Restructuring And Other, Net

3 Months Ended

Apr. 01, 2012

Restructuring And Other, Net [Abstract]

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.

- Definition

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

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