		(10,709)
Other assets		(2,539)
Deferred revenue and customer advances		(24,553)
Accounts payable and other accrued expenses		(26,014)
Retirement plan contributions		(1,176)
Net cash provided by continuing operations		23,843
Net cash used for discontinued operations		(4,225)
Net cash provided by operating activities		19,618
Net cash used for investing activities		(5,942)
Net cash provided by financing activities		8,854
(Decrease) Increase in cash and cash equivalents		22,530
Cash and cash equivalents at beginning of period		397,737
Cash and cash equivalents at end of period		420,267
Effect Of Accounting Change [Member]
Change in Accounting Principle [Line Items]
Net income		1,972
Less: Income from discontinued operations		158
Income from continuing operations		1,814
Amortization		(2,087)
Other assets		273
As Adjusted [Member]
Change in Accounting Principle [Line Items]
Net income		96,844
Less: Income from discontinued operations		1,703
Less: Gain on disposal of discontinued operations		25,203
Income from continuing operations		$ 69,938

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Segment Information (Tables)

3 Months Ended

Apr. 01, 2012

Segment Reporting Information [Line Items]

Schedule Of Segment Information

	Semiconductor Test		Systems Test Group		Wireless Test			Corporate And Eliminations			Consolidated
	(in thousands)
Three months ended April 1, 2012:
Net revenues	$	267,588	$	97,752	$	31,328		$	—		$	396,668
Income (loss) from continuing operations before income taxes (1)(2)		34,998		21,978		(12,312	)		(3,420	)		41,244
Three months ended April 3, 2011:
Net revenues	$	319,250	$	57,911	$	—		$	—		$	377,161
Income (loss) from continuing operations before income taxes (1)(2)		76,926		5,491		—			(6,993	)		75,424

(1) Interest income and interest expense and other are included in Corporate and Eliminations.

(2) Included in the income (loss) from continuing operations before income taxes for each of the segments are charges for the three months ended April 1, 2012 and April 3, 2011 that include restructuring and other, net, and provision for excess and obsolete inventory, as follows:

Semiconductor Test [Member]

Segment Reporting Information [Line Items]

Schedule Of Segment Reporting Information By Segment Charges

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	212	$	4,442
Restructuring and other, net		—		891
Total	$	212	$	5,333

Systems Test Group [Member]

Segment Reporting Information [Line Items]

Schedule Of Segment Reporting Information By Segment Charges

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	889	$	185
Restructuring and other, net		—		(246	)
Total	$	889	$	(61	)

Wireless Test [Member]

Segment Reporting Information [Line Items]

Schedule Of Segment Reporting Information By Segment Charges

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—inventory step-up	$	4,871	$	—
Cost of revenues—provision for excess and obsolete inventory		473		—
Total	$	5,344	$	—

Corporate And Eliminations [Member]

Segment Reporting Information [Line Items]

Schedule Of Segment Reporting Information By Segment Charges

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Restructuring and other, net	$	(1,825	)	$	(232	)
Total	$	(1,825	)	$	(232	)

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Financial Instruments And Derivatives (Schedule Of Fair Value Of Derivative Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Derivatives [Line Items]
Foreign exchange contracts derivatives not designated as hedging instruments at fair value, net	$ 146	$ 314
Prepayment And Other Current Assets [Member]
Derivatives [Line Items]
Foreign exchange contracts derivatives not designated as hedging instruments, assets at fair value	146
Other Accrued Liabilities [Member]
Derivatives [Line Items]
Foreign exchange contracts derivatives not designated as hedging instruments, liability at fair value		$ 314

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Commitments And Contingencies (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Apr. 01, 2012
Commitments And Contingencies [Abstract]
Aggregate purchase commitments	$ 273.2
Purchase commitments less than one year	$ 272.8
Purchase commitments period	less than one year

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Intangible Assets (Schedule Of Amortizable Intangible Assets) (Details) (USD $)	3 Months Ended		12 Months Ended
	Apr. 01, 2012 Y	Apr. 03, 2011	Dec. 31, 2011 Y
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 537,966,000		$ 537,966,000
Accumulated Amortization	163,420,000		144,991,000
Net Carrying Amount	374,546,000		392,975,000
Weighted Average Useful Life, years	7.0		7.0
Aggregate intangible asset amortization expense	18,400,000	7,300,000
Developed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	358,155,000		358,155,000
Accumulated Amortization	104,378,000		91,391,000
Net Carrying Amount	253,777,000		266,764,000
Weighted Average Useful Life, years	6.3		6.3
Customer Relationships And Service And Software Maintenance Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	144,971,000		144,971,000
Accumulated Amortization	49,788,000		45,230,000
Net Carrying Amount	95,183,000		99,741,000
Weighted Average Useful Life, years	8.0		8.0
Trade Names And Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,840,000		33,840,000
Accumulated Amortization	8,254,000		7,370,000
Net Carrying Amount	25,586,000		26,470,000
Weighted Average Useful Life, years	9.0		9.0
Customer Backlog [Member ]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,000,000		1,000,000
Accumulated Amortization	1,000,000		1,000,000
Net Carrying Amount
Weighted Average Useful Life, years	0.4		0.4

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Financial Instruments And Derivatives (Schedule Of Quantitative Information Associated With Fair Value Measurement Of Level 3) (Details) (USD $) In Thousands, unless otherwise specified			3 Months Ended
	Apr. 01, 2012	Dec. 31, 2011	Apr. 01, 2012 Discount Rate For Revenue Earn-Out [Member]	Apr. 01, 2012 Discount Rate For Cellular Earn-Out [Member]	Apr. 01, 2012 Maximum [Member] Revenue Earn-Out-Probability Of High Case (Scenario) For Calendar Year 2012 Revenue [Member]	Apr. 01, 2012 Minimum [Member] Revenue Earn-Out-Probability Of Low Case (Scenario) For Calendar Year 2012 Revenue [Member]
Revenue earn-out scenario probability percentage					30.00%	70.00%
Earn-out discount rate			3.50%	3.50%
Contingent consideration, fair value	$ 61,210	$ 68,892

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Accounting Policies

3 Months Ended

Apr. 01, 2012

Accounting Policies [Abstract]

Accounting Policies

B. Accounting Policies

Basis of Presentation

The condensed consolidated interim financial statements include the accounts of Teradyne and its subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of such interim financial statements. Certain prior year's amounts were reclassified to conform to the current year presentation. The December 31, 2011 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne's Annual Report on Form 10-K, filed with the SEC on February 29, 2012 for the year ended December 31, 2011.

Preparation of Financial Statements and Use of Estimates

The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates.

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Intangible Assets (Schedule Of Estimated Intangible Asset Amortization Expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012
Intangible Assets [Abstract]
2012 (remainder)	$ 55,079
2013	72,459
2014	69,374
2015	52,351
2016	$ 52,351

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Discontinued Operations (Details) (USD $)	0 Months Ended	3 Months Ended
	Mar. 21, 2011	Apr. 03, 2011
Discontinued Operations [Abstract]
Net revenues		$ 9,086,000
Income from discontinued operations before income taxes		1,436,000
Gain from disposal of discontinued operations before income taxes		29,781,000
Income tax provision		4,311,000
Income from discontinued operations		26,906,000
Cash received from sale of business	$ 40,200,000

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Debt (Tables)

3 Months Ended

Apr. 01, 2012

Debt [Abstract]

Components Of Convertible Senior Notes

	April 1, 2012		December 31, 2011
	(in thousands)
Debt principal	$	190,000	$	190,000
Unamortized debt discount		30,627		33,902
Net carrying amount of the convertible debt	$	159,373	$	156,098

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Contractual interest expense	$	2,161	$	2,209
Amortization of the discount component and debt issue fees		3,479		3,061
Total interest expense on the convertible debt	$	5,640	$	5,270

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Financial Instruments And Derivatives (Tables)

3 Months Ended

Apr. 01, 2012

Financial Instruments And Derivatives [Abstract]

Schedule Of Fair Value Of Financial Assets And Liabilities Measured On Recurring Basis

	April 1, 2012
	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
Available for sale securities:
Money market funds	$	350,544	$	—	$	—	$	350,544
U.S government agency securities		—		91,293		—		91,293
Corporate debt securities		—		46,069		—		46,069
Commercial paper		—		33,539		—		33,539
U.S Treasury securities		23,600		—		—		23,600
Certificates of deposit and time deposits		—		16,183		—		16,183
Equity and debt mutual funds		9,167		—		—		9,167
Non-U.S. government securities		282		—		—		282
Total		383,593		187,084		—		570,677
Derivatives		—		146		—		146
Total	$	383,593	$	187,230	$	—	$	570,823
Liabilities
Contingent consideration	$	—	$	—	$	61,210	$	61,210
Total	$	—	$	—	$	61,210	$	61,210

	December 31, 2011
	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
Available for sale securities:
Money market funds	$	396,329	$	—	$	—	$	396,329
U.S government agency securities		—		83,197		—		83,197
Corporate debt securities		—		44,829		—		44,829
Commercial paper		—		29,924		—		29,924
Certificates of deposit and time deposits		—		16,432		—		16,432
U.S Treasury securities		14,180		—		—		14,180
Equity and debt mutual funds		8,237		—		—		8,237
Non-U.S. government securities		274		—		—		274
Total	$	419,020	$	174,382	$	—	$	593,402
Liabilities
Derivatives	$	—	$	314	$	—	$	314
Contingent consideration		—		—		68,892		68,892
Total	$	—	$	314	$	68,892	$	69,206

Schedule Of Reported Financial Assets And Liabilities

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	350,544	$	11,398	$	—	$	361,942
Marketable securities		4,011		83,212		—		87,223
Long-term marketable securities		29,038		92,474		—		121,512
Prepayments and other current assets		—		146		—		146
	$	383,593	$	187,230	$	—	$	570,823
Liabilities
Contingent consideration	$	—	$	—	$	61,210	$	61,210
	$	—	$	—	$	61,210	$	61,210

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	396,329	$	16,164	$	—	$	412,493
Marketable securities		9,044		87,458		—		96,502
Long-term marketable securities		13,647		70,760		—		84,407
	$	419,020	$	174,382	$	—	$	593,402
Liabilities
Other accrued liabilities	$	—	$	314	$	—	$	314
Contingent consideration		—		—		68,892		68,892
	$	—	$	314	$	68,892	$	69,206

Schedule Of Quantitative Information Associated With Fair Value Measurement Of Level 3

Liability	Fair Value (Thousands)		Valuation Technique	Unobservable Inputs	Weighted Average
Contingent consideration	$	61,210	Income approach— discounted cash flow	Revenue earn-out—probability of low case (scenario) for calendar year 2012 revenue.		70	%
				Revenue earn-out—probability of high case (scenario) for calendar year 2012 revenue.		30	%
				Discount rate for revenue earn-out		3.5	%
				Discount rate for cellular earn-out		3.5	%

Schedule Of Changes In Fair Value Of Level 3 Contingent Consideration

	Contingent consideration
	(in thousands)
Balance at December 31, 2011	$	68,892
Fair value adjustment		(1,858	)
Payment		(5,824	)
Balance at April 1, 2012	$	61,210

Schedule Of Carrying Amounts And Fair Values Of Financial Instruments

	April 1, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Cash equivalents	$	361,942	$	361,942	$	412,493	$	412,493
Marketable securities		208,735		208,735		180,909		180,909
Convertible debt(1)		159,373		595,175		156,098		485,925
Japan loan		4,861		4,861		6,431		6,431

(1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion feature.

Schedule Of Available-For-Sale Marketable Securities

	April 1, 2012
	Available-for-Sale									Fair Market Value  of Investments with Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
Money market funds	$	350,544	$	—	$	—		$	350,544	$	—
U.S. government agency securities		91,178		163		(48	)		91,293		26,014
Corporate debt securities		44,602		1,514		(47	)		46,069		13,295
Commercial paper		33,542		6		(9	)		33,539		9,482
U.S. Treasury securities		23,568		50		(18	)		23,600		6,968
Certificates of deposit and time deposits		16,186		—		(3	)		16,183		5,810
Equity and debt mutual funds		8,230		939		(2	)		9,167		135
Non-U.S. government securities		265		17		—			282		—
	$	568,115	$	2,689	$	(127	)	$	570,677	$	61,704

	December 31, 2011
	Available-for-Sale									Fair Market Value  of Investments with Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
Money market funds	$	396,329	$	—	$	—		$	396,329	$	—
U.S. government agency securities		83,070		152		(25	)		83,197		28,510
Corporate debt securities		43,077		1,893		(141	)		44,829		17,033
Commercial paper		29,932		2		(10	)		29,924		9,479
Certificates of deposit and time deposits		16,437		—		(5	)		16,432		5,800
U.S. Treasury securities		14,141		39		—			14,180		—
Equity and debt mutual funds		7,876		477		(116	)		8,237		3,749
Non-U.S. government securities		256		18		—			274		—
	$	591,118	$	2,581	$	(297	)	$	593,402	$	64,571

Schedule Of Reported Available-For-Sale Marketable Securities

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value  of Investments with Unrealized Losses
	(in thousands)
Cash and cash equivalents	$	361,942	$	—	$	—		$	361,942	$	—
Marketable securities		87,222		19		(18	)		87,223		28,698
Long-term marketable securities		118,951		2,670		(109	)		121,512		33,006
	$	568,115	$	2,689	$	(127	)	$	570,677	$	61,704

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value  of Investments with Unrealized Losses
	(in thousands)
Cash and cash equivalents	$	412,493	$	—	$	—		$	412,493	$	—
Marketable securities		96,518		24		(40	)		96,502		35,595
Long-term marketable securities		82,107		2,557		(257	)		84,407		28,976
	$	591,118	$	2,581	$	(297	)	$	593,402	$	64,571

Schedule Of Fair Value Of Derivative Instruments

	Balance Sheet Location	April 1, 2012		December 31, 2011
		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Prepayments and other current assets	$	146	$	—
Foreign exchange contracts	Other accrued liabilities		—		314
		$	146	$	314

Schedule Of Effect Of Derivative Instruments In Statement Of Operations Recognized

	Location of Gains Recognized in Statement of Operations	For the Three Months Ended
		April 1, 2012		April 3, 2011
		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Interest expense and other, net	$	2,880	$	827
		$	2,880	$	827

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Deferred Revenue And Customer Advances (Schedule Of Deferred Revenue And Customer Advances) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Deferred Revenue And Customer Advances [Abstract]
Customer advances	$ 65,789	$ 70,001
Maintenance, training and extended warranty	37,408	33,953
Undelivered elements	7,211	7,939
Acceptance	99	318
Total deferred revenue and customer advances	$ 110,507	$ 112,211

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Financial Instruments And Derivatives (Narrative) (Details) (USD $)	3 Months Ended		12 Months Ended
	Apr. 01, 2012	Apr. 03, 2011	Dec. 31, 2011
Financial Instruments And Derivatives [Abstract]
Net gain (loss) from sales of marketable securities	$ 300,000	$ (200,000)
Fair market value of investments with unrealized losses	61,704,000		64,571,000
Fair market value of investments with unrealized losses greater than one year	1,100,000		2,400,000
Fair market value of investments with unrealized losses less than one year	60,600,000		62,200,000
Notional amount of foreign exchange contracts hedging monetary assets and liabilities	$ 71,400,000		$ 85,400,000

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Deferred Revenue And Customer Advances (Tables)

3 Months Ended

Apr. 01, 2012

Deferred Revenue And Customer Advances [Abstract]

Schedule Of Deferred Revenue And Customer Advances

	April 1, 2012		December 31, 2011
	(in thousands)
Customer advances	$	65,789	$	70,001
Maintenance, training and extended warranty		37,408		33,953
Undelivered elements		7,211		7,939
Acceptance		99		318
Total deferred revenue and customer advances	$	110,507	$	112,211

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Product Warranty (Tables)

3 Months Ended

Apr. 01, 2012

Product Warranty [Abstract]

Schedule Of Product Warranty

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	8,153		$	9,886
Accruals for warranties issued during the period		3,776			3,577
Adjustments related to pre-existing warranties		(260	)		(956	)
Settlements made during the period		(2,947	)		(3,005	)
Balance at end of period	$	8,722		$	9,502

Schedule Of Extended Product Warranty

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	12,742		$	8,972
Deferral of new extended warranty revenue		2,347			1,939
Recognition of extended warranty deferred revenue		(2,162	)		(1,041	)
Balance at end of period	$	12,927		$	9,870

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The Company

3 Months Ended

Apr. 01, 2012

The Company [Abstract]

The Company

A. The Company

Teradyne, Inc. ("Teradyne") is a leading global supplier of automatic test equipment. Teradyne's automatic test equipment products and services include:

• semiconductor test ("Semiconductor Test") systems,

• military/aerospace ("Mil/Aero") test instrumentation and systems, storage test ("Storage Test") systems, and circuit-board test and inspection ("Commercial Board Test") systems (collectively these products represent "Systems Test Group"), and

• wireless test ("Wireless Test") systems.

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Stock-Based Compensation (Tables)

3 Months Ended

Apr. 01, 2012

Stock Options [Member]

Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]

Schedule Of Estimated Fair Value Of Stock Options Assumptions

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Expected life (years)		3.50			4.00
Interest rate		0.4	%		1.5	%
Volatility-historical		56.0	%		52.1	%
Dividend yield		0.0	%		0.0	%

Stock Purchase Rights [Member]

Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]

Schedule Of Estimated Fair Value Of Stock Options Assumptions

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Expected life (years)		0.5			0.5
Interest rate		0.06	%		0.14	%
Volatility-historical		52.6	%		41.0	%
Dividend yield		0.0	%		0.0	%

XML

Change In Accounting Principle (Schedule Of Condensed Consolidated Statements Of Operations) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Apr. 01, 2012		Apr. 03, 2011
Change in Accounting Principle [Line Items]
Net revenues	$ 396,668		$ 377,161
Cost of revenues	205,742		184,269
Gross profit	190,926		192,892
Engineering and development	60,135		47,144
Selling and administrative	67,777		57,731
Acquired intangible asset amortization	18,429		7,291
Restructuring and other	(1,825)		413
Total operating expenses	144,516		112,579
Income from operations	46,410		80,313
Interest income	893		1,287
Interest expense and other, net	(6,059)		(6,176)
Income from continuing operations before income taxes	41,244	[1],[2]	75,424	[1],[2]
Provision for income taxes	7,680		5,486
Income from continuing operations	33,564		69,938
Income from discontinued operations before income taxes			1,436
Benefit from income taxes			(267)
Income from discontinued operations			1,703
Gain on disposal of discontinued operations (net of tax of $4,578)			25,203
Net income	33,564		96,844
Net income per common share from continuing operations, Basic	$ 0.18		$ 0.38
Net income per common share from continuing operations, Diluted	$ 0.15		$ 0.30
Net income per common share, Basic	$ 0.18		$ 0.52
Net income per common share, Diluted	$ 0.15		$ 0.42
Weighted average common share-basic	185,838		184,720
Weighted average common share-diluted	231,153		232,080
Gain on disposal of discontinued operations, tax			4,578
Originally Reported [Member]
Change in Accounting Principle [Line Items]
Net revenues			377,161
Cost of revenues			184,752
Gross profit			192,409
Engineering and development			47,977
Selling and administrative			58,229
Acquired intangible asset amortization			7,291
Restructuring and other			413
Total operating expenses			113,910
Income from operations			78,499
Interest income			1,287
Interest expense and other, net			(6,176)
Income from continuing operations before income taxes			73,610
Provision for income taxes			5,486
Income from continuing operations			68,124
Income from discontinued operations before income taxes			1,278
Benefit from income taxes			(267)
Income from discontinued operations			1,545
Gain on disposal of discontinued operations (net of tax of $4,578)			25,203
Net income			94,872
Net income per common share from continuing operations, Basic			$ 0.37
Net income per common share from continuing operations, Diluted			$ 0.29
Net income per common share, Basic			$ 0.51
Net income per common share, Diluted			$ 0.41
Weighted average common share-basic			184,720
Weighted average common share-diluted			232,080
Effect Of Accounting Change [Member]
Change in Accounting Principle [Line Items]
Cost of revenues			(483)
Gross profit			483
Engineering and development			(833)
Selling and administrative			(498)
Total operating expenses			(1,331)
Income from operations			1,814
Income from continuing operations before income taxes			1,814
Income from continuing operations			1,814
Income from discontinued operations before income taxes			158
Income from discontinued operations			158
Net income			1,972
Net income per common share from continuing operations, Basic			$ 0.01
Net income per common share from continuing operations, Diluted			$ 0.01
Net income per common share, Basic			$ 0.01
Net income per common share, Diluted			$ 0.01
As Adjusted [Member]
Change in Accounting Principle [Line Items]
Net revenues			377,161
Cost of revenues			184,269
Gross profit			192,892
Engineering and development			47,144
Selling and administrative			57,731
Acquired intangible asset amortization			7,291
Restructuring and other			413
Total operating expenses			112,579
Income from operations			80,313
Interest income			1,287
Interest expense and other, net			(6,176)
Income from continuing operations before income taxes			75,424
Provision for income taxes			5,486
Income from continuing operations			69,938
Income from discontinued operations before income taxes			1,436
Benefit from income taxes			(267)
Income from discontinued operations			1,703
Gain on disposal of discontinued operations (net of tax of $4,578)			25,203
Net income			$ 96,844
Net income per common share from continuing operations, Basic			$ 0.38
Net income per common share from continuing operations, Diluted			$ 0.30
Net income per common share, Basic			$ 0.52
Net income per common share, Diluted			$ 0.42
Weighted average common share-basic			184,720
Weighted average common share-diluted			232,080

[1] Interest income and interest expense and other are included in Corporate and Eliminations.

[2] Included in the income (loss) from continuing operations before income taxes for each of the segments are charges for the three months ended April 1, 2012 and April 3, 2011 that include restructuring and other, net, and provision for excess and obsolete inventory, as follows:

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Financial Instruments And Derivatives (Schedule Of Effect Of Derivative Instruments In Statement Of Operations Recognized) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Derivatives [Line Items]
Foreign exchange contracts derivatives not designated as hedging instruments, (Gains) Losses Recognized in Statement of Operations	$ 2,880	$ 827
Interest Expense And Other [Member]
Derivatives [Line Items]
Foreign exchange contracts derivatives not designated as hedging instruments, (Gains) Losses Recognized in Statement of Operations	$ 2,880	$ 827

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 533,396	$ 573,736
Marketable securities	87,223	96,502
Accounts receivable, less allowance for doubtful accounts of $4,102 at April 1, 2012 and December 31, 2011	221,547	129,330
Inventories:
Parts	89,125	109,315
Assemblies in process	28,576	33,856
Finished goods	20,529	16,892
Inventories, total	138,230	160,063
Deferred tax assets	56,601	53,948
Prepayments and other current assets	83,994	86,308
Total current assets	1,120,991	1,099,887
Property, plant and equipment	809,249	798,194
Less: Accumulated depreciation	570,632	565,987
Net property, plant and equipment	238,617	232,207
Long-term marketable securities	121,512	84,407
Retirement plan assets	9,244	8,840
Intangible assets, net	374,546	392,975
Goodwill	352,778	352,778
Other assets	20,460	17,545
Total assets	2,238,148	2,188,639
Current liabilities:
Accounts payable	106,381	69,842
Accrued employees' compensation and withholdings	59,321	90,427
Deferred revenue and customer advances	86,622	78,670
Contingent consideration	61,210	68,892
Other accrued liabilities	59,857	63,280
Current debt	2,431	2,573
Total current liabilities	375,822	373,684
Long-term deferred revenue and customer advances	23,885	33,541
Retirement plan liabilities	78,251	76,638
Deferred tax liabilities	29,395	16,049
Long-term other accrued liabilities	20,299	23,711
Long-term debt	161,803	159,956
Total liabilities	689,455	683,579
Commitments and contingencies (Note O)
SHAREHOLDERS' EQUITY
Common stock, $0.125 par value, 1,000,000 shares authorized, 186,418 shares and 183,587 shares issued and outstanding at April 1, 2012 and December 31, 2011, respectively	23,302	22,948
Additional paid-in capital	1,302,660	1,293,130
Accumulated other comprehensive income	4,933	4,746
Retained earnings	217,798	184,236
Total shareholders' equity	1,548,693	1,505,060
Total liabilities and shareholders' equity	$ 2,238,148	$ 2,188,639

XML

Financial Instruments And Derivatives (Schedule Of Fair Value Of Financial Assets And Liabilities Measured On Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	$ 570,677	$ 593,402
Derivatives, Assets	146
Assets	570,823	593,402
Derivatives, Liabilities		314
Contingent consideration	61,210	68,892
Liabilities	61,210	69,206
Money Market Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	350,544	396,329
U.S. Government Agency Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	91,293	83,197
Corporate Debt Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	46,069	44,829
Commercial Paper [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	33,539	29,924
U.S. Treasury Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	23,600	14,180
Certificates Of Deposit And Time Deposits [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	16,183	16,432
Equity And Debt Mutual Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	9,167	8,237
Non-U.S. Government Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	282	274
Available-for-sale Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	570,677
Level 1 [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities		419,020
Derivatives, Assets
Assets	383,593	419,020
Derivatives, Liabilities
Contingent consideration
Liabilities
Level 1 [Member] | Money Market Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	350,544	396,329
Level 1 [Member] | U.S. Government Agency Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 1 [Member] | Commercial Paper [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 1 [Member] | U.S. Treasury Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	23,600	14,180
Level 1 [Member] | Certificates Of Deposit And Time Deposits [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 1 [Member] | Equity And Debt Mutual Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	9,167	8,237
Level 1 [Member] | Non-U.S. Government Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	282	274
Level 1 [Member] | Available-for-sale Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	383,593
Level 2 [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities		174,382
Derivatives, Assets	146
Assets	187,230	174,382
Derivatives, Liabilities		314
Contingent consideration
Liabilities		314
Level 2 [Member] | Money Market Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 2 [Member] | U.S. Government Agency Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	91,293	83,197
Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	46,069	44,829
Level 2 [Member] | Commercial Paper [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	33,539	29,924
Level 2 [Member] | U.S. Treasury Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 2 [Member] | Certificates Of Deposit And Time Deposits [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	16,183	16,432
Level 2 [Member] | Equity And Debt Mutual Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 2 [Member] | Non-U.S. Government Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 2 [Member] | Available-for-sale Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities	187,084
Level 3 [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Derivatives, Assets
Assets
Derivatives, Liabilities
Contingent consideration	61,210	68,892
Liabilities	61,210	68,892
Level 3 [Member] | Money Market Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | U.S. Government Agency Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | Commercial Paper [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | U.S. Treasury Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | Certificates Of Deposit And Time Deposits [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | Equity And Debt Mutual Funds [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | Non-U.S. Government Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities
Level 3 [Member] | Available-for-sale Securities [Member]
Fair Value Of Assets And Liabilities Measured On A Recurring Basis [Line Items]
Available for sale securities

XML

Condensed Consolidated Statements Of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Condensed Consolidated Statements Of Comprehensive Income [Abstract]
Net income	$ 33,564	$ 96,844
Other comprehensive income, net of tax:
Foreign currency translation reclassification adjustment included in net income		2,266
Unrealized gains on investments:
Unrealized gains on investments arising during period	744	199
Less: Reclassification adjustment for gains included in net income	(466)	(184)
unrealized gains on investments	278	15
Defined benefit pension and post-retirement plans:
Amortization of prior service (benefit) cost included in net periodic pension and post-retirement costs	(92)	6
Other comprehensive income	186	2,287
Comprehensive income	$ 33,750	$ 99,131

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Stock-Based Compensation (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]
Restricted stock unit awards to employees	1.5	1.5
Weighted average grant date fair value of restricted stock units granted	$ 16.88	$ 16.23
Number of service-based stock options granted to executive officers	0.2	0.1
Weighted average grant date fair value of stock options granted to executive officers	$ 6.85	$ 6.74
Term of stock options granted, years	seven
Stock Options [Member]
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]
Period of stock granted to employees and executive officers vest in equal installments, years	4
Stock Purchase Rights [Member]
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]
Weighted average grant date fair value of stock options granted to executive officers	$ 4.09	$ 3.66
Restricted Stock Units [Member]
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]
Period of stock granted to employees and executive officers vest in equal installments, years	four

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Restructuring And Other, Net (Tables)

3 Months Ended

Apr. 01, 2012

Restructuring And Other, Net [Abstract]

Schedule Of Restructuring And Other, Net

	Severance and Benefits			Facility Exit Costs			Total
	(in thousands)
Pre-2011 Activities
Balance at December 31, 2010	$	712		$	3,263		$	3,975
Provision		117			—			117
Change in estimate		155			(485	)		(330	)
Cash payments		(984	)		(916	)		(1,900	)
Balance at December 31, 2011		—			1,862			1,862
Cash payments		—			(189	)		(189	)
Balance at April 1, 2012	$	—		$	1,673		$	1,673
2011 Activities
Q1 2011 Activity:
Provision	$	572		$	—		$	572
Cash payments		(476	)		—			(476	)
Balance at December 31, 2011		96			—			96
Cash payments		(96	)		—			(96	)
Balance at April 1, 2012	$	—		$	—		$	—
Q2 2011 Activity:
Provision	$	344		$	—		$	344
Cash payments		(115	)		—			(115	)
Balance at December 31, 2011		229			—			229
Cash payments		(229	)		—			(229	)
Balance at April 1, 2012	$	—		$	—		$	—
Balance at April 1, 2012	$	—		$	1,673		$	1,673

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Restructuring And Other, Net (Schedule Of Restructuring And Other, Net) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Apr. 01, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Ending balance	$ 1,673
Facility Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Ending balance	1,673
Pre-2011 Activities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	1,862	3,975
Provision		117
Change in estimate		(330)
Cash payments	(189)	(1,900)
Ending balance	1,673	1,862
Pre-2011 Activities [Member] | Severance And Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance		712
Provision		117
Change in estimate		155
Cash payments		(984)
Pre-2011 Activities [Member] | Facility Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	1,862	3,263
Change in estimate		(485)
Cash payments	(189)	(916)
Ending balance	1,673	1,862
Q1 2011 Activity [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	96
Provision		572
Cash payments	(96)	(476)
Ending balance		96
Q1 2011 Activity [Member] | Severance And Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	96
Provision		572
Cash payments	(96)	(476)
Ending balance		96
Q2 2011 Activity [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	229
Provision		344
Cash payments	(229)	(115)
Ending balance		229
Q2 2011 Activity [Member] | Severance And Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	229
Provision		344
Cash payments	(229)	(115)
Ending balance		$ 229

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Commitments And Contingencies

3 Months Ended

Apr. 01, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

O. Commitments and Contingencies

Purchase Commitments

As of April 1, 2012, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments aggregate to approximately $273.2 million, of which $272.8 million is for less than one year.

Legal Claims

Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on Teradyne's results of operations, financial condition or cash flows.

XML

Retirement Plans (Tables)

3 Months Ended

Apr. 01, 2012

Defined Benefit Pension Plans [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule Of Net Periodic Pension Cost

	For the Three Months Ended
	April 1,  2012			April 3,  2011
	(in thousands)
Service cost	$	722		$	769
Interest cost		4,083			4,327
Expected return on plan assets		(4,087	)		(3,913	)
Amortization of unrecognized:
Prior service cost		58			155
Total net periodic pension cost	$	776		$	1,338

Post-Retirement Benefit Plans [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule Of Net Periodic Pension Cost

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Service cost	$	19		$	16
Interest cost		110			136
Amortization of unrecognized:
Prior service benefit		(150	)		(149	)
Total net periodic post-retirement (benefit) cost	$	(21	)	$	3

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Stock Repurchase Program

3 Months Ended

Apr. 01, 2012

Stock Repurchase Program [Abstract]

Stock Repurchase Program

Q. Stock Repurchase Program

In November 2010, the Board authorized a stock repurchase program for up to $200 million. In the three months ended April 1, 2012 and April 3, 2011, Teradyne did not repurchase any shares. Cumulatively, as of April 1, 2012, Teradyne has repurchased 2.6 million shares of common stock for $31.2 million at an average price of $11.84.

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Segment Information (Schedule Of Segment Information) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012		Apr. 03, 2011
Segment Reporting Information [Line Items]
Net revenues	$ 396,668		$ 377,161
Income (loss) from continuing operations before income taxes	41,244	[1],[2]	75,424	[1],[2]
Semiconductor Test [Member]
Segment Reporting Information [Line Items]
Net revenues	267,588		319,250
Income (loss) from continuing operations before income taxes	34,998	[1],[2]	76,926	[1],[2]
Systems Test Group [Member]
Segment Reporting Information [Line Items]
Net revenues	97,752		57,911
Income (loss) from continuing operations before income taxes	21,978	[1],[2]	5,491	[1],[2]
Wireless Test [Member]
Segment Reporting Information [Line Items]
Net revenues	31,328
Income (loss) from continuing operations before income taxes	(12,312)	[1],[2]
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Income (loss) from continuing operations before income taxes	$ (3,420)	[1],[2]	$ (6,993)	[1],[2]

[1] Interest income and interest expense and other are included in Corporate and Eliminations.

[2] Included in the income (loss) from continuing operations before income taxes for each of the segments are charges for the three months ended April 1, 2012 and April 3, 2011 that include restructuring and other, net, and provision for excess and obsolete inventory, as follows:

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Cash flows from operating activities:
Net income	$ 33,564	$ 96,844
Less: Income from discontinued operations		1,703
Less: Gain on disposal of discontinued operations		25,203
Income from continuing operations	33,564	69,938
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation	12,288	13,057
Amortization	21,815	10,355
Stock-based compensation	10,766	7,464
Provision for excess and obsolete inventory	1,574	4,627
Non cash charge for the sale of inventories revalued at the date of acquisition	4,871
Contingent consideration adjustment	(1,858)
Deferred taxes	7,699
Other	(454)	618
Changes in operating assets and liabilities, net of businesses sold:
Accounts receivable	(92,217)	(17,498)
Inventories	23,636	(10,709)
Other assets	1,885	(2,266)
Deferred revenue and customer advances	(1,704)	(24,553)
Accounts payable and other accrued expenses	(9,635)	(26,014)
Retirement plan contributions	(1,061)	(1,176)
Net cash provided by continuing operations	11,169	23,843
Net cash used for discontinued operations		(4,225)
Net cash provided by operating activities	11,169	19,618
Cash flows from investing activities:
Investments in property, plant and equipment	(27,074)	(22,131)
Purchases of available-for-sale marketable securities	(80,095)	(211,289)
Proceeds from sales and maturities of available-for-sale marketable securities	52,805	188,448
Net cash used for continuing operations	(54,364)	(44,972)
Net cash provided by discontinued operations		39,030
Net cash used for investing activities	(54,364)	(5,942)
Cash flows from financing activities:
Issuance of common stock under employee stock option and stock purchase plans	9,925	10,076
Payment of contingent consideration	(5,824)
Payments of long-term debt	(1,246)	(1,222)
Net cash provided by financing activities	2,855	8,854
(Decrease) Increase in cash and cash equivalents	(40,340)	22,530
Cash and cash equivalents at beginning of period	573,736	397,737
Cash and cash equivalents at end of period	$ 533,396	$ 420,267

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 4,102	$ 4,102
Common stock, par value	$ 0.125	$ 0.125
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	186,418	183,587
Common stock, shares outstanding	186,418	183,587

XML

Stock-Based Compensation

3 Months Ended

Apr. 01, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

J. Stock-Based Compensation

Restricted stock unit awards granted to employees vest in equal installments over four years. A portion of the restricted stock unit awards granted to executive officers is subject to service-based vesting and a portion of the awards is subject to performance-based vesting. The percentage level of performance satisfied for performance-based grants is assessed on or near the anniversary of the grant date and, in turn, that percentage level determines the number of performance-based restricted stock units available for vesting over the vesting period; portions of the performance-based grants not available for vesting are forfeited. Service-based stock options vest in equal installments over four years, and have a term of seven years from the date of grant.

During the three months ended April 1, 2012, Teradyne granted 1.5 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.88 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.85.

During the three months ended April 3, 2011, Teradyne granted 1.5 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.23 and 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.74.

The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Expected life (years)		3.50			4.00
Interest rate		0.4	%		1.5	%
Volatility-historical		56.0	%		52.1	%
Dividend yield		0.0	%		0.0	%

Teradyne determined the stock options' expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant. Volatility was determined using historical volatility for a period equal to the expected life. The risk-free rate was determined using the U.S. Treasury yield curve in effect at the time of grant.

The weighted-average fair value of employee stock purchase rights granted in the first three months of 2012 and 2011 was $4.09 and $3.66, respectively. The fair value of the employees' purchase rights was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
Expected life (years)		0.5			0.5
Interest rate		0.06	%		0.14	%
Volatility-historical		52.6	%		41.0	%
Dividend yield		0.0	%		0.0	%

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Document And Entity Information	3 Months Ended
	Apr. 01, 2012	May 07, 2012
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 01, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Trading Symbol	ter
Entity Registrant Name	TERADYNE, INC
Entity Central Index Key	0000097210
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		186,671,490

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Intangible Assets

3 Months Ended

Apr. 01, 2012

Intangible Assets [Abstract]

Intangible Assets

K. Intangible Assets

Amortizable intangible assets consist of the following and are included in intangible assets on the balance sheet:

	April 1, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,155	$	104,378	$	253,777		6.3 years
Customer relationships and service and software maintenance contracts		144,971		49,788		95,183		8.0 years
Trade names and trademarks		33,840		8,254		25,586		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,966	$	163,420	$	374,546		7.0 years

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,155	$	91,391	$	266,764		6.3 years
Customer relationships and service and software maintenance contracts		144,971		45,230		99,741		8.0 years
Trade names and trademarks		33,840		7,370		26,470		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,966	$	144,991	$	392,975		7.0 years

Aggregate intangible asset amortization expense was $18.4 million and $7.3 million, respectively, for the three months ended April 1, 2012 and April 3, 2011. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:

Year	Amortization Expense (in thousands)
2012 (remainder)	$	55,079
2013		72,459
2014		69,374
2015		52,351
2016		52,351

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Condensed Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Apr. 01, 2012		Apr. 03, 2011
Net revenues:
Products	$ 330,891		$ 315,719
Services	65,777		61,442
Total net revenues	396,668		377,161
Cost of revenues:
Cost of products	174,001		152,880
Cost of services	31,741		31,389
Total cost of revenues	205,742		184,269
Gross profit	190,926		192,892
Operating expenses:
Engineering and development	60,135		47,144
Selling and administrative	67,777		57,731
Acquired intangible asset amortization	18,429		7,291
Restructuring and other	(1,825)		413
Total operating expenses	144,516		112,579
Income from operations	46,410		80,313
Interest income	893		1,287
Interest expense and other, net	(6,059)		(6,176)
Income from continuing operations before income taxes	41,244	[1],[2]	75,424	[1],[2]
Provision for income taxes	7,680		5,486
Income from continuing operations	33,564		69,938
Income from discontinued operations before income taxes			1,436
Benefit from income taxes			(267)
Income from discontinued operations			1,703
Gain on disposal of discontinued operations (net of tax of $4,578)			25,203
Net income	$ 33,564		$ 96,844
Net income per common share from continuing operations:
Basic	$ 0.18		$ 0.38
Diluted	$ 0.15		$ 0.30
Net income per common share:
Basic	$ 0.18		$ 0.52
Diluted	$ 0.15		$ 0.42
Weighted average common share-basic	185,838		184,720
Weighted average common share-diluted	231,153		232,080

[1] Interest income and interest expense and other are included in Corporate and Eliminations.

[2] Included in the income (loss) from continuing operations before income taxes for each of the segments are charges for the three months ended April 1, 2012 and April 3, 2011 that include restructuring and other, net, and provision for excess and obsolete inventory, as follows:

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Discontinued Operations

3 Months Ended

Apr. 01, 2012

Discontinued Operations [Abstract]

Discontinued Operations

E. Discontinued Operations

On March 21, 2011, Teradyne completed the sale of its Diagnostic Solutions business unit, which was included in the Systems Test Group segment, to SPX Corporation for $40.2 million in cash. Teradyne sold this business as its growth potential as a stand-alone business within Teradyne was significantly less than if it was part of a larger automotive supplier. The financial information for Diagnostic Solutions has been reclassified to discontinued operations for all periods presented. Net revenues and income from discontinued operations for the three months ended April 3, 2011 were as follows:

	April 3, 2011
	(in thousands)
Net revenues	$	9,086
Income from discontinued operations before income taxes	$	1,436
Gain from disposal of discontinued operations before income taxes		29,781
Income tax provision		4,311
Income from discontinued operations	$	26,906

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Recently Issued Accounting Pronouncements

3 Months Ended

Apr. 01, 2012

Recently Issued Accounting Pronouncements [Abstract]

Recently Issued Accounting Pronouncements

D. Recently Issued Accounting Pronouncements

In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about Offsetting Assets and Liabilities." This ASU is intended to enhance a financial statement user's ability to understand the effects of netting arrangements on an entity's financial statements, including financial instruments and derivative instruments that are either offset or subject to an enforceable master netting or similar arrangement. The scope of this ASU includes derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. This ASU includes enhanced disclosure requirements, including both gross and net information about instruments and transactions eligible for offset or subject to an agreement similar to a master netting arrangement. The provisions of this ASU will be applied retrospectively for interim and annual periods beginning on or after January 1, 2013. Teradyne is currently evaluating the impact of this new ASU.

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Segment Information

3 Months Ended

Apr. 01, 2012

Segment Information [Abstract]

Segment Information

P. Segment Information

Teradyne has three operating segments (Semiconductor Test, Systems Test Group and Wireless Test), which are its reportable segments. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The Systems Test Group segment includes operations related to design, manufacturing and marketing of products and services for military/aerospace instrumentation test, storage test and circuit-board test. The Wireless Test segment includes operations related to design, manufacturing and marketing of wireless test products and services. Each operating segment has a segment manager who is directly accountable to and maintains regular contact with Teradyne's chief operating decision maker (Teradyne's chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment.

Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income before income taxes. The accounting policies of the business segments are the same as those described in Note B "Accounting Policies" in Teradyne's Annual Report on Form 10-K for the year ended December 31, 2011. Segment information is as follows:

	Semiconductor Test		Systems Test Group		Wireless Test			Corporate And Eliminations			Consolidated
	(in thousands)
Three months ended April 1, 2012:
Net revenues	$	267,588	$	97,752	$	31,328		$	—		$	396,668
Income (loss) from continuing operations before income taxes (1)(2)		34,998		21,978		(12,312	)		(3,420	)		41,244
Three months ended April 3, 2011:
Net revenues	$	319,250	$	57,911	$	—		$	—		$	377,161
Income (loss) from continuing operations before income taxes (1)(2)		76,926		5,491		—			(6,993	)		75,424

(1) Interest income and interest expense and other are included in Corporate and Eliminations.

(2) Included in the income (loss) from continuing operations before income taxes for each of the segments are charges for the three months ended April 1, 2012 and April 3, 2011 that include restructuring and other, net, and provision for excess and obsolete inventory, as follows:

Included in the Semiconductor Test segment are charges for the following:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	212	$	4,442
Restructuring and other, net		—		891
Total	$	212	$	5,333

Included in the Systems Test Group segment are charges for the following:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	889	$	185
Restructuring and other, net		—		(246	)
Total	$	889	$	(61	)

Included in the Wireless Test segment are charges and credits in the following accounts:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—inventory step-up	$	4,871	$	—
Cost of revenues—provision for excess and obsolete inventory		473		—
Total	$	5,344	$	—

Included in the Corporate and Eliminations segment are charges for the following:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Restructuring and other, net	$	(1,825	)	$	(232	)
Total	$	(1,825	)	$	(232	)

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Net Income Per Common Share

3 Months Ended

Apr. 01, 2012

Net Income Per Common Share [Abstract]

Net Income Per Common Share

L. Net Income per Common Share

The following table sets forth the computation of basic and diluted net income per common share:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands, except per share amounts)
Income from continuing operations	$	33,564	$	69,938
Income from discontinued operations		—		1,703
Gain on disposal of discontinued operations		—		25,203
Net income for basic and diluted net income per share	$	33,564	$	96,844
Weighted average common shares-basic		185,838		184,720
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes (1)		23,000		23,360
Convertible notes hedge warrant shares (2)		18,319		18,822
Restricted stock units		1,647		3,512
Stock options		2,325		1,605
Employee stock purchase rights		24		61
Dilutive potential common shares		45,315		47,360
Weighted average common shares-diluted		231,153		232,080
Net income per common share-basic:
Continuing operations	$	0.18	$	0.38
Discontinued operations		—		0.14
	$	0.18	$	0.52
Net income per common share-diluted:
Continuing operations	$	0.15	$	0.30
Discontinued operations		—		0.12
	$	0.15	$	0.42

(1) Incremental shares from assumed conversion of the convertible notes for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

(2) Convertible notes hedge warrant shares for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period.

The computation of diluted net income per common share for the three months ended April 1, 2012 excludes the effect of the potential exercise of stock options to purchase approximately 0.3 million shares and restricted stock units of 1.0 million because the effect would have been anti-dilutive.

The computation of diluted net income per common share for the three months ended April 3, 2011 excludes the effect of the potential exercise of stock options to purchase approximately 1.6 million shares because the effect would have been anti-dilutive.

With respect to the Teradyne's convertible debt, Teradyne intends to settle its conversion spread (i.e., the intrinsic value of the embedded option feature contained in the convertible debt) in shares. Teradyne accounts for its conversion spread using the treasury stock method.

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Deferred Revenue And Customer Advances

3 Months Ended

Apr. 01, 2012

Deferred Revenue And Customer Advances [Abstract]

Deferred Revenue And Customer Advances

H. Deferred Revenue and Customer Advances

Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances.

	April 1, 2012		December 31, 2011
	(in thousands)
Customer advances	$	65,789	$	70,001
Maintenance, training and extended warranty		37,408		33,953
Undelivered elements		7,211		7,939
Acceptance		99		318
Total deferred revenue and customer advances	$	110,507	$	112,211

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Stock-Based Compensation (Schedule Of Estimated Fair Value Of Stock Options Assumptions) (Details)	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Stock Options [Member]
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]
Expected life (years)	3.50	4.00
Interest rate	0.40%	1.50%
Volatility-historical	56.00%	52.10%
Dividend yield	0.00%	0.00%
Stock Purchase Rights [Member]
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items]
Expected life (years)	0.5	0.5
Interest rate	0.06%	0.14%
Volatility-historical	52.60%	41.00%
Dividend yield	0.00%	0.00%

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Financial Instruments And Derivatives

3 Months Ended

Apr. 01, 2012

Financial Instruments And Derivatives [Abstract]

Financial Instruments And Derivatives

F. Financial Instruments and Derivatives

Financial Instruments

Teradyne uses the market and income approach to value its financial instruments and there was no change in valuation techniques used by Teradyne during the three months ended April 1, 2012 and April 3, 2011. As defined in ASC 820-10, "Fair Value Measurements and Disclosures", fair value is the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820-10 requires that assets and liabilities are carried at fair value and are classified in one of the following three categories:

Level 1: Quoted prices in active markets for identical assets as of the reporting date.

Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities' relationship to other benchmark quoted prices.

Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne's own data.

During the three months ended April 1, 2012 and April 3, 2011, there were no significant transfers in and out of Level 1, Level 2 and Level 3.

The following table sets forth by fair value hierarchy Teradyne's financial assets and liabilities that were measured at fair value on a recurring basis as of April 1, 2012 and December 31, 2011.

	April 1, 2012
	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
Available for sale securities:
Money market funds	$	350,544	$	—	$	—	$	350,544
U.S government agency securities		—		91,293		—		91,293
Corporate debt securities		—		46,069		—		46,069
Commercial paper		—		33,539		—		33,539
U.S Treasury securities		23,600		—		—		23,600
Certificates of deposit and time deposits		—		16,183		—		16,183
Equity and debt mutual funds		9,167		—		—		9,167
Non-U.S. government securities		282		—		—		282
Total		383,593		187,084		—		570,677
Derivatives		—		146		—		146
Total	$	383,593	$	187,230	$	—	$	570,823
Liabilities
Contingent consideration	$	—	$	—	$	61,210	$	61,210
Total	$	—	$	—	$	61,210	$	61,210

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	350,544	$	11,398	$	—	$	361,942
Marketable securities		4,011		83,212		—		87,223
Long-term marketable securities		29,038		92,474		—		121,512
Prepayments and other current assets		—		146		—		146
	$	383,593	$	187,230	$	—	$	570,823
Liabilities
Contingent consideration	$	—	$	—	$	61,210	$	61,210
	$	—	$	—	$	61,210	$	61,210

	December 31, 2011
	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
Available for sale securities:
Money market funds	$	396,329	$	—	$	—	$	396,329
U.S government agency securities		—		83,197		—		83,197
Corporate debt securities		—		44,829		—		44,829
Commercial paper		—		29,924		—		29,924
Certificates of deposit and time deposits		—		16,432		—		16,432
U.S Treasury securities		14,180		—		—		14,180
Equity and debt mutual funds		8,237		—		—		8,237
Non-U.S. government securities		274		—		—		274
Total	$	419,020	$	174,382	$	—	$	593,402
Liabilities
Derivatives	$	—	$	314	$	—	$	314
Contingent consideration		—		—		68,892		68,892
Total	$	—	$	314	$	68,892	$	69,206

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	396,329	$	16,164	$	—	$	412,493
Marketable securities		9,044		87,458		—		96,502
Long-term marketable securities		13,647		70,760		—		84,407
	$	419,020	$	174,382	$	—	$	593,402
Liabilities
Other accrued liabilities	$	—	$	314	$	—	$	314
Contingent consideration		—		—		68,892		68,892
	$	—	$	314	$	68,892	$	69,206

Contingent consideration is measured at fair value and is based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions and estimates to forecast a range of outcomes for the contingent consideration. Teradyne assesses these assumptions and estimates on a quarterly basis as additional data impacting the assumptions is obtained. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within the condensed consolidated statements of operations.

The following table provides quantitative information associated with the fair value measurement of the Teradyne's Level 3 inputs:

Liability	Fair Value (Thousands)		Valuation Technique	Unobservable Inputs	Weighted Average
Contingent consideration	$	61,210	Income approach— discounted cash flow	Revenue earn-out—probability of low case (scenario) for calendar year 2012 revenue.		70	%
				Revenue earn-out—probability of high case (scenario) for calendar year 2012 revenue.		30	%
				Discount rate for revenue earn-out		3.5	%
				Discount rate for cellular earn-out		3.5	%

The significant unobservable inputs used in the fair value measurement of contingent consideration are the probabilities of successful achievement of calendar year 2012 revenues, the quarterly period in which the revenues are expected to be achieved and a discount rate. Increases or decreases in any of the probabilities of success would result in a higher or lower fair value measurement. Increases or decreases in the period in which milestones will be achieved would result in a lower or higher fair value measurement, respectively.

The following table represents changes in the fair value of Level 3 contingent consideration:

	Contingent consideration
	(in thousands)
Balance at December 31, 2011	$	68,892
Fair value adjustment		(1,858	)
Payment		(5,824	)
Balance at April 1, 2012	$	61,210

During the three months ended April 1, 2012, Teradyne recorded a net gain of $0.3 million from sales of marketable securities. During the three months ended April 3, 2011, Teradyne recorded a net loss of $0.2 million from sales of marketable securities.

Realized losses from sales of marketable securities are included in interest expense and other. Realized gains from sales of marketable securities are included in interest income.

The carrying amounts and fair values of financial instruments at April 1, 2012 and December 31, 2011 were as follows:

	April 1, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Cash equivalents	$	361,942	$	361,942	$	412,493	$	412,493
Marketable securities		208,735		208,735		180,909		180,909
Convertible debt(1)		159,373		595,175		156,098		485,925
Japan loan		4,861		4,861		6,431		6,431

(1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion feature.

The fair values of cash and cash equivalents, accounts receivable, net and accounts payable approximate the carrying amount due to the short-term maturities of these instruments.

At April 1, 2012 and December 31, 2011, these investments were reported as follows:

	April 1, 2012
	Available-for-Sale									Fair Market Value  of Investments with Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
Money market funds	$	350,544	$	—	$	—		$	350,544	$	—
U.S. government agency securities		91,178		163		(48	)		91,293		26,014
Corporate debt securities		44,602		1,514		(47	)		46,069		13,295
Commercial paper		33,542		6		(9	)		33,539		9,482
U.S. Treasury securities		23,568		50		(18	)		23,600		6,968
Certificates of deposit and time deposits		16,186		—		(3	)		16,183		5,810
Equity and debt mutual funds		8,230		939		(2	)		9,167		135
Non-U.S. government securities		265		17		—			282		—
	$	568,115	$	2,689	$	(127	)	$	570,677	$	61,704

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value  of Investments with Unrealized Losses
	(in thousands)
Cash and cash equivalents	$	361,942	$	—	$	—		$	361,942	$	—
Marketable securities		87,222		19		(18	)		87,223		28,698
Long-term marketable securities		118,951		2,670		(109	)		121,512		33,006
	$	568,115	$	2,689	$	(127	)	$	570,677	$	61,704

	December 31, 2011
	Available-for-Sale									Fair Market Value  of Investments with Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
Money market funds	$	396,329	$	—	$	—		$	396,329	$	—
U.S. government agency securities		83,070		152		(25	)		83,197		28,510
Corporate debt securities		43,077		1,893		(141	)		44,829		17,033
Commercial paper		29,932		2		(10	)		29,924		9,479
Certificates of deposit and time deposits		16,437		—		(5	)		16,432		5,800
U.S. Treasury securities		14,141		39		—			14,180		—
Equity and debt mutual funds		7,876		477		(116	)		8,237		3,749
Non-U.S. government securities		256		18		—			274		—
	$	591,118	$	2,581	$	(297	)	$	593,402	$	64,571

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value  of Investments with Unrealized Losses
	(in thousands)
Cash and cash equivalents	$	412,493	$	—	$	—		$	412,493	$	—
Marketable securities		96,518		24		(40	)		96,502		35,595
Long-term marketable securities		82,107		2,557		(257	)		84,407		28,976
	$	591,118	$	2,581	$	(297	)	$	593,402	$	64,571

As of April 1, 2012, the fair market value of investments with unrealized losses totaled $61.7 million. Of this value, $1.1 million had unrealized losses greater than one year and $60.6 million had unrealized losses less than one year. As of December 31, 2011, the fair market value of investments with unrealized losses totaled $64.6 million. Of this value, $2.4 million had unrealized losses greater than one year and $62.2 million had unrealized losses less than one year.

Derivatives

Teradyne conducts business in a number of foreign countries, with certain transactions denominated in local currencies. The purpose of Teradyne's foreign currency management is to minimize the effect of exchange rate fluctuations on certain foreign currency denominated net monetary assets. Teradyne does not use derivative financial instruments for trading or speculative purposes.

To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings, and is used to offset the change in fair value of the monetary assets and liabilities denominated in foreign currencies.

The notional amount of foreign exchange contracts hedging monetary assets and liabilities denominated in foreign currencies was $71.4 million and $85.4 million at April 1, 2012 and December 31, 2011, respectively.

The following table summarizes the fair value of derivative instruments at April 1, 2012 and December 31, 2011.

	Balance Sheet Location	April 1, 2012		December 31, 2011
		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Prepayments and other current assets	$	146	$	—
Foreign exchange contracts	Other accrued liabilities		—		314
		$	146	$	314

The following table summarizes the effect of derivative instruments in the statement of operations recognized during the three months ended April 1, 2012 and April 3, 2011. The table does not reflect the corresponding gains (losses) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies.

	Location of Gains Recognized in Statement of Operations	For the Three Months Ended
		April 1, 2012		April 3, 2011
		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Interest expense and other, net	$	2,880	$	827
		$	2,880	$	827

See Note G "Debt" regarding derivatives related to convertible senior notes.

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Debt

3 Months Ended

Apr. 01, 2012

Debt [Abstract]

Debt

G. Debt

Loan Agreement

On March 31, 2009, Teradyne K.K., Teradyne's wholly-owned subsidiary in Japan, entered into a loan agreement with a local bank in Japan to borrow approximately $10.0 million. The loan has a term of 5 years and a fixed interest rate of 0.81%. Approximately $6.0 million of the loan is collateralized by a real estate mortgage on Teradyne K.K.'s building and land in Kumamoto, Japan and approximately $4.0 million is unsecured. Teradyne, Inc. has guaranteed payment of the loan obligation. The loan is amortized over the term of the loan with semiannual principal payments of approximately $1.0 million payable on September 30 and March 30 each year. At April 1, 2012, approximately $2.4 million of the outstanding loan principal is included in current debt and approximately $2.4 million is classified as long-term debt.

Convertible Senior Notes

In April 2009, Teradyne issued 4.50% convertible senior notes (the "Notes") at an aggregate principal amount of $190 million. The Notes will mature on March 15, 2014, unless earlier repurchased by Teradyne or converted. The Notes are senior unsecured obligations and rank equally with all of Teradyne's existing and future senior debt and senior to any of Teradyne's subordinated debt.

The Notes may be converted, under certain circumstances and during certain periods, at an initial conversion rate of approximately 182.65 shares of Teradyne's common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $5.48, a 25% conversion premium based on the last reported sale price of $4.38 per share of Teradyne's common stock on March 31, 2009.The conversion rate is subject to adjustment in certain circumstances.

During the three months ended April 1, 2012, the following circumstance that allows holders to convert their Notes at their option prior to December 15, 2013 occurred: the last reported sale price of Teradyne's common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeded 130% of the conversion price in effect on the last trading day of the immediately preceding calendar quarter. As of May 11, 2012, no holders have exercised their option to convert their Notes.

Concurrently with the offering of the Notes, Teradyne entered into a convertible note hedge transaction with a strike price equal to the initial conversion price of the Notes, or approximately $5.48. The convertible note hedge allows Teradyne to receive shares of its common stock and/or cash related to the excess conversion value that it would pay to the holders of the Notes upon conversion. The convertible note hedges will cover, subject to customary antidilution adjustments, approximately 34,703,196 shares of Teradyne's common stock. Teradyne paid approximately $64.6 million for the convertible note hedges.

Separately, Teradyne entered into a warrant transaction with a strike price of approximately $7.67 per share, which was 75% higher than the closing price of Teradyne's common stock on March 31, 2009. Teradyne received approximately $43.0 million for the warrants.

The convertible note hedge and warrant transaction will generally have the effect of increasing the conversion price of the Notes to approximately $7.67 per share of Teradyne's common stock, representing a 75% conversion premium based upon the closing price of Teradyne's common stock on March 31, 2009.

The Notes are classified as long-term debt in the balance sheet at April 1, 2012 and December 31, 2011. The tables below represent the components of Teradyne's convertible senior notes:

	April 1, 2012		December 31, 2011
	(in thousands)
Debt principal	$	190,000	$	190,000
Unamortized debt discount		30,627		33,902
Net carrying amount of the convertible debt	$	159,373	$	156,098

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Contractual interest expense	$	2,161	$	2,209
Amortization of the discount component and debt issue fees		3,479		3,061
Total interest expense on the convertible debt	$	5,640	$	5,270

As of April 1, 2012, the unamortized discount was $30.6 million, which will be amortized over approximately 2.0 years, and the carrying amount of the equity component was $63.4 million. As of April 1, 2012, the conversion rate was equal to the initial conversion price of approximately $5.48 per share and the if-converted value of the Notes was $586.1 million.

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Product Warranty

3 Months Ended

Apr. 01, 2012

Product Warranty [Abstract]

Product Warranty

I. Product Warranty

Teradyne generally provides a one-year warranty on its products commencing upon installation or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities.

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	8,153		$	9,886
Accruals for warranties issued during the period		3,776			3,577
Adjustments related to pre-existing warranties		(260	)		(956	)
Settlements made during the period		(2,947	)		(3,005	)
Balance at end of period	$	8,722		$	9,502

When Teradyne receives revenue for extended warranties beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in deferred revenue and customer advances and long-term other accrued liabilities.

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Balance at beginning of period	$	12,742		$	8,972
Deferral of new extended warranty revenue		2,347			1,939
Recognition of extended warranty deferred revenue		(2,162	)		(1,041	)
Balance at end of period	$	12,927		$	9,870

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Restructuring And Other, Net (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Apr. 01, 2012
Restructuring Cost and Reserve [Line Items]
Expected lease accruals payment	$ 0.8
Future lease commitments net of expected sublease income	0.4
Lease expiration date	2013
Remaining accrual for lease payments	1.7
Contingent consideration payment	5.8
Q1 2011 Activity [Member] | Semiconductor Test [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in employees headcount	5
Q1 2011 Actions [Member] | Semiconductor Test [Member]
Restructuring Cost and Reserve [Line Items]
Severance benefit and charges	0.6
Q2 2010 Actions [Member] | Semiconductor Test [Member]
Restructuring Cost and Reserve [Line Items]
Severance benefit and charges	0.2
Q4 2010 Actions [Member] | Semiconductor Test [Member]
Restructuring Cost and Reserve [Line Items]
Severance benefit and charges	0.1
Pre-2011 Actions [Member] | Systems Test Group [Member]
Restructuring Cost and Reserve [Line Items]
Changes in estimated exit costs	(0.4)
Other [Member]
Restructuring Cost and Reserve [Line Items]
Fair value adjustment to decrease acquisition contingent consideration	1.9
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Estimated undiscounted range of outcomes for contingent consideration	66.0
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Estimated undiscounted range of outcomes for contingent consideration	$ 54.0

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Retirement Plans (Details) (USD $)	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Defined Benefit Plan Disclosure [Line Items]
Contribution to foreign pension plans	$ 700,000
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	722,000	769,000
Interest cost	4,083,000	4,327,000
Expected return on plan assets	(4,087,000)	(3,913,000)
Amortization of unrecognized, Prior service cost/benefit	58,000	155,000
Total net periodic (benefit) cost	776,000	1,338,000
Post-Retirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	19,000	16,000
Interest cost	110,000	136,000
Amortization of unrecognized, Prior service cost/benefit	(150,000)	(149,000)
Total net periodic (benefit) cost	$ (21,000)	$ 3,000

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Net Income Per Common Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended						3 Months Ended			3 Months Ended
	Apr. 01, 2012		Apr. 03, 2011		Apr. 03, 2011 Convertible Notes [Member]	Apr. 01, 2012 Convertible Notes [Member]	Apr. 03, 2011 Convertible Notes Hedge Warrant [Member]	Apr. 01, 2012 Convertible Notes Hedge Warrant [Member]	Mar. 31, 2009 Convertible Notes Hedge Warrant [Member]	Apr. 01, 2012 Stock Options [Member]	Apr. 03, 2011 Stock Options [Member]	Apr. 01, 2012 Restricted Stock Units [Member]
Net Income (Loss) Per Common Share [Line Items]
Income from continuing operations	$ 33,564		$ 69,938
Income from discontinued operations			1,703
Gain on disposal of discontinued operations			25,203
Net income for basic and diluted net income per share	$ 33,564		$ 96,844
Weighted average common shares-basic	185,838,000		184,720,000
Incremental shares from assumed conversion of convertible notes	23,000,000	[1]	23,360,000	[1]
Convertible notes hedge warrant shares	18,319,000	[2]	18,822,000	[2]
Restricted stock units	1,647,000		3,512,000
Stock options	2,325,000		1,605,000
Employee stock purchase rights	24,000		61,000
Dilutive potential common shares	45,315,000		47,360,000
Weighted average commons shares-diluted	231,153,000		232,080,000
Net income per common share-basic, Continuing operations	$ 0.18		$ 0.38
Net income per common share-basic, Discontinued operations			$ 0.14
Net income per common share-basic, Total	$ 0.18		$ 0.52
Net income per common share-diluted, Continuing operations	$ 0.15		$ 0.30
Net income per common share-diluted, Discontinued operations			$ 0.12
Net income per common share-diluted, Total	$ 0.15		$ 0.42
Computation of diluted net income per common excluding the effect of the potential exercise of stock options and restricted stock units										300,000	1,600,000	1,000,000
Initial debt conversion price	$ 5.48					$ 5.48		$ 7.67	$ 7.67
Shares that would be issued upon conversion	34,703,196				34,700,000		34,700,000

[1] Incremental shares from assumed conversion of the convertible notes for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

[2] Convertible notes hedge warrant shares for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period.

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Net Income Per Common Share (Tables)

3 Months Ended

Apr. 01, 2012

Net Income Per Common Share [Abstract]

Schedule Of Computation Of Basic And Diluted Net Income Per Common Share

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands, except per share amounts)
Income from continuing operations	$	33,564	$	69,938
Income from discontinued operations		—		1,703
Gain on disposal of discontinued operations		—		25,203
Net income for basic and diluted net income per share	$	33,564	$	96,844
Weighted average common shares-basic		185,838		184,720
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes (1)		23,000		23,360
Convertible notes hedge warrant shares (2)		18,319		18,822
Restricted stock units		1,647		3,512
Stock options		2,325		1,605
Employee stock purchase rights		24		61
Dilutive potential common shares		45,315		47,360
Weighted average common shares-diluted		231,153		232,080
Net income per common share-basic:
Continuing operations	$	0.18	$	0.38
Discontinued operations		—		0.14
	$	0.18	$	0.52
Net income per common share-diluted:
Continuing operations	$	0.15	$	0.30
Discontinued operations		—		0.12
	$	0.15	$	0.42

(1) Incremental shares from assumed conversion of the convertible notes for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

(2) Convertible notes hedge warrant shares for the three months ended April 1, 2012 and April 3, 2011 are calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period.

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Financial Instruments And Derivatives (Schedule Of Reported Available-For-Sale Marketable Securities) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012	Dec. 31, 2011
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	$ 568,115	$ 591,118
Available-for-sale marketable securities, Unrealized Gain	2,689	2,581
Available-for-sale marketable securities, Unrealized (Loss)	(127)	(297)
Available-for-sale marketable securities, Fair Market Value	570,677	593,402
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	61,704	64,571
Cash And Cash Equivalents [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	361,942	412,493
Available-for-sale marketable securities, Unrealized Gain
Available-for-sale marketable securities, Unrealized (Loss)
Available-for-sale marketable securities, Fair Market Value	361,942	412,493
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses
Marketable Securities [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	87,222	96,518
Available-for-sale marketable securities, Unrealized Gain	19	24
Available-for-sale marketable securities, Unrealized (Loss)	(18)	(40)
Available-for-sale marketable securities, Fair Market Value	87,223	96,502
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	28,698	35,595
Long-Term Marketable Securities [Member]
Schedule of Available-For-Sale Marketable Securities [Line Items]
Available-for-sale marketable securities, Cost	118,951	82,107
Available-for-sale marketable securities, Unrealized Gain	2,670	2,557
Available-for-sale marketable securities, Unrealized (Loss)	(109)	(257)
Available-for-sale marketable securities, Fair Market Value	121,512	84,407
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	$ 33,006	$ 28,976

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Retirement Plans

3 Months Ended

Apr. 01, 2012

Retirement Plans [Abstract]

Retirement Plans

N. Retirement Plans

Defined Benefit Pension Plans

Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees' years of service and compensation. Teradyne's funding policy is to make contributions to these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act ("ERISA") and the Internal Revenue Code ("IRC"), as well as unfunded foreign plans.

Components of net periodic pension cost for all plans were as follows:

	For the Three Months Ended
	April 1,  2012			April 3,  2011
	(in thousands)
Service cost	$	722		$	769
Interest cost		4,083			4,327
Expected return on plan assets		(4,087	)		(3,913	)
Amortization of unrecognized:
Prior service cost		58			155
Total net periodic pension cost	$	776		$	1,338

In the three months ended April 1, 2012, Teradyne contributed $0.7 million, primarily to its foreign pension plans.

Post-Retirement Benefit Plans

In addition to receiving pension benefits, U.S. Teradyne employees who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne's Welfare Plan, which includes death, and medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees' survivors and are available to all retirees. Substantially all of Teradyne's current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees.

Components of net periodic post-retirement cost were as follows:

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Service cost	$	19		$	16
Interest cost		110			136
Amortization of unrecognized:
Prior service benefit		(150	)		(149	)
Total net periodic post-retirement (benefit) cost	$	(21	)	$	3

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Change In Accounting Principle (Tables)

3 Months Ended

Apr. 01, 2012

Change In Accounting Principle [Abstract]

Schedule Of Condensed Consolidated Balance Sheets

	December 31, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Assets:
Total assets	$	2,188,639			—		$	2,188,639
Liabilities:
Total liabilities		683,579			—			683,579
Shareholders' Equity:
Common stock		22,948			—			22,948
Additional paid-in capital		1,293,130			—			1,293,130
Accumulated other comprehensive (loss) income		(129,875	)		134,621			4,746
Retained earnings		318,857			(134,621	)		184,236
Total shareholders' equity		1,505,060			—			1,505,060
Total liabilities and shareholders' equity	$	2,188,639			—		$	2,188,639

Schedule Of Condensed Consolidated Statements Of Operations

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands, except per share amounts)
Net revenues		377,161			—			377,161
Cost of revenues		184,752			(483	)		184,269
Gross profit		192,409			483			192,892
Operating expenses:
Engineering and development		47,977			(833	)		47,144
Selling and administrative		58,229			(498	)		57,731
Acquired intangible asset amortization		7,291			—			7,291
Restructuring and other		413			—			413
Total operating expenses		113,910			(1,331	)		112,579
Income from operations		78,499			1,814			80,313
Interest income		1,287			—			1,287
Interest expense and other, net		(6,176	)		—			(6,176	)
Income from continuing operations before income taxes		73,610			1,814			75,424
Provision for income taxes		5,486			—			5,486
Income from continuing operations		68,124			1,814			69,938
Income from discontinued operations before income taxes		1,278			158			1,436
Benefit from income taxes		(267	)		—			(267	)
Income from discontinued operations		1,545			158			1,703
Gain on disposal of discontinued operations (net of tax of $4,578)		25,203			—			25,203
Net income	$	94,872		$	1,972		$	96,844
Net income per common share from continuing operations:
Basic	$	0.37		$	0.01		$	0.38
Diluted	$	0.29		$	0.01		$	0.30
Net income per common share:
Basic	$	0.51		$	0.01		$	0.52
Diluted	$	0.41		$	0.01		$	0.42
Weighted average common share—basic		184,720						184,720
Weighted average common share—diluted		232,080						232,080

Schedule Of Condensed Consolidated Statements Of Comprehensive Income

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Net income	$	94,872		$	1,972		$	96,844
Other comprehensive income, net of tax:
Foreign currency translation reclassification adjustment included in net income		2,266			—			2,266
Unrealized gains on investments		15			—			15
Defined benefit pension and post-retirement plans:
Actuarial losses arising during period, net of tax of ($15), $15		(51	)		51			—
Settlement gain, net of tax of $35, ($35)		60			(60	)		—
Less Amortization included in net periodic pension and post-retirement costs:
Actuarial losses, net of tax of $11, ($11)		2,078			(2,078	)		—
Prior service costs, net of tax of $0		6			—			6
		2,093			(2,087	)		6
Other comprehensive income		4,374			(2,087	)		2,287
Comprehensive income	$	99,246		$	(115	)	$	99,131

Schedule Of Condensed Consolidated Statements Of Cash Flows

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Cash flows from operating activities:
Net income	$	94,872		$	1,972		$	96,844
Less: Income from discontinued operations		1,545			158			1,703
Less: Gain on disposal of discontinued operations		25,203			—			25,203
Income from continuing operations		68,124			1,814			69,938
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation		13,057			—			13,057
Amortization		12,442			(2,087	)		10,355
Stock-based compensation		7,464			—			7,464
Provision for excess and obsolete inventory		4,627			—			4,627
Other		618			—			618
Changes in operating assets and liabilities, net of businesses sold:
Accounts receivable		(17,498	)		—			(17,498	)
Inventories		(10,709	)		—			(10,709	)
Other assets		(2,539	)		273			(2,266	)
Deferred revenue and customer advances		(24,553	)		—			(24,553	)
Accounts payable and other accrued expenses		(26,014	)		—			(26,014	)
Retirement plan contributions		(1,176	)		—			(1,176	)
Net cash provided by continuing operations		23,843			—			23,843
Net cash used for discontinued operations		(4,225	)		—			(4,225	)
Net cash provided by operating activities		19,618			—			19,618
Net cash used for investing activities		(5,942	)		—			(5,942	)
Net cash provided by financing activities		8,854			—			8,854
Increase in cash and cash equivalents		22,530			—			22,530
Cash and cash equivalents at beginning of period		397,737			—			397,737
Cash and cash equivalents at end of period	$	420,267		$	—		$	420,267

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Financial Instruments And Derivatives (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Apr. 01, 2012		Dec. 31, 2011		Apr. 03, 2011	Dec. 31, 2010	Mar. 31, 2009
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, Carrying Value	$ 533,396		$ 573,736		$ 420,267	$ 397,737
Convertible debt, Carrying Value	159,373		156,098
Japan loan, Carrying Value							10,000
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, Carrying Value	361,942		412,493
Marketable securities, Carrying Value	208,735		180,909
Convertible debt, Carrying Value	159,373	[1]	156,098	[1]
Japan loan, Carrying Value	4,861		6,431
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, Fair Value	361,942		412,493
Marketable securities, Fair Value	208,735		180,909
Convertible debt, Fair Value	595,175	[1]	485,925	[1]
Japan loan, Fair Value	$ 4,861		$ 6,431

[1] The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion feature.

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Change In Accounting Principle (Schedule Of Condensed Consolidated Statements Of Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Change in Accounting Principle [Line Items]
Net income	$ 33,564	$ 96,844
Foreign currency translation reclassification adjustment included in net income		2,266
Unrealized gains on investments	278	15
Pension and post-retirement costs: Prior service costs, net of tax of $0		6
Defined benefit pension and post-retirement plans, total		6
Other comprehensive income	186	2,287
Comprehensive income	33,750	99,131
Originally Reported [Member]
Change in Accounting Principle [Line Items]
Net income		94,872
Foreign currency translation reclassification adjustment included in net income		2,266
Unrealized gains on investments		15
Defined benefit pension and post-retirement plans: Actuarial losses arising during period, net of tax of ($15), $15		(51)
Defined benefit pension and post-retirement plans: Actuarial losses tax portion		(15)
Defined benefit pension and post-retirement plans: Settlement gain, net of tax of $35, ($35)		60
Defined benefit pension and post-retirement plans: Settlement gain, tax portion		35
Pension and post-retirement costs: Actuarial losses, net of tax of $11, ($11)		2,078
Pension and post-retirement costs: Actuarial losses, tax portion		11
Pension and post-retirement costs: Prior service costs, net of tax of $0		6
Pension and post-retirement costs: Prior service costs, tax portion	0
Defined benefit pension and post-retirement plans, total		2,093
Other comprehensive income		4,374
Comprehensive income		99,246
Effect Of Accounting Change [Member]
Change in Accounting Principle [Line Items]
Net income		1,972
Defined benefit pension and post-retirement plans: Actuarial losses arising during period, net of tax of ($15), $15		51
Defined benefit pension and post-retirement plans: Actuarial losses tax portion		15
Defined benefit pension and post-retirement plans: Settlement gain, net of tax of $35, ($35)		(60)
Defined benefit pension and post-retirement plans: Settlement gain, tax portion		(35)
Pension and post-retirement costs: Actuarial losses, net of tax of $11, ($11)		(2,078)
Pension and post-retirement costs: Actuarial losses, tax portion		(11)
Defined benefit pension and post-retirement plans, total		(2,087)
Other comprehensive income		(2,087)
Comprehensive income		(115)
As Adjusted [Member]
Change in Accounting Principle [Line Items]
Net income		$ 96,844

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Condensed Consolidated Statements Of Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 03, 2011
Condensed Consolidated Statements Of Operations [Abstract]
Gain on disposal of discontinued operations, tax	$ 4,578

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Change In Accounting Principle

3 Months Ended

Apr. 01, 2012

Change In Accounting Principle [Abstract]

Change In Accounting Principle

C. Change in Accounting Principle

Effective January 1, 2012, Teradyne changed the method of recognizing actuarial gains and losses for its defined benefit pension plans and postretirement benefit plan and calculating the expected return on plan assets for its defined benefit pension plans. Historically, Teradyne recognized net actuarial gains and losses in accumulated other comprehensive income within shareholders' equity on the consolidated balance sheets on an annual basis and amortized them into operating results over the average remaining years of service of the plan participants, to the extent such gains and losses were outside of a corridor. In addition, Teradyne, historically, calculated the expected return on plan assets using a calculated market-related value of plan assets. Teradyne has elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne has also elected to calculate the expected return on plan assets using the fair value of the plan assets.

While the previous method of recognizing pension and other postretirement benefit expense was considered acceptable, Teradyne believes that this new method is preferable as it eliminates the delay in recognizing gains and losses in its operating results and it will improve the transparency by faster recognition of the effects of economic and interest rate trends on plan obligations and investments. These actuarial gains and losses are generally measured annually as of December 31 and, accordingly, will be recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. In accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections, all prior periods presented in this Quarterly Report on Form 10-Q have been adjusted to apply the new accounting method retrospectively. This accounting change did not impact the financial position of the reportable segments.

Had these changes not been made, net income for the three months ended April 1, 2012 would have been $29.7 million compared to the $33.6 million actually recorded. Diluted earnings per share would have been $0.13 compared to $0.15.

The effects of the change in accounting principle on the condensed consolidated financial statements for 2011 are presented below. We have condensed the comparative financial statements for financial statement line items that were not affected by the change in accounting principle.

Condensed Consolidated Balance Sheets

	December 31, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Assets:
Total assets	$	2,188,639			—		$	2,188,639
Liabilities:
Total liabilities		683,579			—			683,579
Shareholders' Equity:
Common stock		22,948			—			22,948
Additional paid-in capital		1,293,130			—			1,293,130
Accumulated other comprehensive (loss) income		(129,875	)		134,621			4,746
Retained earnings		318,857			(134,621	)		184,236
Total shareholders' equity		1,505,060			—			1,505,060
Total liabilities and shareholders' equity	$	2,188,639			—		$	2,188,639

Condensed Consolidated Statements of Operations

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands, except per share amounts)
Net revenues		377,161			—			377,161
Cost of revenues		184,752			(483	)		184,269
Gross profit		192,409			483			192,892
Operating expenses:
Engineering and development		47,977			(833	)		47,144
Selling and administrative		58,229			(498	)		57,731
Acquired intangible asset amortization		7,291			—			7,291
Restructuring and other		413			—			413
Total operating expenses		113,910			(1,331	)		112,579
Income from operations		78,499			1,814			80,313
Interest income		1,287			—			1,287
Interest expense and other, net		(6,176	)		—			(6,176	)
Income from continuing operations before income taxes		73,610			1,814			75,424
Provision for income taxes		5,486			—			5,486
Income from continuing operations		68,124			1,814			69,938
Income from discontinued operations before income taxes		1,278			158			1,436
Benefit from income taxes		(267	)		—			(267	)
Income from discontinued operations		1,545			158			1,703
Gain on disposal of discontinued operations (net of tax of $4,578)		25,203			—			25,203
Net income	$	94,872		$	1,972		$	96,844
Net income per common share from continuing operations:
Basic	$	0.37		$	0.01		$	0.38
Diluted	$	0.29		$	0.01		$	0.30
Net income per common share:
Basic	$	0.51		$	0.01		$	0.52
Diluted	$	0.41		$	0.01		$	0.42
Weighted average common share—basic		184,720						184,720
Weighted average common share—diluted		232,080						232,080

Condensed Consolidated Statements of Comprehensive Income

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Net income	$	94,872		$	1,972		$	96,844
Other comprehensive income, net of tax:
Foreign currency translation reclassification adjustment included in net income		2,266			—			2,266
Unrealized gains on investments		15			—			15
Defined benefit pension and post-retirement plans:
Actuarial losses arising during period, net of tax of ($15), $15		(51	)		51			—
Settlement gain, net of tax of $35, ($35)		60			(60	)		—
Less Amortization included in net periodic pension and post-retirement costs:
Actuarial losses, net of tax of $11, ($11)		2,078			(2,078	)		—
Prior service costs, net of tax of $0		6			—			6
		2,093			(2,087	)		6
Other comprehensive income		4,374			(2,087	)		2,287
Comprehensive income	$	99,246		$	(115	)	$	99,131

Condensed Consolidated Statements of Cash Flows

	For the Three Months Ended April 3, 2011
	Originally Reported			Effect of Accounting Change			As Adjusted
	(in thousands)
Cash flows from operating activities:
Net income	$	94,872		$	1,972		$	96,844
Less: Income from discontinued operations		1,545			158			1,703
Less: Gain on disposal of discontinued operations		25,203			—			25,203
Income from continuing operations		68,124			1,814			69,938
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation		13,057			—			13,057
Amortization		12,442			(2,087	)		10,355
Stock-based compensation		7,464			—			7,464
Provision for excess and obsolete inventory		4,627			—			4,627
Other		618			—			618
Changes in operating assets and liabilities, net of businesses sold:
Accounts receivable		(17,498	)		—			(17,498	)
Inventories		(10,709	)		—			(10,709	)
Other assets		(2,539	)		273			(2,266	)
Deferred revenue and customer advances		(24,553	)		—			(24,553	)
Accounts payable and other accrued expenses		(26,014	)		—			(26,014	)
Retirement plan contributions		(1,176	)		—			(1,176	)
Net cash provided by continuing operations		23,843			—			23,843
Net cash used for discontinued operations		(4,225	)		—			(4,225	)
Net cash provided by operating activities		19,618			—			19,618
Net cash used for investing activities		(5,942	)		—			(5,942	)
Net cash provided by financing activities		8,854			—			8,854
Increase in cash and cash equivalents		22,530			—			22,530
Cash and cash equivalents at beginning of period		397,737			—			397,737
Cash and cash equivalents at end of period	$	420,267		$	—		$	420,267

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Product Warranty (Schedule Of Extended Product Warranty) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Product Warranty [Abstract]
Balance at beginning of period	$ 12,742	$ 8,972
Deferral of new extended warranty revenue	2,347	1,939
Recognition of extended warranty deferred revenue	(2,162)	(1,041)
Balance at end of period	$ 12,927	$ 9,870

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Segment Information (Schedule Of Segment Reporting Information By Segment Charges) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Semiconductor Test [Member]
Segment Reporting Information [Line Items]
Cost of revenues-provision for excess and obsolete inventory	$ 212	$ 4,442
Restructuring and other, net		891
Total	212	5,333
Systems Test Group [Member]
Segment Reporting Information [Line Items]
Cost of revenues-provision for excess and obsolete inventory	889	185
Restructuring and other, net		(246)
Total	889	(61)
Wireless Test [Member]
Segment Reporting Information [Line Items]
Cost of revenues-provision for excess and obsolete inventory	473
Cost of revenues-inventory step-up	4,871
Total	5,344
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Restructuring and other, net	(1,825)	(232)
Total	$ (1,825)	$ (232)

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Discontinued Operations (Tables)

3 Months Ended

Apr. 01, 2012

Discontinued Operations [Abstract]

Schedule Of Net Revenues And Income From Discontinued Operations

	April 3, 2011
	(in thousands)
Net revenues	$	9,086
Income from discontinued operations before income taxes	$	1,436
Gain from disposal of discontinued operations before income taxes		29,781
Income tax provision		4,311
Income from discontinued operations	$	26,906

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Change In Accounting Principle (Narrative) (Details) (USD $)	3 Months Ended
	Apr. 01, 2012	Apr. 03, 2011
Change In Accounting Principle [Abstract]
Net income before accounting changes	$ 29,700,000
Net income	$ 33,564,000	$ 96,844,000
Earnings per share diluted before accounting charges	$ 0.13
Diluted	$ 0.15	$ 0.42

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Restructuring And Other, Net

3 Months Ended

Apr. 01, 2012

Restructuring And Other, Net [Abstract]

Restructuring And Other, Net

M. Restructuring and Other, Net

Other

During the three months ended April 1, 2012, Teradyne recorded a $1.9 million fair value adjustment to decrease the LitePoint acquisition contingent consideration. As of April 1, 2012, the estimated undiscounted range of outcomes for the contingent consideration is $54.0 million to $66.0 million. The decrease in the range from December 31, 2011 is due to the $5.8 million contingent consideration payment during the three months ended April 1, 2012 and the $1.9 million fair value decrease.

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 remaining accrual for lease payments on vacated facilities of $1.7 million 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 $0.8 million against the lease accruals over the next twelve months. Teradyne's future lease commitments are net of expected sublease income of $0.4 million as of April 1, 2012. The table below represents activity related to these actions.

	Severance and Benefits			Facility Exit Costs			Total
	(in thousands)
Pre-2011 Activities
Balance at December 31, 2010	$	712		$	3,263		$	3,975
Provision		117			—			117
Change in estimate		155			(485	)		(330	)
Cash payments		(984	)		(916	)		(1,900	)
Balance at December 31, 2011		—			1,862			1,862
Cash payments		—			(189	)		(189	)
Balance at April 1, 2012	$	—		$	1,673		$	1,673
2011 Activities
Q1 2011 Activity:
Provision	$	572		$	—		$	572
Cash payments		(476	)		—			(476	)
Balance at December 31, 2011		96			—			96
Cash payments		(96	)		—			(96	)
Balance at April 1, 2012	$	—		$	—		$	—
Q2 2011 Activity:
Provision	$	344		$	—		$	344
Cash payments		(115	)		—			(115	)
Balance at December 31, 2011		229			—			229
Cash payments		(229	)		—			(229	)
Balance at April 1, 2012	$	—		$	—		$	—
Balance at April 1, 2012	$	—		$	1,673		$	1,673

During the three months ended April 3, 2011, Teradyne recorded the following restructuring charges:

Q1 2011 Actions:

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

Q2 2010 Actions:

• $0.2 million related to a change in the estimated severance benefits related to headcount reductions in Semiconductor Test.

Q4 2010 Actions:

• $0.1 million of severance charges related to headcount reductions in Semiconductor Test.

Pre-2011 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, and the North Reading, MA facility in Semiconductor Test and System Test Group.