N. RESTRUCTURING AND OTHER

Other

During the year ended December 31, 2012, due to a decrease in specified new product revenue through the December 31, 2012 earn-out period end date, Teradyne recorded an $8.8 million fair value adjustment to decrease the LitePoint acquisition contingent consideration. The $68.5 million decrease in the contingent consideration liability from December 31, 2011 is due to $59.7 million in payments and an $8.8 million fair value decrease.

During the year ended December 31, 2011, Teradyne recorded $5.8 million of other charges in which $4.6 million related to acquisition costs and $1.2 million related to a non-U.S pension settlement.

During the year ended December 31, 2010, Teradyne had $3.0 million of other gains related to non-U.S pension settlements.

Restructuring

In response to a downturn in the industry in 2008 and 2009, Teradyne initiated restructuring activities across its Semiconductor Test and Systems Test Group segments to reduce costs, principally through headcount reductions and facility consolidations. The remaining accrual for severance and benefits of $0.2 million is reflected in the accrued employees’ compensation and withholdings account on the balance sheet and is expected to be paid by June 2013. The remaining accrual for lease payments on vacated facilities of $1.1 million is reflected in the other accrued liabilities account and is expected to be paid over the next twelve months. As of December 31, 2012, Teradyne has subleased approximately 37% of its unoccupied space.


	Severance and Benefits			Facility Exit Costs			Total
	(in thousands)
Pre-2010 Activities
Balance at December 31, 2009	$	2,905		$	10,056		$	12,961
Change in estimate		240			(2,672	)		(2,432	)
Cash payments		(3,145	)		(4,121	)		(7,266	)

Balance at December 31, 2010		—			3,263			3,263
Change in estimate		—			(485	)		(485	)
Cash payments		—			(916	)		(916	)

Balance at December 31, 2011		—			1,862			1,862
Cash payments		—			(778	)		(778	)

Balance at December 31, 2012	$	—		$	1,084		$	1,084

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

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

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

Balance at December 31, 2010		488			—			488

Change in estimate		202			—			202
Cash payments		(690	)		—			(690	)

Balance at December 31, 2011	$	—		$	—		$	—

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

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

Balance at December 31, 2011	$	—		$	—		$	—

*Q4 2010 Activity:*
Provision	$	98		$	—		$	98

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

Balance at December 31, 2011	$	—		$	—		$	—

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 December 31, 2012	$	—		$	—		$	—

*Q2 2011 Activities:*
Provision	$	344		$	—		$	344
Cash payments		(115	)		—			(115	)

Balance at December 31, 2011		229			—			229
Cash payments		(229	)		—			(229	)

Balance at December 31, 2012	$	—		$	—		$	—

2012 Activities
*Q2 2012 Activities:*
Provision	$	286		$	—		$	286
Change in estimate		(4	)		—			(4	)
Cash payments		(282	)		—			(282	)

Balance at December 31, 2012	$	—		$	—		$	—

*Q3 2012 Activity:*
Provision	$	687		$	—		$	687
Cash payments		(444	)		—			(444	)

Balance at December 31, 2012	$	243		$	—		$	243

Balance at December 31, 2012	$	243		$	1,084		$	1,327

During the year ended December 31, 2012, Teradyne recorded the following restructuring activities:

Q2 2012 Actions:

–

$0.3 million of severance charges related to headcount reductions of 10 people in Semiconductor Test.

Q3 2012 Actions:

–

$0.7 million of severance charges related to headcount reductions of 9 people, of which $0.5 million and 7 people were in Systems Test Group and $0.2 million and 2 people in Wireless Test.

During the year ended December 31, 2011, Teradyne recorded the following restructuring activities:

Q1 2011 Actions:

–

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

Q2 2011 Actions:

–

$0.3 million of severance charges related to headcount reductions of 2 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-2010 Actions:

–

$(0.5) million credit related to changes in the estimated exit costs related to the Westford, MA and Poway, CA facilities in Systems Test Group, and the North Reading, MA facility in Semiconductor Test and Systems Test Group.

During the year ended December 31, 2010, Teradyne recorded the following restructuring activities:

Q1 2010 Actions:

–

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

Q2 2010 Actions:

–

$0.9 million of severance charges related to headcount reductions of approximately 6 people in Systems Test Group.

Q3 2010 Actions:

–

$0.4 million of severance charges related to headcount reductions of approximately 10 people in Systems Test Group.

Q4 2010 Actions:

–

$0.1 million of severance charges related to the headcount reduction of 1 person in Systems Test Group.

Pre-2010 Actions:

–

$(2.7) million credit related to the early exit of previously impaired leased facilities in Westford, Massachusetts.

–

$0.5 million and $(0.2) million related to a change in the estimated severance benefits related to headcount reduction activities in Semiconductor Test and Systems Test Group, respectively.