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 June 30, 2013

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 August 2, 2013 was 191,459,202 shares.

TERADYNE, INC.

INDEX

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets as of June 30, 2013 and December 31, 2012		1
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2013 and July 1, 2012		2
	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2013 and July 1, 2012		3
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and July 1, 2012		4
	Notes to Condensed Consolidated Financial Statements		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		32
Item 4.	Controls and Procedures		32
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		33
Item 1A.	Risk Factors		33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		33
Item 4.	Mine Safety Disclosures		34
Item 6.	Exhibits		35

PART I

Item 1: Financial Statements

TERADYNE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30, 2013		December 31, 2012
	(in thousands, except per share information)
ASSETS
Current assets:
Cash and cash equivalents	$	227,601	$	338,920
Marketable securities		501,148		431,516
Accounts receivable, less allowance for doubtful accounts of $3,664 and $4,118 at June 30, 2013 and December 31, 2012, respectively		228,208		153,423
Inventories:
Parts		71,552		89,598
Assemblies in process		25,124		32,303
Finished goods		31,528		17,509
		128,204		139,410
Deferred tax assets		83,789		77,305
Prepayments and other current assets		113,253		95,487
Total current assets		1,282,203		1,236,061
Net property, plant and equipment		264,876		265,782
Long-term marketable securities		302,846		235,872
Other assets		19,051		20,209
Retirement plans assets		4,194		3,282
Intangible assets, net		283,728		318,867
Goodwill		349,272		349,272
Total assets	$	2,506,170	$	2,429,345
LIABILITIES
Current liabilities:
Accounts payable	$	67,125	$	58,324
Accrued employees’ compensation and withholdings		73,756		86,264
Deferred revenue and customer advances		76,254		81,357
Other accrued liabilities		54,684		57,249
Accrued income taxes		13,686		12,306
Current debt		179,565		2,328
Total current liabilities		465,070		297,828
Long-term deferred revenue and customer advances		18,240		16,227
Retirement plans liabilities		94,004		94,373
Deferred tax liabilities		41,429		50,201
Long-term other accrued liabilities		20,934		21,302
Long-term debt		—		171,059
Total liabilities		639,677		650,990
Commitments and contingencies (Note N)
SHAREHOLDERS’ EQUITY
Common stock, $0.125 par value, 1,000,000 shares authorized, 190,721 shares and 187,908 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively		23,840		23,488
Additional paid-in capital		1,364,944		1,347,762
Accumulated other comprehensive income		3,279		5,820
Retained earnings		474,430		401,285
Total shareholders’ equity		1,866,493		1,778,355
Total liabilities and shareholders’ equity	$	2,506,170	$	2,429,345

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, 2012, are an integral part of the condensed consolidated financial statements.

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TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands, except per share amount)
Net revenues:
Products	$	363,087		$	480,578		$	577,387		$	811,469
Services		65,802			67,706			131,869			133,483
Total net revenues		428,889			548,284			709,256			944,952
Cost of revenues:
Cost of products		158,411			206,498			255,204			380,499
Cost of services		29,245			32,280			59,402			64,021
Total cost of revenues		187,656			238,778			314,606			444,520
Gross profit		241,233			309,506			394,650			500,432
Operating expenses:
Engineering and development		67,773			67,834			130,524			129,113
Selling and administrative		69,230			72,064			137,120			138,697
Acquired intangible assets amortization		18,063			18,429			36,099			36,858
Restructuring and other		259			(6,262	)		591			(8,087	)
Total operating expenses		155,325			152,065			304,334			296,581
Income from operations		85,908			157,441			90,316			203,851
Interest income		903			874			1,975			1,767
Interest expense and other		(6,454	)		(6,323	)		(13,360	)		(12,382	)
Income before income taxes		80,357			151,992			78,931			193,236
Income tax provision		13,801			40,605			5,786			48,285
Net income	$	66,556		$	111,387		$	73,145		$	144,951
Net income per common share:
Basic	$	0.35		$	0.60		$	0.38		$	0.78
Diluted	$	0.28		$	0.49		$	0.31		$	0.63
Weighted average common share—basic		190,569			186,573			190,128			186,205
Weighted average common share—diluted		234,909			229,646			234,833			230,399

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, 2012, are an integral part of the condensed consolidated financial statements.

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TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Net income	$	66,556		$	111,387		$	73,145		$	144,951
Other comprehensive income:
Available-for-sale marketable securities:
Net unrealized (losses) gains on marketable securities arising during period		(2,268	)		452			(1,905	)		1,196
Less: Reclassification adjustment for net gains included in net income		(143	)		(24	)		(419	)		(490	)
Net change		(2,411	)		428			(2,324	)		706
Defined benefit pension and post-retirement plans:
Amortization of prior service net benefit included in net periodic pension and post-retirement (benefit) costs		(109	)		(92	)		(217	)		(183	)
Other comprehensive (loss) income		(2,520	)		336			(2,541	)		523
Comprehensive income	$	64,036		$	111,723		$	70,604		$	145,474

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, 2012, are an integral part of the condensed consolidated financial statements.

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TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended
	June 30,      2013			July 1,      2012
	(in thousands)
Cash flows from operating activities:
Net income	$	73,145		$	144,951
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		27,552			25,578
Amortization		43,925			43,744
Stock-based compensation		18,077			21,396
Provision for excess and obsolete inventory		5,775			10,927
Deferred taxes		(15,230	)		15,937
Non cash charge for the sale of inventories revalued at the date of acquisition		—			6,089
Contingent consideration adjustment		—			(8,373	)
Tax benefit related to stock options and restricted stock units		(1,584	)		(7,600	)
Retirement plans actuarial (gains) losses		(1,359	)		3,054
Impairment loss on property, plant and equipment		1,074			—
Other		1,077			(471	)
Changes in operating assets and liabilities:
Accounts receivable		(74,785	)		(216,794	)
Inventories		26,373			21,446
Prepayments and other assets		(17,277	)		5,027
Accounts payable and other accrued expenses		(15,149	)		27,140
Deferred revenue and customer advances		(3,090	)		(6,198	)
Retirement plans contributions		(2,511	)		(2,550	)
Accrued income taxes		2,964			29,958
Net cash provided by operating activities		68,977			113,261
Cash flows from investing activities:
Purchases of property, plant and equipment		(50,798	)		(57,804	)
Purchases of marketable securities		(458,070	)		(153,871	)
Proceeds from maturities of marketable securities		268,546			86,192
Proceeds from sales of marketable securities		50,255			10,028
Net cash used for investing activities		(190,067	)		(115,455	)
Cash flows from financing activities:
Issuance of common stock under employee stock option and stock purchase plans		9,638			16,984
Tax benefit related to stock options and restricted stock units		1,584			7,600
Payments of long-term debt		(1,063	)		(1,246	)
Payments of contingent consideration		(388	)		(5,824	)
Net cash provided by financing activities		9,771			17,514
(Decrease) increase in cash and cash equivalents		(111,319	)		15,320
Cash and cash equivalents at beginning of period		338,920			573,736
Cash and cash equivalents at end of period	$	227,601		$	589,056

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, 2012, are an integral part of the condensed consolidated financial statements.

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TERADYNE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

A. The Company

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

• semiconductor test (“Semiconductor Test”) systems;

• wireless test (“Wireless Test”) systems; and

• 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”).

B. Accounting Policies

Basis of Presentation

The condensed consolidated interim financial statements include the accounts of Teradyne and its wholly-owned 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, 2012 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 U.S. Security and Exchange Commission (“SEC”) on March 1, 2013, for the year ended December 31, 2012.

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. Recently Issued Accounting Pronouncements

In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This ASU is intended to enhance the understanding of the effects of netting arrangements on an entity’s financial statements, including financial instruments and derivative instruments that are either offset or subject to a master netting arrangement. The scope of this ASU includes derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing and lending arrangements. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. Teradyne adopted this ASU effective January 1, 2013. See Note D “Financial Instruments and Derivatives.”

In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” amending the disclosure requirements regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The amendment does not change the current requirement for reporting net income or other comprehensive income, but requires

5

additional disclosures about significant amounts reclassified out of accumulated other comprehensive income including the effect of the reclassification on the related statement of operations line items. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. Teradyne adopted this amendment effective January 1, 2013. See Note I “Accumulated Other Comprehensive Income.”

On July 18, 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Under this ASU, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by unrecognized tax benefits. The provisions of this ASU are effective for interim and annual periods beginning on or after December 15, 2013. Teradyne does not expect this ASU to have a material impact on its financial position or results of operations.

D. 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 and six months ended June 30, 2013 and July 1, 2012. 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.

Most of Teradyne’s fixed income securities are classified as Level 2, with the exception of U.S. Treasury securities and investments in equity and debt mutual funds, which are classified as Level 1, and contingent consideration, which is classified as Level 3. The majority of Level 2 securities are priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities.

There were no realized losses recorded in the three and six months ended June 30, 2013 and July 1, 2012. Realized gains recorded in the three and six months ended June 30, 2013 were $0.1 million and $0.3 million, respectively. Realized gains recorded in the three and six months ended July 1, 2012 were $0.3 million and $0.6 million, respectively. Realized gains are included in interest income.

During the six months ended June 30, 2013 and July 1, 2012, there were no transfers in or out of Level 1, Level 2 or Level 3 financial instruments.

6

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 June 30, 2013 and December 31, 2012.

	June 30, 2013
	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
Cash	$	115,442	$	—	$	—	$	115,442
Cash equivalents		107,988		4,171		—		112,159
Available-for-sale securities:
U.S. Treasury securities		382,871		—		—		382,871
U.S. government agency securities		—		261,598		—		261,598
Commercial paper		—		97,667		—		97,667
Corporate debt securities		—		50,161		—		50,161
Equity and debt mutual funds		11,360		—		—		11,360
Certificates of deposit and time deposits		—		257		—		257
Non-U.S. government securities		—		80		—		80
Total		617,661		413,934		—		1,031,595
Derivatives		—		7		—		7
Total	$	617,661	$	413,941	$	—	$	1,031,602

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	223,430	$	4,171	$	—	$	227,601
Marketable securities		289,230		211,918		—		501,148
Long-term marketable securities		105,001		197,845		—		302,846
Prepayments and other current assets		—		7		—		7
	$	617,661	$	413,941	$	—	$	1,031,602

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	December 31, 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
Cash	$	139,354	$	—	$	—	$	139,354
Cash equivalents		183,039		16,527		—		199,566
Available-for-sale securities:
U.S. Treasury securities		312,116		—		—		312,116
U.S. government agency securities		—		217,655		—		217,655
Commercial paper		—		70,434		—		70,434
Corporate debt securities		—		55,755		—		55,755
Equity and debt mutual funds		9,717		—		—		9,717
Certificates of deposit and time deposits		—		1,627		—		1,627
Non-U.S. government securities		—		84		—		84
Total		644,226		362,082		—		1,006,308
Derivatives		—		121		—		121
Total	$	644,226	$	362,203	$	—	$	1,006,429
Liabilities
Contingent consideration	$	—	$	—	$	388	$	388
Total	$	—	$	—	$	388	$	388

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	322,393	$	16,527	$	—	$	338,920
Marketable securities		239,192		192,324		—		431,516
Long-term marketable securities		82,641		153,231		—		235,872
Prepayments and other current assets		—		121		—		121
	$	644,226	$	362,203	$	—	$	1,006,429
Liabilities
Other accrued liabilities	$	—	$	—	$	388	$	388
	$	—	$	—	$	388	$	388

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Changes in the fair value of Level 3 contingent consideration for the three and six months ended June 30, 2013 were as follows:

	Contingent consideration
	(in thousands)
Balance at December 31, 2012	$	388
Payments		(313	)
Balance at March 31, 2013		75
Payments		(75	)
Balance at June 30, 2013	$	—

The carrying amounts and fair values of financial instruments at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Cash and cash equivalents	$	227,601	$	227,601	$	338,920	$	338,920
Marketable securities		803,994		803,994		667,388		667,388
Convertible debt(1)		177,532		610,726		169,896		589,000
Japan loan		2,033		2,033		3,491		3,491

(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.

The following tables summarize the composition of available-for-sale marketable securities at June 30, 2013 and December 31, 2012:

	June 30, 2013
	Available-for-Sale									Fair Market Value of Investments with  Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
U.S. Treasury securities	$	382,884	$	144	$	(157	)	$	382,871	$	166,301
U.S. government agency securities		261,870		129		(401	)		261,598		130,310
Commercial paper		97,660		14		(7	)		97,667		18,722
Corporate debt securities		50,043		1,032		(914	)		50,161		11,926
Equity and debt mutual funds		9,761		1,647		(48	)		11,360		892
Certificates of deposit and time deposits		257		—		—			257		—
Non-U.S. government securities		80		—		—			80		—
	$	802,555	$	2,966	$	(1,527	)	$	803,994	$	328,151

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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)
Marketable securities	$	501,007	$	170	$	(29	)	$	501,148	$	135,029
Long-term marketable securities		301,548		2,796		(1,498	)		302,846		193,122
	$	802,555	$	2,966	$	(1,527	)	$	803,994	$	328,151

	December 31, 2012
	Available-for-Sale									Fair Market Value of Investments with  Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
U.S. Treasury securities	$	311,915	$	216	$	(15	)	$	312,116	$	1,018
U.S. government agency securities		217,396		262		(3	)		217,655		9,018
Commercial paper		70,431		9		(6	)		70,434		25,209
Corporate debt securities		53,405		2,414		(64	)		55,755		23,255
Equity and debt mutual funds		8,767		961		(11	)		9,717		600
Certificates of deposit and time deposits		1,627		—		—			1,627		—
Non-U.S. government securities		84		—		—			84		—
	$	663,625	$	3,862	$	(99	)	$	667,388	$	59,100

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses
	(in thousands)
Marketable securities	$	431,324	$	203	$	(11	)	$	431,516	$	41,110
Long-term marketable securities		232,301		3,659		(88	)		235,872		17,990
	$	663,625	$	3,862	$	(99	)	$	667,388	$	59,100

As of June 30, 2013, the fair market value of marketable securities with unrealized losses totaled $328.2 million. Of this value, $2.1 million had unrealized losses greater than one year and $326.1 million had unrealized losses less than one year. As of December 31, 2012, the fair market value of marketable securities with unrealized losses totaled $59.1 million. There were no unrealized losses greater than one year.

The contractual maturities of available-for-sale marketable securities at June 30, 2013 were as follows:

	June 30, 2013
	Cost		Fair Market Value
	(in thousands)
Due within one year	$	501,007	$	501,148
Due after 1 year through 5 years		275,543		276,815
Due after 5 years through 10 years		2,968		3,024
Due after 10 years		23,037		23,007
Total	$	802,555	$	803,994

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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 $54.0 million and $64.1 million at June 30, 2013 and December 31, 2012, respectively.

The following table summarizes the fair value of derivative instruments at June 30, 2013 and December 31, 2012.

	Balance Sheet Location		June 30, 2013		December 31, 2012
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Prepayments and other current assets	$	7	$	121
			$	7	$	121

Teradyne had no offsetting foreign exchange contracts at June 30, 2013 and December 31, 2012.

The following table summarizes the effect of derivative instruments recognized in the statement of operations during the three and six months ended June 30, 2013 and July 1, 2012. The table does not reflect the corresponding (losses) gains from the remeasurement of the monetary assets and liabilities denominated in foreign currencies, which were $(1.8) million, $2.5 million, $(4.6) million, and $(0.4) million, respectively for the three and six months ended June 30, 2013 and July 1, 2012.

	Location of Gains (Losses) Recognized in Statement of Operations		For the Three Months Ended					For the Six Months Ended
			June 30, 2013		July 1, 2012			June 30, 2013		July 1, 2012
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Interest expense and other	$	1,818	$	(2,360	)	$	4,067	$	520
			$	1,818	$	(2,360	)	$	4,067	$	520

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

E. 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 is denominated in Japanese Yen). The loan has a term of 5 years and a fixed interest rate of 0.8%. Approximately $6.0 million of

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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 June 30, 2013, the outstanding loan principal of approximately $2.0 million is included in current 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, at the option of the holder, 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 including but not limited to Teradyne issuing a cash or stock dividend or effecting a stock split.

During the three months ended June 30, 2013, the following circumstance occurred that allows holders to convert their Notes at their option prior to December 15, 2013: 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 August 9, 2013, one holder exercised the option to convert two thousand dollars worth of Notes which Teradyne settled in cash.

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.

On March 31, 2009, 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. 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 current debt in the balance sheet at June 30, 2013. The tables below represent the components of Teradyne’s convertible senior notes:

	June 30, 2013		December 31, 2012
	(in thousands)
Debt principal	$	189,998	$	190,000
Unamortized debt discount		12,466		20,104
Net carrying amount of the convertible debt	$	177,532	$	169,896

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The interest expense on Teradyne’s convertible senior notes for the three and six months ended June 30, 2013 and July 1, 2012 was as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Contractual interest expense	$	2,137	$	2,138	$	4,274	$	4,299
Amortization of the discount component and debt issue fees		4,087		3,592		8,044		7,071
Total interest expense on the convertible debt	$	6,224	$	5,730	$	12,318	$	11,370

As of June 30, 2013, the unamortized discount was $12.5 million, which will be amortized over the next nine months, and the carrying amount of the equity component was $63.4 million. As of June 30, 2013, 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 $609.7 million.

F. 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.

	June 30, 2013		December 31, 2012
	(in thousands)
Maintenance, training and extended warranty	$	56,499	$	51,198
Customer advances		29,025		39,613
Undelivered elements		8,970		6,773
Total deferred revenue and customer advances	$	94,494	$	97,584

G. 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 warranty balance below is included in other accrued liabilities.

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Balance at beginning of period	$	7,075		$	8,722		$	9,786		$	8,154
Accruals for warranties issued during the period		3,684			5,649			5,107			9,425
Adjustments related to pre-existing warranties		(869	)		403			(1,798	)		143
Settlements made during the period		(2,539	)		(3,727	)		(5,744	)		(6,675	)
Balance at end of period	$	7,351		$	11,047		$	7,351		$	11,047

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

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Balance at beginning of period	$	28,599		$	12,927		$	26,987		$	12,742
Deferral of new extended warranty revenue		8,734			9,935			12,205			12,282
Recognition of extended warranty deferred revenue		(2,479	)		(2,108	)		(4,338	)		(4,270	)
Balance at end of period	$	34,854		$	20,754		$	34,854		$	20,754

H. Stock-Based Compensation

Restricted stock unit awards granted to employees vest in equal installments over four years. A portion of restricted stock unit awards granted to executive officers is subject to time-based vesting and a portion 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 will be forfeited. Stock options vest in equal installments over four years, and have a term of seven years from the date of grant.

During the six months ended June 30, 2013, Teradyne granted 1.9 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.60 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.09.

During the six months ended July 1, 2012, Teradyne granted 1.6 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.83 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.85.

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

	For the Six Months Ended
	June 30, 2013			July 1, 2012
Expected life (years)		4.0			3.5
Interest rate		0.6	%		0.4	%
Volatility-historical		46.8	%		56.0	%
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.

Effective January 1, 2013, the price paid by employees for Teradyne’s common stock purchased through the employee stock purchase plan is equal to 85% of the stock price on the last business day of the purchase period.

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During 2012, the price paid by employees for Teradyne’s common stock purchased through the employee stock purchase plan was equal to 85% of the lower of the stock price on the first or last business day of the purchase period.

The weighted-average fair value of employee stock purchase rights granted in the six months ended July 1, 2012 was $4.09. The fair value of the employees’ purchase rights granted in the six months ended July 1, 2012 was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Six Months Ended July 1, 2012
Expected life (years)		0.5
Interest rate		0.06	%
Volatility-historical		52.6	%
Dividend yield		0.0	%

I. Accumulated Other Comprehensive Income

At June 30, 2013 and December 31, 2012, the accumulated other comprehensive income balances were as follows:

	June 30, 2013		December 31, 2012
	(in thousands)
Retirement plans prior service benefit, net of tax of $(125) and $(125)	$	2,678	$	2,895
Unrealized gains on marketable securities, net of tax of $835 and $835		601		2,925
Total accumulated other comprehensive income	$	3,279	$	5,820

Reclassifications out of accumulated other comprehensive income to the statement of operations for the three and six months ended June 30, 2013 and July 1, 2012, were as follows:

Details about Accumulated Other Comprehensive Income Components	For the Three Months Ended				For the Six Months Ended				Affected Line Item in the Statements of Operations
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
	(in thousands)				(in thousands)
Available-for-sale marketable securities
Unrealized gains	$	143	$	24	$	419	$	490		Interest income
	$	143	$	24	$	419	$	490		Net income
Amortization of defined benefit pension and postretirement plans
Prior service benefit	$	109	$	92	$	217	$	183		(a)
	$	109	$	92	$	217	$	183		(a)
Total reclassifications	$	252	$	116	$	636	$	673		Net income

(a) The amortization of prior service benefit is included in the computation of net periodic pension and postretirement benefit costs; see Note M “Retirement Plans.”

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J. Intangible Assets

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

	June 30, 2013
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,515	$	168,339	$	190,176		6.3 years
Customer relationships and service and software maintenance contracts		144,971		72,581		72,390		8.0 years
Trade names and trademarks		33,840		12,678		21,162		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	538,326	$	254,598	$	283,728		7.0 years

	December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	357,555	$	143,126	$	214,429		6.3 years
Customer relationships and service and software maintenance contracts		144,971		63,464		81,507		8.0 years
Trade names and trademarks		33,840		10,909		22,931		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,366	$	218,499	$	318,867		7.0 years

Aggregate intangible asset amortization expense was $18.1 million and $36.1 million, respectively, for the three and six months ended June 30, 2013 and $18.4 million and $36.9 million, respectively, for the three and six months ended July 1, 2012. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:

Year	Amortization Expense
	(in thousands)
2013 (remainder)	$	36,113
2014		69,208
2015		52,458
2016		52,458
2017		46,299

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K. 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				For the Six Months Ended
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	66,556	$	111,387	$	73,145	$	144,951
Weighted average common shares-basic		190,569		186,573		190,128		186,205
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes(1)		23,266		22,301		23,326		22,651
Convertible note hedge warrant shares(2)		18,689		17,340		18,774		17,829
Restricted stock units		772		1,171		947		1,405
Stock options		1,554		2,160		1,615		2,247
Employee stock purchase rights		59		101		43		62
Dilutive potential common shares		44,340		43,073		44,705		44,194
Weighted average common shares-diluted		234,909		229,646		234,833		230,399
Net income per common share-basic	$	0.35	$	0.60	$	0.38	$	0.78
Net income per common share-diluted	$	0.28	$	0.49	$	0.31	$	0.63

(1) Incremental shares from assumed conversion of the convertible notes for the three and six months ended June 30, 2013 and July 1, 2012 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 the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

(2) Convertible note hedge warrant shares for the three and six months ended June 30, 2013 and July 1, 2012 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 the 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 and six months ended June 30, 2013 excludes the effect of the potential exercise of stock options to purchase approximately 0.5 million shares because the effect would have been anti-dilutive.

The computation of diluted net income per common share for the three and six months ended July 1, 2012 excludes the effect of the potential exercise of stock options to purchase approximately 0.3 million shares and restricted stock units of 0.1 million because the effect would have been anti-dilutive.

With respect to 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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L. Restructuring and Other

Other

During the three and six months ended July 1, 2012, due to a decrease in specified new product revenue through the December 31, 2012 earn-out period end date, Teradyne recorded a $6.5 million and $8.4 million, respectively, fair value adjustment to decrease the LitePoint acquisition contingent consideration.

Restructuring

In response to a downturn in the industry in 2008 and 2009, Teradyne initiated restructuring activities across its Semiconductor Test and Systems Test segments to reduce costs, principally through headcount reductions and facility consolidations. The remaining accrual for facility consolidations of $0.6 million is reflected in the other accrued liabilities on the balance sheet and is expected to be paid by October 2013.

	Facility Exit Costs
	(in thousands)
Pre-2012 Activities
Balance at December 31, 2011	$	1,862
Cash payments		(778	)
Balance at December 31, 2012		1,084
Change in estimate		(105	)
Cash payments		(183	)
Balance at March 31, 2013		796
Cash payments		(199	)
Balance at June 30, 2013	$	597

M. 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.

Net periodic pension (benefit) cost was comprised of the following:

	For the Three Months Ended						For the Six Months Ended
	June 30,  2013			July 1,  2012			June 30,  2013			July 1,  2012
	(in thousands)
Service cost	$	852		$	643		$	1,686		$	1,357
Interest cost		3,281			4,125			6,575			8,185
Expected return on plan assets		(3,631	)		(4,082	)		(7,261	)		(8,164	)
Amortization of unrecognized prior service cost		41			58			82			116
Actuarial (gain) loss		(1,123	)		3,146			(1,047	)		3,146
Total net periodic pension (benefit) cost	$	(580	)	$	3,890		$	35		$	4,640

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In the six months ended June 30, 2013, Teradyne contributed $0.9 million to the U.S. supplemental executive defined benefit pension plan and $1.0 million to certain qualified plans for non-U.S. subsidiaries.

Postretirement Benefit Plan

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.

Teradyne’s net periodic postretirement benefit was comprised of the following:

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Service cost	$	21		$	15		$	37		$	34
Interest cost		84			108			171			219
Amortization of unrecognized prior service benefit		(150	)		(150	)		(299	)		(299	)
Actuarial gain		(236	)		(92	)		(236	)		(92	)
Total net periodic post-retirement benefit	$	(281	)	$	(119	)	$	(327	)	$	(138	)

N. Commitments and Contingencies

Purchase Commitments

As of June 30, 2013, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments aggregate to approximately $265.0 million, of which $261.7 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, other than set forth herein, the ultimate disposition of these matters will not have a material adverse effect on Teradyne’s results of operations, financial condition or cash flows.

On May 17, 2013, Boston Semi Equipment (“BSE”) filed a complaint against Teradyne for antitrust violations and unfair business practices alleging that Teradyne is excluding BSE from competing in the market for the sale of reconfigured Teradyne equipment and the market for the repair of Teradyne equipment. BSE seeks unspecified damages and an injunction. Teradyne has filed a motion to dismiss the complaint. Teradyne believes it has meritorious defenses against this claim and intends to vigorously defend against it. While it is not possible to predict or determine the outcomes of the unsettled claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with this action are unlikely to have a material adverse effect on its consolidated financial position, but could possibly be material to its consolidated results of operations and of cash flows of any one period.

O. Income Taxes

The effective tax rate for the three months ended June 30, 2013 and July 1, 2012 was 17% and 27%, respectively. The decrease in Teradyne’s tax rate for the three months ended June 30, 2013 compared to the three

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months ended July 1, 2012, was primarily the result of the 2013 U.S. federal research and development tax credit and utilization of foreign tax credits.

The effective tax rate for the six months ended June 30, 2013 and July 1, 2012 was 7% and 25%, retrospectively. The decrease in Teradyne’s tax rate for the six months ended June 30, 2013 compared to the six months ended July 1, 2012, was primarily the result of recognizing the tax benefit attributable to the 2012 U.S. federal research and development tax credit retrospectively reinstated under the American Taxpayer Relief Act of 2012, 2013 U.S. federal research and development tax credit and utilization of foreign tax credits.

The effective tax rate for the three months and six months ended June 30, 2013 is lower than the 35% U.S. statutory federal tax rate primarily due to the research and development credit and the effect of foreign income taxed at a rate lower than the U.S. statutory rate

P. Segment Information

Teradyne has three operating segments (Semiconductor Test, Wireless Test and Systems 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 Wireless Test segment includes operations related to design, manufacturing and marketing of wireless test products and services. The Systems Test segment includes operations related to design, manufacturing and marketing of products and services for military/aerospace instrumentation test, storage test and circuit-board test. 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, 2012. Segment information is as follows:

	Semiconductor Test		Wireless Test		Systems Test		Corporate and Eliminations			Consolidated
	(in thousands)
Three months ended June 30, 2013:
Net revenues	$	292,431	$	99,386	$	37,072	$	—		$	428,889
Income (loss) before income taxes(1)(2)		58,606		23,913		779		(2,941	)		80,357
Three months ended July 1, 2012:
Net revenues	$	365,058	$	111,928	$	71,298	$	—		$	548,284
Income (loss) before income taxes(1)(2)		91,249		51,139		11,628		(2,024	)		151,992
Six months ended June 30, 2013:
Net revenues	$	503,937	$	132,984	$	72,335	$	—		$	709,256
Income (loss) before income taxes(1)(2)		72,372		13,916		2,309		(9,666	)		78,931
Six months ended July 1, 2012:
Net revenues	$	632,646	$	143,256	$	169,050	$	—		$	944,952
Income (loss) before income taxes(1)(2)		126,247		38,827		33,606		(5,444	)		193,236

(1) Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations.

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(2) Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and six months ended June 30, 2013 and July 1, 2012 that include restructuring and other, 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				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	287	$	5,957	$	500	$	6,169
Restructuring and other		—		286		—		286
Total	$	287	$	6,243	$	500	$	6,455

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

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	1,398	$	1,643	$	4,066	$	2,116
Cost of revenues—inventory step-up		—		1,218		—		6,089
Total	$	1,398	$	2,861	$	4,066	$	8,205

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

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	290	$	1,753	$	1,209	$	2,642
Restructuring and other		131		—		375		—
Total	$	421	$	1,753	$	1,584	$	2,642

Included in Corporate and Eliminations are credits for the following:

	For the Three Months Ended					For the Six Months Ended
	June 30,  2013		July 1,  2012			June 30,  2013		July 1,  2012
	(in thousands)
Restructuring and other	$	—	$	(6,548	)	$	—	$	(8,406	)
Total	$	—	$	(6,548	)	$	—	$	(8,406	)

Q. Stock Repurchase Program

In November 2010, Teradyne’s board of directors authorized a stock repurchase program for up to $200 million. In the three and six months ended June 30, 2013 and July 1, 2012, Teradyne did not repurchase any shares. Cumulatively, as of June 30, 2013, 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 our 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, 2012. 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 semiconductors, wireless products, hard disk drives and circuit boards in the consumer electronics, wireless, automotive, industrial, computing, communications and aerospace and defense industries. Our automatic test equipment products and services include:

• semiconductor test (“Semiconductor Test”) systems;

• wireless test (“Wireless Test”) systems; and

• 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”.

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.

In 2011, we acquired LitePoint Corporation (“LitePoint”) to expand our product portfolio of test equipment in the wireless test sector. LitePoint designs, develops, and supports advanced wireless test solutions for the development and manufacturing of wireless devices, including smart phones, tablets, notebooks/laptops, personal computer peripherals, and other Wi-Fi and cellular enabled devices. LitePoint is our Wireless Test segment.

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.

We believe our acquisitions of LitePoint, Eagle Test and Nextest, 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 business to expand further our addressable markets while tightly managing our costs.

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 six months ended June 30, 2013 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, 2012.

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SELECTED RELATIONSHIPS WITHIN THE CONDENSED CONSOLIDATED

STATEMENTS OF OPERATIONS

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
Percentage of total net revenues:
Net revenues:
Products		85	%		88	%		81	%		86	%
Services		15			12			19			14
Total net revenues		100			100			100			100
Cost of revenues:
Cost of products		37			38			36			40
Cost of services		7			6			8			7
Total cost of revenues		44			44			44			47
Gross profit		56			56			56			53
Operating expenses:
Engineering and development		16			12			18			14
Selling and administrative		16			13			19			15
Acquired intangible asset amortization		4			3			5			4
Restructuring and other		—			(1	)		—			(1	)
Total operating expenses		36			28			43			31
Income from operations		20			29			13			22
Interest income		—			—			—			—
Interest expense and other		(2	)		(1	)		(2	)		(1	)
Income before income taxes		19			28			11			20
Income tax provision		3			7			1			5
Net income		16	%		20	%		10	%		15	%

Results of Operations

Second Quarter 2013 Compared to Second Quarter 2012

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
	June 30, 2013		July 1, 2012
Semiconductor Test		1.2		1.0
Wireless Test		0.9		1.7
Systems Test		0.7		0.6
Total Company		1.1		1.1

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Revenues

Net revenues by reportable segment were as follows:

	For the Three Months Ended				Dollar Change
	June 30, 2013		July 1, 2012
	(in millions)
Semiconductor Test	$	292.4	$	365.1	$	(72.7	)
Wireless Test		99.4		111.9		(12.5	)
Systems Test		37.1		71.3		(34.2	)
	$	428.9	$	548.3	$	(119.4	)

The decrease in Semiconductor Test revenues of $72.7 million or 20% from the three months ended July 1, 2012 to the three months ended June 30, 2013, was primarily due to a decrease in system-on-a-chip (“SOC”) test product sales. The decrease in Systems Test revenue of $34.2 million or 48% was primarily due to a decrease in sales due to lower product volume in Storage Test systems. The decrease in Storage Test systems sales was due to lower hard disk drive demand primarily from lower shipments of personal computers, a trend which is expected to continue. The decrease in Wireless Test revenue of $12.5 million or 11% was primarily due to lower volume.

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

	For the Three Months Ended
	June 30, 2013			July 1, 2012
China		28	%		24	%
Taiwan		19			23
United States		12			12
Singapore		11			5
Korea		8			12
Europe		6			4
Malaysia		6			5
Japan		5			4
Philippines		2			8
Thailand		1			3
Rest of World		2			—
		100	%		100	%

Gross Profit

Our gross profit was as follows:

	For the Three Months Ended						Dollar/Point Change
	June 30, 2013			July 1, 2012
	(in millions)
Gross Profit	$	241.2		$	309.5		$	(68.3	)
Percent of Total Revenue		56.2	%		56.4	%		(0.2	)

Gross profit as a percent of revenue decreased by 0.2 percentage points from the three months ended July 1, 2012 to the three months ended June 30, 2013. This decrease was the result of a decrease of 2.3 points due to

24

lower sales volume, a decrease of 1.5 points related to product mix primarily from lower Wireless Test systems sales, partially offset by lower excess and obsolete inventory provisions.

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 twelve quarters, is written-down to estimated net realizable value.

During the three months ended June 30, 2013, we recorded an inventory provision of $2.0 million included in cost of revenues, due to downward revisions to previously forecasted demand levels. Of the $2.0 million of total excess and obsolete provisions, $1.4 million was related to Wireless Test, $0.3 million was related to Systems Test, and $0.3 million was related to Semiconductor Test.

During the three months ended July 1, 2012, we recorded an inventory provision of $9.4 million included in cost of revenues, due to the following factors:

• A decline in demand versus previously forecasted demand levels for a prior generation Nextest Magnum resulted in an inventory provision of $3.2 million.

• A $2.6 million inventory write-down as a result of product transition related to the Flex Test Platform in Semiconductor Test.

• The remainder of the charge of $3.6 million primarily reflects downward revisions to previously forecasted demand levels, of which $1.8 million was related to Systems Test, $1.6 million was related to Wireless Test and $0.2 million was related to Semiconductor Test.

During the three months ended June 30, 2013 and July 1, 2012, we scrapped $2.3 million and $2.8 million of inventory, respectively. During the three months ended June 30, 2013, we sold $3.1 million of previously written-down or written-off inventory. As of June 30, 2013, we had inventory related reserves for inventory which had been written-down or written-off totaling $140.0 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
	June 30, 2013			July 1, 2012
	(in millions)
Engineering and Development	$	67.8		$	67.8		$	—
Percent of Total Revenue		15.8	%		12.4	%

Engineering and development expenses remained flat as higher spending in Semiconductor Test was offset by lower variable compensation.

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Selling and Administrative

Selling and administrative expenses were as follows:

	For the Three Months Ended						Dollar Change
	June 30, 2013			July 1, 2012
	(in millions)
Selling and Administrative	$	69.2		$	72.1		$	(2.9	)
Percent of Total Revenue		16.1	%		13.1	%

The decrease of $2.9 million in selling and administrative expenses from the three months ended July 1, 2012 to the three months ended June 30, 2013, was due primarily to lower variable compensation, partially offset by increased sales and marketing spending in Semiconductor Test and Wireless Test.

Restructuring and Other

During the three months ended July 1, 2012, due to a decrease in specified new product revenue through the December 31, 2012 earn-out period end date, we recorded a $6.5 million fair value adjustment to decrease the LitePoint acquisition contingent consideration.

Interest and Other

Interest expense and other increased by $0.1 million from the three months ended July 1, 2012 to the three months ended June 30, 2013, due primarily to higher interest expense from increased convertible debt discount amortization.

Income Taxes

The effective tax rate for the three months ended June 30, 2013 and July 1, 2012 was 17% and 27%, respectively. The decrease in our tax rate for the three months ended June 30, 2013 compared to the three months ended July 1, 2012, was primarily the result of the 2013 U.S. federal research and development tax credit and utilization of foreign tax credits.

The effective tax rate for the three months ended June 30, 2013 is lower than the 35% U.S. statutory federal tax rate primarily due to the research and development credit and the effect of foreign income taxed at a rate lower than the U.S. statutory rate.

On a quarterly basis, we evaluate the realizability of our deferred tax assets by jurisdiction and assess the need for a valuation allowance. At June 30, 2013, 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.

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Six Months of 2013 Compared to Six Months of 2012

Revenues

Net revenues by reportable segment were as follows:

	For the Six Months Ended				Dollar Change
	June 30, 2013		July 1, 2012
	(in millions)
Semiconductor Test	$	504.0	$	632.6	$	(128.6	)
Wireless Test		133.0		143.3		(10.3	)
Systems Test		72.3		169.1		(96.8	)
	$	709.3	$	945.0	$	(235.7	)

The decrease of $128.6 million or 20% in Semiconductor Test revenues from the six months ended July 1, 2012 to the six months ended June 30, 2013, was primarily due to a decrease in system-on-a-chip (“SOC”) test product sales. The decrease in Systems Test revenue of $96.8 million or 57% was primarily due to a decrease in sales due to lower product volume in Storage Test systems. The decrease in Storage Test systems sales was due to lower hard disk drive demand primarily from lower shipments of personal computers, a trend which is expected to continue. The decrease in Wireless Test revenue of $10.3 million or 7% was primarily due to lower volume.

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

	For the Six Months Ended
	June 30, 2013			July 1, 2012
China		24	%		20	%
Taiwan		18			19
United States		15			12
Singapore		10			5
Korea		8			13
Europe		7			5
Malaysia		6			5
Japan		5			6
Philippines		3			7
Thailand		2			7
Rest of World		2			1
		100	%		100	%

Gross Profit

Our gross profit was as follows:

	For the Six Months Ended						Dollar/Point Change
	June 30, 2013			July 1, 2012
	(in millions)
Gross Profit	$	394.7		$	500.4		$	(105.7	)
Percent of Total Revenue		55.6	%		53.0	%		2.6

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Gross profit as a percent of revenue increased by 2.6 percentage points from the six months ended July 1, 2012 to the six months ended June 30, 2013, primarily due to a favorable product mix in SOC Semiconductor Test and lower Storage Test systems sales.

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 twelve quarters, is written-down to estimated net realizable value.

During the six months ended June 30, 2013, we recorded an inventory provision of $5.8 million included in cost of revenues, due to the downward revisions to previously forecasted demand levels. Of the $5.8 million of total excess and obsolete provisions, $4.1 million was related to Wireless Test, $1.2 million was related to Systems Test, and $0.5 million was related to Semiconductor Test.

During the six months ended July 1, 2012, we recorded an inventory provision of $10.9 million included in cost of revenues, due to the following factors:

• A decline in demand versus previously forecasted demand levels for a prior generation Nextest Magnum resulted in an inventory provision of $3.2 million.

• A $2.6 million inventory write-down as a result of product transition related to the Flex Test Platform in Semiconductor Test.

• The remainder of the charge of $5.1 million primarily reflects downward revisions to previously forecasted demand levels, of which $2.6 million was related to Systems Test, $2.1 million was related to Wireless Test and $0.4 million was related to Semiconductor Test.

During the six months ended June 30, 2013 and July 1, 2012, we scrapped $2.9 million and $6.9 million of inventory, respectively. During the six months ended June 30, 2013 and July 1, 2012, we sold $4.8 million and $1.3 million, respectively, of previously written-down or written-off inventory. As of June 30, 2013, we had inventory related reserves for inventory which had been written-down or written-off totaling $140.0 million. We have no pre-determined timeline to scrap the remaining inventory.

Engineering and Development

Engineering and development expenses were as follows:

	For the Six Months Ended						Dollar Change
	June 30, 2013			July 1, 2012
	(in millions)
Engineering and Development	$	130.5		$	129.1		$	1.4
Percent of Total Revenue		18.4	%		13.7	%

The increase of $1.4 million in engineering and development expenses from the six months ended July 1, 2012 to the six months ended June 30, 2013, was due primarily to increased spending in Semiconductor Test, partially offset by lower variable compensation.

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Selling and Administrative

Selling and administrative expenses were as follows:

	For the Six Months Ended						Dollar Change
	June 30, 2013			July 1, 2012
	(in millions)
Selling and Administrative	$	137.1		$	138.7		$	(1.6	)
Percent of Total Revenue		19.3	%		14.7	%

The decrease of $1.6 million in selling and administrative expenses from the six months ended July 1, 2012 to the six months ended June 30, 2013, was due primarily to lower variable compensation, partially offset by increased sales and marketing spending in Semiconductor Test and Wireless Test.

Restructuring and Other

During the six months ended July 1, 2012, due to a decrease in specified new product revenue through the December 31, 2012 earn-out period end date, we recorded an $8.4 million fair value adjustment to decrease the LitePoint acquisition contingent consideration.

Interest and Other

Interest income increased by $0.2 million from the six months ended July 1, 2012 to the six months ended June 30, 2013, due primarily to higher cash and marketable securities balances in the first six months of 2013. Interest expense and other increased by $1.0 million from the six months ended July 1, 2012 to the six months ended June 30, 2013, due primarily to higher interest expense from increased convertible debt discount amortization.

Income Taxes

The effective tax rate for the six months ended June 30, 2013 and July 1, 2012 was 7% and 25%, retrospectively. The decrease in our tax rate for the six months ended June 30, 2013 compared to the six months ended July 1, 2012, was primarily the result of recognizing the tax benefit attributable to the 2012 U.S. federal research and development tax credit retrospectively reinstated under the American Taxpayer Relief Act of 2012, 2013 U.S. federal research and development tax credit and utilization of foreign tax credits.

The effective tax rate for the six months ended June 30, 2013 is lower than the 35% U.S. statutory federal tax rate primarily due to the research and development credit and the effect of foreign income taxed at a rate lower than the U.S. statutory rate.

On a quarterly basis, we evaluate the realizability of our deferred tax assets by jurisdiction and assess the need for a valuation allowance. At June 30, 2013, 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.

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Contractual Obligations

The following table reflects our contractual obligations at June 30, 2013:

	Payments Due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years		Other
	(in thousands)
Purchase Obligations	$	265,022	$	261,701	$	3,321	$	—	$	—	$	—
Debt Obligations		192,031		192,031		—		—		—		—
Retirement Plan Contributions		52,041		5,092		10,648		10,848		25,453		—
Operating Lease Obligations		49,461		13,748		20,079		9,098		6,536		—
Interest on Debt		8,571		8,571		—		—		—		—
Other Long-Term Liabilities Reflected on the Balance Sheet under GAAP(1)		80,602		—		18,240		—		—		62,362
Total	$	647,728	$	481,143	$	52,288	$	19,946	$	31,989	$	62,362

(1) 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”.

Liquidity and Capital Resources

Our cash, cash equivalents and marketable securities balances increased by $25.3 million in the six months ended June 30, 2013, to $1,032 million. Cash activity for the six months ended June 30, 2013 and July 1, 2012 was as follows:

	For the Six Months Ended
	June 30, 2013			July 1, 2012
	(in millions)
Cash provided by operating activities:
Net income, adjusted for non-cash items	$	152.5		$	255.2
Change in operating assets and liabilities		(83.5	)		(141.9	)
Total cash provided by operating activities		69.0			113.3
Total cash used for investing activities		(190.1	)		(115.5	)
Total cash provided by financing activities		9.8			17.5
(Decrease) increase in cash and cash equivalents	$	(111.3	)	$	15.3

In the six months ended June 30, 2013, changes in operating assets and liabilities used cash of $83.5 million. This was due to a $65.7 million increase in operating assets and an $17.8 million decrease in operating liabilities.

The increase in operating assets was due to a $74.8 million increase in accounts receivable due to higher sales volume, a $17.3 million increase in other assets primarily due to an increase in prepayments, partially offset by a $26.4 million decrease in inventories. The decrease in operating liabilities was due to a $24.0 million decrease in accrued employee compensation due primarily to variable compensation and employee stock awards payroll taxes payments, a $3.1 million decrease in customer advance payments and deferred revenue, and $2.5 million of retirement plan contributions, partially offset by a $8.8 million increase in accounts payable due to increased sales volume and a $3.0 million increase in accrued income taxes.

30

Investing activities during the six months ended June 30, 2013 used cash of $190.1 million, due to $458.1 million used for purchases of marketable securities and $50.8 million used for purchases of property, plant and equipment, partially offset by proceeds from maturities and sales of marketable securities that provided cash of $268.5 million and $50.3 million, respectively.

Financing activities during the six months ended June 30, 2013 provided cash of $9.8 million, $9.6 million was from the issuance of common stock under stock option and stock purchase plans and $1.6 million from the tax benefit related to stock options and restricted stock units, partially offset by $0.4 million of cash used for payments related to LitePoint acquisition contingent consideration and $1.1 million of cash used for payments on long-term debt related to the Japan loan.

In the six months ended July 1, 2012, changes in operating assets and liabilities used cash of $141.9 million. This was due to a $190.3 million increase in operating assets, partially offset by a $48.4 million increase in operating liabilities.

The increase in operating assets was due to a $216.8 million increase in accounts receivable resulting from higher sales volume, partially offset by a $21.4 million decrease in inventories and a $5.0 million decrease in other assets primarily due to a decrease in prepayments. The increase in operating liabilities was due to a $47.5 million increase in accounts payable due to increased sales volume, a $30.0 million increase in accrues income taxes, and a $1.1 million increase in other accrued liabilities, partially offset by a $21.4 million decrease in accrued employee compensation due primarily to variable compensation and employee stock awards payroll taxes payments, a $6.2 million decrease in customer advance payments and deferred revenue and $2.6 million of retirement plan contributions.

Investing activities during the six months ended July 1, 2012 used cash of $115.5 million, due to $153.9 million used for purchases of marketable securities and $57.8 million used for purchases of property, plant and equipment, partially offset by proceeds from maturities and sales of marketable securities that provided cash of $86.2 million and $10.0 million, respectively.

Financing activities during the six months ended July 1, 2012 provided cash of $17.5 million, $17.0 million was from the issuance of common stock under stock option and stock purchase plans, and $7.6 million from the tax benefit related to stock options and restricted stock units, 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.

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. 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. We have approximately $330 million of cash outside the U.S. that if repatriated would incur additional taxes. Inflation has not had a significant long-term impact on earnings.

Equity Compensation Plans

As discussed in Note P “Stock Based Compensation” in our 2012 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.

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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 the understanding of the effects of netting arrangements on an entity’s financial statements, including financial instruments and derivative instruments that are either offset or subject to a master netting arrangement. The scope of this ASU includes derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing and lending arrangements. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. We adopted this ASU effective January 1, 2013. See Note D “Financial Instruments and Derivatives.”

In February 2013, the Financial Accounting Standards Board (FASB) issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” amending the disclosure requirements regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The amendment does not change the current requirement for reporting net income or other comprehensive income, but requires additional disclosures about significant amounts reclassified out of accumulated other comprehensive income including the effect of the reclassification on the related statement of operations line items. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. We adopted this amendment effective January 1, 2013. See Note I “Accumulated Other Comprehensive Income.”

On July 18, 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This ASU, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by unrecognized tax benefits. The provisions of this ASU are effective for interim and annual periods beginning on or after December 15, 2013. We do not expect this ASU to have a material impact on our financial position or results of operations.

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 March 1, 2013. 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, 2012.

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, other than as set forth herein, the ultimate disposition of these matters will not have a material adverse effect on our results of operations, financial condition or cash flows.

On May 17, 2013, Boston Semi Equipment (“BSE”) filed a complaint against us for antitrust violations and unfair business practices alleging that we are excluding BSE from competing in the market for the sale of reconfigured Teradyne equipment and the market for the repair of Teradyne equipment. BSE seeks unspecified damages and an injunction. We filed a motion to dismiss the complaint. We believe we have meritorious defenses against this claim and intend to vigorously defend against it. While it is not possible to predict or determine the outcomes of the unsettled claims or to provide possible ranges of losses that may arise, we believe the potential losses associated with this action is unlikely to have a material adverse effect on our consolidated financial position, but could possibly be material to our consolidated results of operations and of cash flows of any one period.

Item 1A: Risk Factors

In addition to the other information set forth in this Form 10-Q, 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, 2012, 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.

A breach of our operational or security systems could negatively affect our business and results of operations.

A failure in or a breach of our operational or security systems or infrastructure, or those of our suppliers and other service providers, including as a result of cyber attacks, could disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses and increase our costs.

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

In November 2010, Teradyne’s board of directors authorized a stock repurchase program for up to $200 million. Cumulatively, as of June 30, 2013, we have repurchased 2.6 million shares of common stock for $31.2 million at an average price of $11.84.

33

The following table includes information with respect to repurchases we made of our common stock during the three months ended June 30, 2013 (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
April 1, 2013 – April 28, 2013		—	$	—		—	$	168,825
April 29, 2013 – May 26, 2013		—	$	—		—	$	168,825
May 27, 2013 – June 30, 2013		—	$	—		—	$	168,825
		—	$	—		—	$	168,825

We satisfy the U.S. minimum statutory 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 minimum withholding amount due.

Item 4: Mine Safety Disclosures

Not Applicable

34

Item 6: Exhibits

Exhibit Number	Description
10.1	2006 Equity and Cash Compensation Incentive Plan, as amended (filed as Appendix A to Teradyne’s Notice and Proxy Statement on Schedule 14A filed with the Commission on April 11, 2013 (File No.001-06462) and incorporated herein by reference). *
10.2	1996 Employee Stock Purchase Plan, as amended (filed as Appendix B to Teradyne’s Notice and Proxy Statement on Schedule 14A filed with the Commission on April 11, 2013 (File No.001-06462) and incorporated herein by reference). *
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

* Management contract or compensatory plan.

35

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)

August 9, 2013

36

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: August 9, 2013

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: August 9, 2013

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 June 30, 2013 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

August 9, 2013

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 June 30, 2013 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

August 9, 2013

XML

Net Income per Common Share

6 Months Ended

Jun. 30, 2013

Net Income per Common Share

K. 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				For the Six Months Ended
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	66,556	$	111,387	$	73,145	$	144,951
Weighted average common shares-basic		190,569		186,573		190,128		186,205
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes(1)		23,266		22,301		23,326		22,651
Convertible note hedge warrant shares(2)		18,689		17,340		18,774		17,829
Restricted stock units		772		1,171		947		1,405
Stock options		1,554		2,160		1,615		2,247
Employee stock purchase rights		59		101		43		62
Dilutive potential common shares		44,340		43,073		44,705		44,194
Weighted average common shares-diluted		234,909		229,646		234,833		230,399
Net income per common share-basic	$	0.35	$	0.60	$	0.38	$	0.78
Net income per common share-diluted	$	0.28	$	0.49	$	0.31	$	0.63

(1) Incremental shares from assumed conversion of the convertible notes for the three and six months ended June 30, 2013 and July 1, 2012 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 the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

(2) Convertible note hedge warrant shares for the three and six months ended June 30, 2013 and July 1, 2012 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 the 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 and six months ended June 30, 2013 excludes the effect of the potential exercise of stock options to purchase approximately 0.5 million shares because the effect would have been anti-dilutive.

The computation of diluted net income per common share for the three and six months ended July 1, 2012 excludes the effect of the potential exercise of stock options to purchase approximately 0.3 million shares and restricted stock units of 0.1 million because the effect would have been anti-dilutive.

With respect to 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.

XML

Accumulated Other Comprehensive Income Balances (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Other Comprehensive Income (Loss) [Line Items]
Retirement plans prior service benefit, net of tax of $(125) and $(125)	$ 2,678	$ 2,895
Unrealized gains on marketable securities, net of tax of $835 and $835	601	2,925
Total accumulated other comprehensive income	$ 3,279	$ 5,820

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jul. 01, 2012		Jun. 30, 2013		Jul. 01, 2012
Net revenues:
Products	$ 363,087		$ 480,578		$ 577,387		$ 811,469
Services	65,802		67,706		131,869		133,483
Total net revenues	428,889		548,284		709,256		944,952
Cost of revenues:
Cost of products	158,411		206,498		255,204		380,499
Cost of services	29,245		32,280		59,402		64,021
Total cost of revenues	187,656		238,778		314,606		444,520
Gross profit	241,233		309,506		394,650		500,432
Operating expenses:
Engineering and development	67,773		67,834		130,524		129,113
Selling and administrative	69,230		72,064		137,120		138,697
Acquired intangible assets amortization	18,063		18,429		36,099		36,858
Restructuring and other	259		(6,262)		591		(8,087)
Total operating expenses	155,325		152,065		304,334		296,581
Income from operations	85,908		157,441		90,316		203,851
Interest income	903		874		1,975		1,767
Interest expense and other	(6,454)		(6,323)		(13,360)		(12,382)
Income before income taxes	80,357	[1],[2]	151,992	[1],[2]	78,931	[1],[2]	193,236	[1],[2]
Income tax provision	13,801		40,605		5,786		48,285
Net income	$ 66,556		$ 111,387		$ 73,145		$ 144,951
Net income per common share:
Basic	$ 0.35		$ 0.60		$ 0.38		$ 0.78
Diluted	$ 0.28		$ 0.49		$ 0.31		$ 0.63
Weighted average common share-basic	190,569		186,573		190,128		186,205
Weighted average common share-diluted	234,909		229,646		234,833		230,399

[1] Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and six months ended June 30, 2013 and July 1, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows:

[2] Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations.

XML

Financial Instruments and Derivatives

6 Months Ended

Jun. 30, 2013

Financial Instruments and Derivatives

D. 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 and six months ended June 30, 2013 and July 1, 2012. 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.

Most of Teradyne’s fixed income securities are classified as Level 2, with the exception of U.S. Treasury securities and investments in equity and debt mutual funds, which are classified as Level 1, and contingent consideration, which is classified as Level 3. The majority of Level 2 securities are priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities.

There were no realized losses recorded in the three and six months ended June 30, 2013 and July 1, 2012. Realized gains recorded in the three and six months ended June 30, 2013 were $0.1 million and $0.3 million, respectively. Realized gains recorded in the three and six months ended July 1, 2012 were $0.3 million and $0.6 million, respectively. Realized gains are included in interest income.

During the six months ended June 30, 2013 and July 1, 2012, there were no transfers in or out of Level 1, Level 2 or Level 3 financial instruments.

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 June 30, 2013 and December 31, 2012.

	June 30, 2013
	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
Cash	$	115,442	$	—	$	—	$	115,442
Cash equivalents		107,988		4,171		—		112,159
Available-for-sale securities:
U.S. Treasury securities		382,871		—		—		382,871
U.S. government agency securities		—		261,598		—		261,598
Commercial paper		—		97,667		—		97,667
Corporate debt securities		—		50,161		—		50,161
Equity and debt mutual funds		11,360		—		—		11,360
Certificates of deposit and time deposits		—		257		—		257
Non-U.S. government securities		—		80		—		80
Total		617,661		413,934		—		1,031,595
Derivatives		—		7		—		7
Total	$	617,661	$	413,941	$	—	$	1,031,602

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	223,430	$	4,171	$	—	$	227,601
Marketable securities		289,230		211,918		—		501,148
Long-term marketable securities		105,001		197,845		—		302,846
Prepayments and other current assets		—		7		—		7
	$	617,661	$	413,941	$	—	$	1,031,602

	December 31, 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
Cash	$	139,354	$	—	$	—	$	139,354
Cash equivalents		183,039		16,527		—		199,566
Available-for-sale securities:
U.S. Treasury securities		312,116		—		—		312,116
U.S. government agency securities		—		217,655		—		217,655
Commercial paper		—		70,434		—		70,434
Corporate debt securities		—		55,755		—		55,755
Equity and debt mutual funds		9,717		—		—		9,717
Certificates of deposit and time deposits		—		1,627		—		1,627
Non-U.S. government securities		—		84		—		84
Total		644,226		362,082		—		1,006,308
Derivatives		—		121		—		121
Total	$	644,226	$	362,203	$	—	$	1,006,429
Liabilities
Contingent consideration	$	—	$	—	$	388	$	388
Total	$	—	$	—	$	388	$	388

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	322,393	$	16,527	$	—	$	338,920
Marketable securities		239,192		192,324		—		431,516
Long-term marketable securities		82,641		153,231		—		235,872
Prepayments and other current assets		—		121		—		121
	$	644,226	$	362,203	$	—	$	1,006,429
Liabilities
Other accrued liabilities	$	—	$	—	$	388	$	388
	$	—	$	—	$	388	$	388

Changes in the fair value of Level 3 contingent consideration for the three and six months ended June 30, 2013 were as follows:

	Contingent consideration
	(in thousands)
Balance at December 31, 2012	$	388
Payments		(313	)
Balance at March 31, 2013		75
Payments		(75	)
Balance at June 30, 2013	$	—

The carrying amounts and fair values of financial instruments at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Cash and cash equivalents	$	227,601	$	227,601	$	338,920	$	338,920
Marketable securities		803,994		803,994		667,388		667,388
Convertible debt(1)		177,532		610,726		169,896		589,000
Japan loan		2,033		2,033		3,491		3,491

(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.

The following tables summarize the composition of available-for-sale marketable securities at June 30, 2013 and December 31, 2012:

	June 30, 2013
	Available-for-Sale									Fair Market Value of Investments with  Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
U.S. Treasury securities	$	382,884	$	144	$	(157	)	$	382,871	$	166,301
U.S. government agency securities		261,870		129		(401	)		261,598		130,310
Commercial paper		97,660		14		(7	)		97,667		18,722
Corporate debt securities		50,043		1,032		(914	)		50,161		11,926
Equity and debt mutual funds		9,761		1,647		(48	)		11,360		892
Certificates of deposit and time deposits		257		—		—			257		—
Non-U.S. government securities		80		—		—			80		—
	$	802,555	$	2,966	$	(1,527	)	$	803,994	$	328,151

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses
	(in thousands)
Marketable securities	$	501,007	$	170	$	(29	)	$	501,148	$	135,029
Long-term marketable securities		301,548		2,796		(1,498	)		302,846		193,122
	$	802,555	$	2,966	$	(1,527	)	$	803,994	$	328,151

	December 31, 2012
	Available-for-Sale									Fair Market Value of Investments with  Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
U.S. Treasury securities	$	311,915	$	216	$	(15	)	$	312,116	$	1,018
U.S. government agency securities		217,396		262		(3	)		217,655		9,018
Commercial paper		70,431		9		(6	)		70,434		25,209
Corporate debt securities		53,405		2,414		(64	)		55,755		23,255
Equity and debt mutual funds		8,767		961		(11	)		9,717		600
Certificates of deposit and time deposits		1,627		—		—			1,627		—
Non-U.S. government securities		84		—		—			84		—
	$	663,625	$	3,862	$	(99	)	$	667,388	$	59,100

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses
	(in thousands)
Marketable securities	$	431,324	$	203	$	(11	)	$	431,516	$	41,110
Long-term marketable securities		232,301		3,659		(88	)		235,872		17,990
	$	663,625	$	3,862	$	(99	)	$	667,388	$	59,100

As of June 30, 2013, the fair market value of marketable securities with unrealized losses totaled $328.2 million. Of this value, $2.1 million had unrealized losses greater than one year and $326.1 million had unrealized losses less than one year. As of December 31, 2012, the fair market value of marketable securities with unrealized losses totaled $59.1 million. There were no unrealized losses greater than one year.

The contractual maturities of available-for-sale marketable securities at June 30, 2013 were as follows:

	June 30, 2013
	Cost		Fair Market Value
	(in thousands)
Due within one year	$	501,007	$	501,148
Due after 1 year through 5 years		275,543		276,815
Due after 5 years through 10 years		2,968		3,024
Due after 10 years		23,037		23,007
Total	$	802,555	$	803,994

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 $54.0 million and $64.1 million at June 30, 2013 and December 31, 2012, respectively.

The following table summarizes the fair value of derivative instruments at June 30, 2013 and December 31, 2012.

	Balance Sheet Location		June 30, 2013		December 31, 2012
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Prepayments and other current assets	$	7	$	121
			$	7	$	121

Teradyne had no offsetting foreign exchange contracts at June 30, 2013 and December 31, 2012.

The following table summarizes the effect of derivative instruments recognized in the statement of operations during the three and six months ended June 30, 2013 and July 1, 2012. The table does not reflect the corresponding (losses) gains from the remeasurement of the monetary assets and liabilities denominated in foreign currencies, which were $(1.8) million, $2.5 million, $(4.6) million, and $(0.4) million, respectively for the three and six months ended June 30, 2013 and July 1, 2012.

	Location of Gains (Losses) Recognized in Statement of Operations		For the Three Months Ended					For the Six Months Ended
			June 30, 2013		July 1, 2012			June 30, 2013		July 1, 2012
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Interest expense and other	$	1,818	$	(2,360	)	$	4,067	$	520
			$	1,818	$	(2,360	)	$	4,067	$	520

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

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Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Basis of Presentation

Basis of Presentation

The condensed consolidated interim financial statements include the accounts of Teradyne and its wholly-owned 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, 2012 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 U.S. Security and Exchange Commission (“SEC”) on March 1, 2013, for the year ended December 31, 2012.

Preparation of Financial Statements and Use of Estimates

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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Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Income Taxes [Line Items]
Effective tax rate	17.00%	27.00%	7.00%	25.00%
U.S. statutory federal tax rate	35.00%		35.00%

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Schedule of Amortizable Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets
Gross Carrying Amount	$ 538,326	$ 537,366
Accumulated Amortization	254,598	218,499
Net Carrying Amount	283,728	318,867
Weighted Average Useful Life, years	7 years	7 years
Developed technology
Finite-Lived Intangible Assets
Gross Carrying Amount	358,515	357,555
Accumulated Amortization	168,339	143,126
Net Carrying Amount	190,176	214,429
Weighted Average Useful Life, years	6 years 3 months 18 days	6 years 3 months 18 days
Customer Relationships And Service And Software Maintenance Contracts
Finite-Lived Intangible Assets
Gross Carrying Amount	144,971	144,971
Accumulated Amortization	72,581	63,464
Net Carrying Amount	72,390	81,507
Weighted Average Useful Life, years	8 years	8 years
Trade Names And Trademarks
Finite-Lived Intangible Assets
Gross Carrying Amount	33,840	33,840
Accumulated Amortization	12,678	10,909
Net Carrying Amount	21,162	22,931
Weighted Average Useful Life, years	9 years	9 years
Customer Backlog
Finite-Lived Intangible Assets
Gross Carrying Amount	1,000	1,000
Accumulated Amortization	$ 1,000	$ 1,000
Weighted Average Useful Life, years	4 months 24 days	4 months 24 days

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Restructuring and Other

6 Months Ended

Jun. 30, 2013

Restructuring and Other

L. Restructuring and Other

Other

During the three and six months ended July 1, 2012, due to a decrease in specified new product revenue through the December 31, 2012 earn-out period end date, Teradyne recorded a $6.5 million and $8.4 million, respectively, fair value adjustment to decrease the LitePoint acquisition contingent consideration.

Restructuring

In response to a downturn in the industry in 2008 and 2009, Teradyne initiated restructuring activities across its Semiconductor Test and Systems Test segments to reduce costs, principally through headcount reductions and facility consolidations. The remaining accrual for facility consolidations of $0.6 million is reflected in the other accrued liabilities on the balance sheet and is expected to be paid by October 2013.

	Facility Exit Costs
	(in thousands)
Pre-2012 Activities
Balance at December 31, 2011	$	1,862
Cash payments		(778	)
Balance at December 31, 2012		1,084
Change in estimate		(105	)
Cash payments		(183	)
Balance at March 31, 2013		796
Cash payments		(199	)
Balance at June 30, 2013	$	597

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Deferred Revenue and Customer Advances (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Deferred Revenue Arrangement
Maintenance, training and extended warranty	$ 56,499	$ 51,198
Customer advances	29,025	39,613
Undelivered elements	8,970	6,773
Total deferred revenue and customer advances	$ 94,494	$ 97,584

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Goodwill and Intangible Assets Disclosure [Line Items]
Aggregate intangible asset amortization expense	$ 18,063	$ 18,429	$ 36,099	$ 36,858

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Schedule of Reported Financial Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	$ 1,031,602	$ 1,006,429
Liabilities		388
Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	227,601	338,920
Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	501,148	431,516
Long-term marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	302,846	235,872
Other Accrued Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities		388
Prepayments and other current assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	7	121
Quoted Prices in Active Markets for Identical Instruments (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	617,661	644,226
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	223,430	322,393
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	289,230	239,192
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Long-term marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	105,001	82,641
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	413,941	362,203
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	4,171	16,527
Significant Other Observable Inputs (Level 2) | Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	211,918	192,324
Significant Other Observable Inputs (Level 2) | Long-term marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	197,845	153,231
Significant Other Observable Inputs (Level 2) | Prepayments and other current assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets	7	121
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities		388
Significant Unobservable Inputs (Level 3) | Other Accrued Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities		$ 388

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Deferred Revenue and Customer Advances (Tables)

6 Months Ended

Jun. 30, 2013

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.

	June 30, 2013		December 31, 2012
	(in thousands)
Maintenance, training and extended warranty	$	56,499	$	51,198
Customer advances		29,025		39,613
Undelivered elements		8,970		6,773
Total deferred revenue and customer advances	$	94,494	$	97,584

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Debt (Tables)

6 Months Ended

Jun. 30, 2013

Components of Convertible Senior Notes

The tables below represent the components of Teradyne’s convertible senior notes:

	June 30, 2013		December 31, 2012
	(in thousands)
Debt principal	$	189,998	$	190,000
Unamortized debt discount		12,466		20,104
Net carrying amount of the convertible debt	$	177,532	$	169,896

Interest Expense on Convertible Senior Notes

The interest expense on Teradyne’s convertible senior notes for the three and six months ended June 30, 2013 and July 1, 2012 was as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Contractual interest expense	$	2,137	$	2,138	$	4,274	$	4,299
Amortization of the discount component and debt issue fees		4,087		3,592		8,044		7,071
Total interest expense on the convertible debt	$	6,224	$	5,730	$	12,318	$	11,370

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Components of Convertible Senior Notes (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Debt Instrument
Debt principal	$ 189,998	$ 190,000
Unamortized debt discount	12,466	20,104
Net carrying amount of the convertible debt	$ 177,532	$ 169,896

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Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2013

Post-Retirement Benefit Plans

Net Periodic Pension (Benefit) Cost

Teradyne’s net periodic postretirement benefit was comprised of the following:

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Service cost	$	21		$	15		$	37		$	34
Interest cost		84			108			171			219
Amortization of unrecognized prior service benefit		(150	)		(150	)		(299	)		(299	)
Actuarial gain		(236	)		(92	)		(236	)		(92	)
Total net periodic post-retirement benefit	$	(281	)	$	(119	)	$	(327	)	$	(138	)

Defined Benefit Pension Plans

Net Periodic Pension (Benefit) Cost

Net periodic pension (benefit) cost was comprised of the following:

	For the Three Months Ended						For the Six Months Ended
	June 30,  2013			July 1,  2012			June 30,  2013			July 1,  2012
	(in thousands)
Service cost	$	852		$	643		$	1,686		$	1,357
Interest cost		3,281			4,125			6,575			8,185
Expected return on plan assets		(3,631	)		(4,082	)		(7,261	)		(8,164	)
Amortization of unrecognized prior service cost		41			58			82			116
Actuarial (gain) loss		(1,123	)		3,146			(1,047	)		3,146
Total net periodic pension (benefit) cost	$	(580	)	$	3,890		$	35		$	4,640

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Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013		Dec. 31, 2012		Jul. 01, 2012	Dec. 31, 2011	Mar. 31, 2009
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash and cash equivalents, Carrying Value	$ 227,601		$ 338,920		$ 589,056	$ 573,736
Convertible debt, Carrying Value	177,532		169,896
Japan loan, Carrying Value							10,000
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash and cash equivalents, Carrying Value	227,601		338,920
Marketable securities, Carrying Value	803,994		667,388
Convertible debt, Carrying Value	177,532	[1]	169,896	[1]
Japan loan, Carrying Value	2,033		3,491
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash and cash equivalents, Fair Value	227,601		338,920
Marketable securities, Fair Value	803,994		667,388
Convertible debt, Fair Value	610,726	[1]	589,000	[1]
Japan loan, Fair Value	$ 2,033		$ 3,491

[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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Other Accrued Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Schedule of Accrued Liabilities [Line Items]
Balance at beginning of period	$ 7,075	$ 8,722	$ 9,786	$ 8,154
Accruals for warranties issued during the period	3,684	5,649	5,107	9,425
Adjustments related to pre-existing warranties	(869)	403	(1,798)	143
Settlements made during the period	(2,539)	(3,727)	(5,744)	(6,675)
Balance at end of period	7,351	11,047	7,351	11,047
Balance at beginning of period	28,599	12,927	26,987	12,742
Deferral of new extended warranty revenue	8,734	9,935	12,205	12,282
Recognition of extended warranty deferred revenue	(2,479)	(2,108)	(4,338)	(4,270)
Balance at end of period	$ 34,854	$ 20,754	$ 34,854	$ 20,754

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Amortizable Intangible Assets

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

	June 30, 2013
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,515	$	168,339	$	190,176		6.3 years
Customer relationships and service and software maintenance contracts		144,971		72,581		72,390		8.0 years
Trade names and trademarks		33,840		12,678		21,162		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	538,326	$	254,598	$	283,728		7.0 years

	December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	357,555	$	143,126	$	214,429		6.3 years
Customer relationships and service and software maintenance contracts		144,971		63,464		81,507		8.0 years
Trade names and trademarks		33,840		10,909		22,931		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,366	$	218,499	$	318,867		7.0 years

Schedule of Estimated Intangible Asset Amortization Expense

Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:

Year	Amortization Expense
	(in thousands)
2013 (remainder)	$	36,113
2014		69,208
2015		52,458
2016		52,458
2017		46,299

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Schedule of Net Periodic Pension (Benefit) Costs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Defined Benefit Plan Disclosure
Actuarial (gain) loss			$ (1,359)	$ 3,054
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure
Service cost	852	643	1,686	1,357
Interest cost	3,281	4,125	6,575	8,185
Expected return on plan assets	(3,631)	(4,082)	(7,261)	(8,164)
Amortization of unrecognized prior service cost (benefit)	41	58	82	116
Actuarial (gain) loss	(1,123)	3,146	(1,047)	3,146
Total net periodic (benefit) cost	(580)	3,890	35	4,640
Post-Retirement Benefit Plans
Defined Benefit Plan Disclosure
Service cost	21	15	37	34
Interest cost	84	108	171	219
Amortization of unrecognized prior service cost (benefit)	(150)	(150)	(299)	(299)
Actuarial (gain) loss	(236)	(92)	(236)	(92)
Total net periodic (benefit) cost	$ (281)	$ (119)	$ (327)	$ (138)

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Schedule of Restructuring and Other Net (Detail) (Facility Exit Costs, Pre-2012 Activities, USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Facility Exit Costs | Pre-2012 Activities
Restructuring Cost and Reserve
Beginning Balance	$ 796	$ 1,084	$ 1,862
Change in estimate		(105)
Cash payments	(199)	(183)	(778)
Ending balance	$ 597	$ 796	$ 1,084

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Contractual Maturities of Available-for-Sale Marketable Securities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities
Available for sale securities, Cost	$ 802,555	$ 663,625
Available for sale securities, Fair Market Value	803,994	667,388
Due In One Year Or Less
Schedule of Available-for-sale Securities
Available for sale securities, Cost	501,007
Available for sale securities, Fair Market Value	501,148
Due After One Year Through Five Years
Schedule of Available-for-sale Securities
Available for sale securities, Cost	275,543
Available for sale securities, Fair Market Value	276,815
Due After Five Years Through Ten Years
Schedule of Available-for-sale Securities
Available for sale securities, Cost	2,968
Available for sale securities, Fair Market Value	3,024
Due After Ten Years
Schedule of Available-for-sale Securities
Available for sale securities, Cost	23,037
Available for sale securities, Fair Market Value	23,007
Available-for-sale Securities
Schedule of Available-for-sale Securities
Available for sale securities, Cost	802,555
Available for sale securities, Fair Market Value	$ 803,994

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Schedule of Segment Reporting Information by Segment Charges (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Semiconductor Test
Segment Reporting Information [Line Items]
Cost of revenues-provision for excess and obsolete inventory	$ 287	$ 5,957	$ 500	$ 6,169
Restructuring and other		286		286
Total	287	6,243	500	6,455
Wireless Test
Segment Reporting Information [Line Items]
Cost of revenues-provision for excess and obsolete inventory	1,398	1,643	4,066	2,116
Cost of revenues-inventory step-up		1,218		6,089
Total	1,398	2,861	4,066	8,205
Systems Test Group
Segment Reporting Information [Line Items]
Cost of revenues-provision for excess and obsolete inventory	290	1,753	1,209	2,642
Restructuring and other	131		375
Total	421	1,753	1,584	2,642
Corporate And Eliminations
Segment Reporting Information [Line Items]
Restructuring and other		(6,548)		(8,406)
Total		$ (6,548)		$ (8,406)

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Financial Instruments and Derivatives (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

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 June 30, 2013 and December 31, 2012.

	June 30, 2013
	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
Cash	$	115,442	$	—	$	—	$	115,442
Cash equivalents		107,988		4,171		—		112,159
Available-for-sale securities:
U.S. Treasury securities		382,871		—		—		382,871
U.S. government agency securities		—		261,598		—		261,598
Commercial paper		—		97,667		—		97,667
Corporate debt securities		—		50,161		—		50,161
Equity and debt mutual funds		11,360		—		—		11,360
Certificates of deposit and time deposits		—		257		—		257
Non-U.S. government securities		—		80		—		80
Total		617,661		413,934		—		1,031,595
Derivatives		—		7		—		7
Total	$	617,661	$	413,941	$	—	$	1,031,602

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	223,430	$	4,171	$	—	$	227,601
Marketable securities		289,230		211,918		—		501,148
Long-term marketable securities		105,001		197,845		—		302,846
Prepayments and other current assets		—		7		—		7
	$	617,661	$	413,941	$	—	$	1,031,602

	December 31, 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
Cash	$	139,354	$	—	$	—	$	139,354
Cash equivalents		183,039		16,527		—		199,566
Available-for-sale securities:
U.S. Treasury securities		312,116		—		—		312,116
U.S. government agency securities		—		217,655		—		217,655
Commercial paper		—		70,434		—		70,434
Corporate debt securities		—		55,755		—		55,755
Equity and debt mutual funds		9,717		—		—		9,717
Certificates of deposit and time deposits		—		1,627		—		1,627
Non-U.S. government securities		—		84		—		84
Total		644,226		362,082		—		1,006,308
Derivatives		—		121		—		121
Total	$	644,226	$	362,203	$	—	$	1,006,429
Liabilities
Contingent consideration	$	—	$	—	$	388	$	388
Total	$	—	$	—	$	388	$	388

Reported as follows:

	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	322,393	$	16,527	$	—	$	338,920
Marketable securities		239,192		192,324		—		431,516
Long-term marketable securities		82,641		153,231		—		235,872
Prepayments and other current assets		—		121		—		121
	$	644,226	$	362,203	$	—	$	1,006,429
Liabilities
Other accrued liabilities	$	—	$	—	$	388	$	388
	$	—	$	—	$	388	$	388

Schedule of Changes in Fair Value of Level 3 Financial Assets

Changes in the fair value of Level 3 contingent consideration for the three and six months ended June 30, 2013 were as follows:

	Contingent consideration
	(in thousands)
Balance at December 31, 2012	$	388
Payments		(313	)
Balance at March 31, 2013		75
Payments		(75	)
Balance at June 30, 2013	$	—

Schedule of Carrying Amounts and Fair Values of Financial Instruments

The carrying amounts and fair values of financial instruments at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Cash and cash equivalents	$	227,601	$	227,601	$	338,920	$	338,920
Marketable securities		803,994		803,994		667,388		667,388
Convertible debt(1)		177,532		610,726		169,896		589,000
Japan loan		2,033		2,033		3,491		3,491

(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

The following tables summarize the composition of available-for-sale marketable securities at June 30, 2013 and December 31, 2012:

	June 30, 2013
	Available-for-Sale									Fair Market Value of Investments with  Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
U.S. Treasury securities	$	382,884	$	144	$	(157	)	$	382,871	$	166,301
U.S. government agency securities		261,870		129		(401	)		261,598		130,310
Commercial paper		97,660		14		(7	)		97,667		18,722
Corporate debt securities		50,043		1,032		(914	)		50,161		11,926
Equity and debt mutual funds		9,761		1,647		(48	)		11,360		892
Certificates of deposit and time deposits		257		—		—			257		—
Non-U.S. government securities		80		—		—			80		—
	$	802,555	$	2,966	$	(1,527	)	$	803,994	$	328,151

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses
	(in thousands)
Marketable securities	$	501,007	$	170	$	(29	)	$	501,148	$	135,029
Long-term marketable securities		301,548		2,796		(1,498	)		302,846		193,122
	$	802,555	$	2,966	$	(1,527	)	$	803,994	$	328,151

	December 31, 2012
	Available-for-Sale									Fair Market Value of Investments with  Unrealized Losses
	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value
	(in thousands)
U.S. Treasury securities	$	311,915	$	216	$	(15	)	$	312,116	$	1,018
U.S. government agency securities		217,396		262		(3	)		217,655		9,018
Commercial paper		70,431		9		(6	)		70,434		25,209
Corporate debt securities		53,405		2,414		(64	)		55,755		23,255
Equity and debt mutual funds		8,767		961		(11	)		9,717		600
Certificates of deposit and time deposits		1,627		—		—			1,627		—
Non-U.S. government securities		84		—		—			84		—
	$	663,625	$	3,862	$	(99	)	$	667,388	$	59,100

Reported as follows:

	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses
	(in thousands)
Marketable securities	$	431,324	$	203	$	(11	)	$	431,516	$	41,110
Long-term marketable securities		232,301		3,659		(88	)		235,872		17,990
	$	663,625	$	3,862	$	(99	)	$	667,388	$	59,100

Contractual Maturities of Available-for-Sale Marketable Securities

The contractual maturities of available-for-sale marketable securities at June 30, 2013 were as follows:

	June 30, 2013
	Cost		Fair Market Value
	(in thousands)
Due within one year	$	501,007	$	501,148
Due after 1 year through 5 years		275,543		276,815
Due after 5 years through 10 years		2,968		3,024
Due after 10 years		23,037		23,007
Total	$	802,555	$	803,994

Schedule of Derivative Instruments in Statement of Financial Position at Fair Value

The following table summarizes the fair value of derivative instruments at June 30, 2013 and December 31, 2012.

	Balance Sheet Location		June 30, 2013		December 31, 2012
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Prepayments and other current assets	$	7	$	121
			$	7	$	121

Schedule of Effect of Derivative Instruments on Statement of Operations Recognized

The following table summarizes the effect of derivative instruments recognized in the statement of operations during the three and six months ended June 30, 2013 and July 1, 2012. The table does not reflect the corresponding (losses) gains from the remeasurement of the monetary assets and liabilities denominated in foreign currencies, which were $(1.8) million, $2.5 million, $(4.6) million, and $(0.4) million, respectively for the three and six months ended June 30, 2013 and July 1, 2012.

	Location of Gains (Losses) Recognized in Statement of Operations		For the Three Months Ended					For the Six Months Ended
			June 30, 2013		July 1, 2012			June 30, 2013		July 1, 2012
			(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Interest expense and other	$	1,818	$	(2,360	)	$	4,067	$	520
			$	1,818	$	(2,360	)	$	4,067	$	520

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012
Cash flows from operating activities:
Net income	$ 73,145	$ 144,951
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	27,552	25,578
Amortization	43,925	43,744
Stock-based compensation	18,077	21,396
Provision for excess and obsolete inventory	5,775	10,927
Deferred taxes	(15,230)	15,937
Non cash charge for the sale of inventories revalued at the date of acquisition		6,089
Contingent consideration adjustment		(8,373)
Tax benefit related to stock options and restricted stock units	(1,584)	(7,600)
Retirement plans actuarial (gains) losses	(1,359)	3,054
Impairment loss on property, plant and equipment	1,074
Other	1,077	(471)
Changes in operating assets and liabilities:
Accounts receivable	(74,785)	(216,794)
Inventories	26,373	21,446
Prepayments and other assets	(17,277)	5,027
Accounts payable and other accrued expenses	(15,149)	27,140
Deferred revenue and customer advances	(3,090)	(6,198)
Retirement plans contributions	(2,511)	(2,550)
Accrued income taxes	2,964	29,958
Net cash provided by operating activities	68,977	113,261
Cash flows from investing activities:
Purchases of property, plant and equipment	(50,798)	(57,804)
Purchases of marketable securities	(458,070)	(153,871)
Proceeds from maturities of marketable securities	268,546	86,192
Proceeds from sales of marketable securities	50,255	10,028
Net cash used for investing activities	(190,067)	(115,455)
Cash flows from financing activities:
Issuance of common stock under employee stock option and stock purchase plans	9,638	16,984
Tax benefit related to stock options and restricted stock units	1,584	7,600
Payments of long-term debt	(1,063)	(1,246)
Payments of contingent consideration	(388)	(5,824)
Net cash provided by financing activities	9,771	17,514
(Decrease) increase in cash and cash equivalents	(111,319)	15,320
Cash and cash equivalents at beginning of period	338,920	573,736
Cash and cash equivalents at end of period	$ 227,601	$ 589,056

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Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies

B. Accounting Policies

Basis of Presentation

The condensed consolidated interim financial statements include the accounts of Teradyne and its wholly-owned 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, 2012 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 U.S. Security and Exchange Commission (“SEC”) on March 1, 2013, for the year ended December 31, 2012.

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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Debt

6 Months Ended

Jun. 30, 2013

Debt

E. 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 is denominated in Japanese Yen). The loan has a term of 5 years and a fixed interest rate of 0.8%. 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 June 30, 2013, the outstanding loan principal of approximately $2.0 million is included in current 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, at the option of the holder, 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 including but not limited to Teradyne issuing a cash or stock dividend or effecting a stock split.

During the three months ended June 30, 2013, the following circumstance occurred that allows holders to convert their Notes at their option prior to December 15, 2013: 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 August 9, 2013, one holder exercised the option to convert two thousand dollars worth of Notes which Teradyne settled in cash.

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.

On March 31, 2009, 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. 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 current debt in the balance sheet at June 30, 2013. The tables below represent the components of Teradyne’s convertible senior notes:

	June 30, 2013		December 31, 2012
	(in thousands)
Debt principal	$	189,998	$	190,000
Unamortized debt discount		12,466		20,104
Net carrying amount of the convertible debt	$	177,532	$	169,896

The interest expense on Teradyne’s convertible senior notes for the three and six months ended June 30, 2013 and July 1, 2012 was as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Contractual interest expense	$	2,137	$	2,138	$	4,274	$	4,299
Amortization of the discount component and debt issue fees		4,087		3,592		8,044		7,071
Total interest expense on the convertible debt	$	6,224	$	5,730	$	12,318	$	11,370

As of June 30, 2013, the unamortized discount was $12.5 million, which will be amortized over the next nine months, and the carrying amount of the equity component was $63.4 million. As of June 30, 2013, 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 $609.7 million.

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Recently Issued Accounting Pronouncements

6 Months Ended

Jun. 30, 2013

Recently Issued Accounting Pronouncements

C. Recently Issued Accounting Pronouncements

In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This ASU is intended to enhance the understanding of the effects of netting arrangements on an entity’s financial statements, including financial instruments and derivative instruments that are either offset or subject to a master netting arrangement. The scope of this ASU includes derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing and lending arrangements. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. Teradyne adopted this ASU effective January 1, 2013. See Note D “Financial Instruments and Derivatives.”

In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” amending the disclosure requirements regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The amendment does not change the current requirement for reporting net income or other comprehensive income, but requires additional disclosures about significant amounts reclassified out of accumulated other comprehensive income including the effect of the reclassification on the related statement of operations line items. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. Teradyne adopted this amendment effective January 1, 2013. See Note I “Accumulated Other Comprehensive Income.”

On July 18, 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Under this ASU, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by unrecognized tax benefits. The provisions of this ASU are effective for interim and annual periods beginning on or after December 15, 2013. Teradyne does not expect this ASU to have a material impact on its financial position or results of operations.

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Schedule of Available for Sale Marketable Securities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	$ 802,555	$ 663,625
Available-for-sale marketable securities, Unrealized Gain	2,966	3,862
Available-for-sale marketable securities, Unrealized (Loss)	(1,527)	(99)
Available-for-sale marketable securities, Fair Market Value	803,994	667,388
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	328,151	59,100
U.S. Treasury Securities
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	382,884	311,915
Available-for-sale marketable securities, Unrealized Gain	144	216
Available-for-sale marketable securities, Unrealized (Loss)	(157)	(15)
Available-for-sale marketable securities, Fair Market Value	382,871	312,116
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	166,301	1,018
U.S. Government Agency Securities
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	261,870	217,396
Available-for-sale marketable securities, Unrealized Gain	129	262
Available-for-sale marketable securities, Unrealized (Loss)	(401)	(3)
Available-for-sale marketable securities, Fair Market Value	261,598	217,655
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	130,310	9,018
Corporate Debt Securities
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	50,043	53,405
Available-for-sale marketable securities, Unrealized Gain	1,032	2,414
Available-for-sale marketable securities, Unrealized (Loss)	(914)	(64)
Available-for-sale marketable securities, Fair Market Value	50,161	55,755
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	11,926	23,255
Commercial Paper
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	97,660	70,431
Available-for-sale marketable securities, Unrealized Gain	14	9
Available-for-sale marketable securities, Unrealized (Loss)	(7)	(6)
Available-for-sale marketable securities, Fair Market Value	97,667	70,434
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	18,722	25,209
Equity And Debt Mutual Funds
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	9,761	8,767
Available-for-sale marketable securities, Unrealized Gain	1,647	961
Available-for-sale marketable securities, Unrealized (Loss)	(48)	(11)
Available-for-sale marketable securities, Fair Market Value	11,360	9,717
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	892	600
Certificates Of Deposit And Time Deposits
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	257	1,627
Available-for-sale marketable securities, Fair Market Value	257	1,627
Non-U.S. Government Securities
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	80	84
Available-for-sale marketable securities, Fair Market Value	$ 80	$ 84

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Product Warranty (Tables)

6 Months Ended

Jun. 30, 2013

Other Accrued Liabilities

The warranty balance below is included in other accrued liabilities.

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Balance at beginning of period	$	7,075		$	8,722		$	9,786		$	8,154
Accruals for warranties issued during the period		3,684			5,649			5,107			9,425
Adjustments related to pre-existing warranties		(869	)		403			(1,798	)		143
Settlements made during the period		(2,539	)		(3,727	)		(5,744	)		(6,675	)
Balance at end of period	$	7,351		$	11,047		$	7,351		$	11,047

Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances

The extended warranty balance below is included in short- and long-term deferred revenue and customer advances.

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Balance at beginning of period	$	28,599		$	12,927		$	26,987		$	12,742
Deferral of new extended warranty revenue		8,734			9,935			12,205			12,282
Recognition of extended warranty deferred revenue		(2,479	)		(2,108	)		(4,338	)		(4,270	)
Balance at end of period	$	34,854		$	20,754		$	34,854		$	20,754

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Net Income per Common Share (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Computation of Basic and Diluted 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				For the Six Months Ended
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
	(in thousands, except per share amounts)
Net income for basic and diluted net income per share	$	66,556	$	111,387	$	73,145	$	144,951
Weighted average common shares-basic		190,569		186,573		190,128		186,205
Effect of dilutive potential common shares:
Incremental shares from assumed conversion of convertible notes(1)		23,266		22,301		23,326		22,651
Convertible note hedge warrant shares(2)		18,689		17,340		18,774		17,829
Restricted stock units		772		1,171		947		1,405
Stock options		1,554		2,160		1,615		2,247
Employee stock purchase rights		59		101		43		62
Dilutive potential common shares		44,340		43,073		44,705		44,194
Weighted average common shares-diluted		234,909		229,646		234,833		230,399
Net income per common share-basic	$	0.35	$	0.60	$	0.38	$	0.78
Net income per common share-diluted	$	0.28	$	0.49	$	0.31	$	0.63

(1) Incremental shares from assumed conversion of the convertible notes for the three and six months ended June 30, 2013 and July 1, 2012 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 the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

(2) Convertible note hedge warrant shares for the three and six months ended June 30, 2013 and July 1, 2012 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 the total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period.

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Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	$ 803,994	$ 667,388
Derivatives	7	121
Total including derivatives	1,031,602	1,006,429
Contingent consideration		388
Liabilities		388
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash and Cash equivalents	115,442	139,354
Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash and Cash equivalents	112,159	199,566
U.S. Treasury Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	382,871	312,116
U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	261,598	217,655
Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	50,161	55,755
Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	97,667	70,434
Equity And Debt Mutual Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	11,360	9,717
Certificates Of Deposit And Time Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	257	1,627
Non-U.S. Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	80	84
Subtotal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	1,031,595	1,006,308
Quoted Prices in Active Markets for Identical Instruments (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Total including derivatives	617,661	644,226
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash and Cash equivalents	115,442	139,354
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash and Cash equivalents	107,988	183,039
Quoted Prices in Active Markets for Identical Instruments (Level 1) | U.S. Treasury Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	382,871	312,116
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Equity And Debt Mutual Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	11,360	9,717
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Subtotal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	617,661	644,226
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivatives	7	121
Total including derivatives	413,941	362,203
Significant Other Observable Inputs (Level 2) | Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cash and Cash equivalents	4,171	16,527
Significant Other Observable Inputs (Level 2) | U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	261,598	217,655
Significant Other Observable Inputs (Level 2) | Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	50,161	55,755
Significant Other Observable Inputs (Level 2) | Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	97,667	70,434
Significant Other Observable Inputs (Level 2) | Certificates Of Deposit And Time Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	257	1,627
Significant Other Observable Inputs (Level 2) | Non-U.S. Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	80	84
Significant Other Observable Inputs (Level 2) | Subtotal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	413,934	362,082
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Contingent consideration		388
Liabilities		$ 388

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Stock Repurchase Program - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	1 Months Ended	31 Months Ended
	Nov. 30, 2010	Jun. 30, 2013
Stock Repurchase Program
Stock repurchase program, authorized amount	$ 200
Repurchase of stock, shares		2.6
Repurchase of stock, value		$ 31.2
Common stock average price		$ 11.84

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Reclassification Out of Accumulated Other Comprehensive Income to Statement of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jul. 01, 2012		Jun. 30, 2013		Jul. 01, 2012
Other Comprehensive Income (Loss) [Line Items]
Unrealized gains	$ 143		$ 24		$ 419		$ 490
Net income	143		24		419		490
Prior service benefit	109	[1]	92	[1]	217	[1]	183	[1]
Net income	109	[1]	92	[1]	217	[1]	183	[1]
Total reclassifications	$ 252		$ 116		$ 636		$ 673

[1] The amortization of prior service benefit is included in the computation of net periodic pension and postretirement benefit costs; see Note M "Retirement Plans."

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Stock Based Compensation - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award
Stock options term	7 years
Restricted stock unit awards to employees	1.9	1.6
Weighted average grant date fair value of restricted stock units granted	$ 16.60	$ 16.83
Number of service-based stock options granted to executive officers	0.2	0.2
Weighted average grant date fair value of stock options granted to executive officers	$ 6.09	$ 6.85
Price paid by employees for common stock purchased through employee stock purchase plan as percentage of stock price	85.00%		85.00%
Restricted Stock Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award
Period of stock granted to employees and executive officers vest in equal installments	4 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Period of stock granted to employees and executive officers vest in equal installments	4 years
Stock Purchase Rights
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average grant date fair value of stock options granted to executive officers		$ 4.09

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Debt - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended		3 Months Ended		6 Months Ended				1 Months Ended		3 Months Ended	6 Months Ended	1 Months Ended
	Mar. 31, 2009 Y	Mar. 30, 2012	Jun. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Jun. 30, 2013 Convertible Notes Hedge Warrant	Jul. 01, 2012 Convertible Notes Hedge Warrant	Jun. 30, 2013 Convertible Notes Hedge Warrant	Jul. 01, 2012 Convertible Notes Hedge Warrant	Mar. 31, 2009 Convertible Notes Hedge Warrant	Jun. 30, 2013 Convertible Senior Notes	Apr. 30, 2009 4.50% Convertible Senior Notes Due March 15, 2014	Mar. 31, 2009 4.50% Convertible Senior Notes Due March 15, 2014	Jun. 30, 2013 4.50% Convertible Senior Notes Due March 15, 2014 D	Jun. 30, 2013 4.50% Convertible Senior Notes Due March 15, 2014	Aug. 09, 2013 Subsequent Event 4.50% Convertible Senior Notes Due March 15, 2014
Debt Instrument
Borrowings from local bank	$ 10,000,000
Term of loan, years	5
Debt instrument, interest rate, stated percentage	0.80%											4.50%
Loan collateralized by real estate mortgage	6,000,000
Unsecured loan	4,000,000
Semiannual principal payments of loan		1,000,000		1,000,000
Outstanding loan principal amount			2,000,000
Aggregate principal amount			189,998,000		190,000,000							190,000,000
Senior notes maturity date												March 15, 2014
Initial conversion rate in number of shares															182.65
Additional aggregate principal amount															1,000
Initial debt conversion price			$ 5.48			$ 7.67	$ 7.67	$ 7.67	$ 7.67	$ 7.67			$ 5.48
Debt conversion premium percentage													25.00%
Last reported sale price per share of debt													$ 4.38
Initial conversion rate			The Notes may be converted, at the option of the holder, 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.
Threshold trading days														20
Threshold consecutive trading days														30 days
Threshold percentage of stock price trigger														130.00%
Stock price trigger																$ 2,000
Antidilution adjustments, shares			34,703,196			34,700,000	34,700,000	34,700,000	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			12,466,000		20,104,000						12,500,000
Amortization period of unamortized discount, months			9 months
Carrying amount of equity component			63,400,000
Debt instrument conversion price			$ 5.48
If-converted value of notes			$ 609,700,000

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accounts receivable, less allowance for doubtful accounts	$ 3,664	$ 4,118
Common stock, par value	$ 0.125	$ 0.125
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	190,721	187,908
Common stock, shares outstanding	190,721	187,908

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

Stock-Based Compensation

H. Stock-Based Compensation

Restricted stock unit awards granted to employees vest in equal installments over four years. A portion of restricted stock unit awards granted to executive officers is subject to time-based vesting and a portion 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 will be forfeited. Stock options vest in equal installments over four years, and have a term of seven years from the date of grant.

During the six months ended June 30, 2013, Teradyne granted 1.9 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.60 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.09.

During the six months ended July 1, 2012, Teradyne granted 1.6 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.83 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.85.

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

	For the Six Months Ended
	June 30, 2013			July 1, 2012
Expected life (years)		4.0			3.5
Interest rate		0.6	%		0.4	%
Volatility-historical		46.8	%		56.0	%
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.

Effective January 1, 2013, the price paid by employees for Teradyne’s common stock purchased through the employee stock purchase plan is equal to 85% of the stock price on the last business day of the purchase period.

During 2012, the price paid by employees for Teradyne’s common stock purchased through the employee stock purchase plan was equal to 85% of the lower of the stock price on the first or last business day of the purchase period.

The weighted-average fair value of employee stock purchase rights granted in the six months ended July 1, 2012 was $4.09. The fair value of the employees’ purchase rights granted in the six months ended July 1, 2012 was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Six Months Ended July 1, 2012
Expected life (years)		0.5
Interest rate		0.06	%
Volatility-historical		52.6	%
Dividend yield		0.0	%

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jul. 01, 2012		Jun. 30, 2013		Jul. 01, 2012
Net income	$ 66,556		$ 111,387		$ 73,145		$ 144,951
Other comprehensive income:
Net unrealized (losses) gains on marketable securities arising during period	(2,268)		452		(1,905)		1,196
Less: Reclassification adjustment for net gains included in net income	(143)		(24)		(419)		(490)
Net change	(2,411)		428		(2,324)		706
Defined benefit pension and post-retirement plans:
Amortization of prior service net benefit included in net periodic pension and post-retirement (benefit) costs	(109)	[1]	(92)	[1]	(217)	[1]	(183)	[1]
Other comprehensive (loss) income	(2,520)		336		(2,541)		523
Comprehensive income	$ 64,036		$ 111,723		$ 70,604		$ 145,474

[1] The amortization of prior service benefit is included in the computation of net periodic pension and postretirement benefit costs; see Note M "Retirement Plans."

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Schedule of Estimated Intangible Asset Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Finite-Lived Intangible Assets
2013 (remainder)	$ 36,113
2014	69,208
2015	52,458
2016	52,458
2017	$ 46,299

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 227,601	$ 338,920
Marketable securities	501,148	431,516
Accounts receivable, less allowance for doubtful accounts of $3,664 and $4,118 at June 30, 2013 and December 31, 2012, respectively	228,208	153,423
Inventories:
Parts	71,552	89,598
Assemblies in process	25,124	32,303
Finished goods	31,528	17,509
Inventory, Net, Total	128,204	139,410
Deferred tax assets	83,789	77,305
Prepayments and other current assets	113,253	95,487
Total current assets	1,282,203	1,236,061
Net property, plant and equipment	264,876	265,782
Long-term marketable securities	302,846	235,872
Other assets	19,051	20,209
Retirement plans assets	4,194	3,282
Intangible assets, net	283,728	318,867
Goodwill	349,272	349,272
Total assets	2,506,170	2,429,345
Current liabilities:
Accounts payable	67,125	58,324
Accrued employees' compensation and withholdings	73,756	86,264
Deferred revenue and customer advances	76,254	81,357
Other accrued liabilities	54,684	57,249
Accrued income taxes	13,686	12,306
Current debt	179,565	2,328
Total current liabilities	465,070	297,828
Long-term deferred revenue and customer advances	18,240	16,227
Retirement plans liabilities	94,004	94,373
Deferred tax liabilities	41,429	50,201
Long-term other accrued liabilities	20,934	21,302
Long-term debt		171,059
Total liabilities	639,677	650,990
Commitments and contingencies (Note N)
SHAREHOLDERS' EQUITY
Common stock, $0.125 par value, 1,000,000 shares authorized, 190,721 shares and 187,908 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively	23,840	23,488
Additional paid-in capital	1,364,944	1,347,762
Accumulated other comprehensive income	3,279	5,820
Retained earnings	474,430	401,285
Total shareholders' equity	1,866,493	1,778,355
Total liabilities and shareholders' equity	$ 2,506,170	$ 2,429,345

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Black Scholes Option Pricing Model (Detail) (Stock Options)	6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Expected life (years)	4 years	3 years 6 months
Interest rate	0.60%	0.40%
Volatility-historical	46.80%	56.00%
Dividend yield	0.00%	0.00%

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Stock Option

Schedule of Estimated Fair Value of Stock Options Assumptions

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

	For the Six Months Ended
	June 30, 2013			July 1, 2012
Expected life (years)		4.0			3.5
Interest rate		0.6	%		0.4	%
Volatility-historical		46.8	%		56.0	%
Dividend yield		0.0	%		0.0	%

Stock Purchase Rights

Schedule of Estimated Fair Value of Stock Options Assumptions

The fair value of the employees’ purchase rights granted in the six months ended July 1, 2012 was estimated using the Black-Scholes option-pricing model with the following assumptions:

	For the Six Months Ended July 1, 2012
Expected life (years)		0.5
Interest rate		0.06	%
Volatility-historical		52.6	%
Dividend yield		0.0	%

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Stock Repurchase Program

6 Months Ended

Jun. 30, 2013

Stock Repurchase Program

Q. Stock Repurchase Program

In November 2010, Teradyne’s board of directors authorized a stock repurchase program for up to $200 million. In the three and six months ended June 30, 2013 and July 1, 2012, Teradyne did not repurchase any shares. Cumulatively, as of June 30, 2013, 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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Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012	Dec. 31, 2012
Fair Value, Option, Quantitative Disclosures
Derivatives asset not designated as hedging instruments	$ 7		$ 7		$ 121
Foreign exchange contracts derivatives not designated as hedging instruments, Gains (Losses) Recognized in Statement of Operations	1,818	(2,360)	4,067	520
Not Designated as Hedging Instrument | Foreign Exchange Contract | Prepayments and other current assets
Fair Value, Option, Quantitative Disclosures
Derivatives asset not designated as hedging instruments	7		7		121
Interest Expense and Other
Fair Value, Option, Quantitative Disclosures
Foreign exchange contracts derivatives not designated as hedging instruments, Gains (Losses) Recognized in Statement of Operations	$ 1,818	$ (2,360)	$ 4,067	$ 520

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Accumulated Other Comprehensive Income Balances (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Other Comprehensive Income (Loss) [Line Items]
Retirement plans prior service benefit, tax	$ (125)	$ (125)
Unrealized gains on marketable securities, tax	$ 835	$ 835

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Retirement Plans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
United States Pension Plans of US Entity, Defined Benefit
Defined Benefit Plan Disclosure
Contribution to defined benefit pension plans	$ 0.9
Foreign Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure
Contribution to defined benefit pension plans	$ 1.0

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Schedule of Changes in Fair Value of Level Three Contingent Consideration (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2013	Mar. 31, 2013
Fair Value Measurements
Beginning Balance	$ 75	$ 388
Payments	(75)	(313)
Ending Balance		$ 75

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Information

Segment information is as follows:

	Semiconductor Test		Wireless Test		Systems Test		Corporate and Eliminations			Consolidated
	(in thousands)
Three months ended June 30, 2013:
Net revenues	$	292,431	$	99,386	$	37,072	$	—		$	428,889
Income (loss) before income taxes(1)(2)		58,606		23,913		779		(2,941	)		80,357
Three months ended July 1, 2012:
Net revenues	$	365,058	$	111,928	$	71,298	$	—		$	548,284
Income (loss) before income taxes(1)(2)		91,249		51,139		11,628		(2,024	)		151,992
Six months ended June 30, 2013:
Net revenues	$	503,937	$	132,984	$	72,335	$	—		$	709,256
Income (loss) before income taxes(1)(2)		72,372		13,916		2,309		(9,666	)		78,931
Six months ended July 1, 2012:
Net revenues	$	632,646	$	143,256	$	169,050	$	—		$	944,952
Income (loss) before income taxes(1)(2)		126,247		38,827		33,606		(5,444	)		193,236

(1) Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations.

(2) Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and six months ended June 30, 2013 and July 1, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows:

Semiconductor Test

Schedule of Segment Reporting Information by Segment Charges

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

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	287	$	5,957	$	500	$	6,169
Restructuring and other		—		286		—		286
Total	$	287	$	6,243	$	500	$	6,455

Wireless Test

Schedule of Segment Reporting Information by Segment Charges

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

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	1,398	$	1,643	$	4,066	$	2,116
Cost of revenues—inventory step-up		—		1,218		—		6,089
Total	$	1,398	$	2,861	$	4,066	$	8,205

Systems Test Group

Schedule of Segment Reporting Information by Segment Charges

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

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	290	$	1,753	$	1,209	$	2,642
Restructuring and other		131		—		375		—
Total	$	421	$	1,753	$	1,584	$	2,642

Corporate And Eliminations

Schedule of Segment Reporting Information by Segment Charges

Included in Corporate and Eliminations are credits for the following:

	For the Three Months Ended					For the Six Months Ended
	June 30,  2013		July 1,  2012			June 30,  2013		July 1,  2012
	(in thousands)
Restructuring and other	$	—	$	(6,548	)	$	—	$	(8,406	)
Total	$	—	$	(6,548	)	$	—	$	(8,406	)

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Financial Instruments and Derivatives - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012	Dec. 31, 2012
Financial Instruments and Fair Value [Line Items]
Available-for-sale securities, realized gain	$ 100,000	$ 300,000	$ 300,000	$ 600,000
Fair market value of investments with unrealized losses	328,151,000		328,151,000		59,100,000
Available-for-sale marketable securities, fair market value of investments with unrealized losses greater than one year	2,100,000		2,100,000
Available-for-sale marketable securities, fair market value of investments with unrealized losses less than one year	326,100,000		326,100,000
Gain (loss) on foreign currency transactions	(1,800,000)	(4,600,000)	2,500,000	(400,000)
Foreign Exchange Contract
Financial Instruments and Fair Value [Line Items]
Notional amount of foreign exchange contracts hedging monetary assets and liabilities	$ 54,000,000		$ 54,000,000		$ 64,100,000

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Product Warranty

6 Months Ended

Jun. 30, 2013

Product Warranty

G. 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 warranty balance below is included in other accrued liabilities.

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Balance at beginning of period	$	7,075		$	8,722		$	9,786		$	8,154
Accruals for warranties issued during the period		3,684			5,649			5,107			9,425
Adjustments related to pre-existing warranties		(869	)		403			(1,798	)		143
Settlements made during the period		(2,539	)		(3,727	)		(5,744	)		(6,675	)
Balance at end of period	$	7,351		$	11,047		$	7,351		$	11,047

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

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Balance at beginning of period	$	28,599		$	12,927		$	26,987		$	12,742
Deferral of new extended warranty revenue		8,734			9,935			12,205			12,282
Recognition of extended warranty deferred revenue		(2,479	)		(2,108	)		(4,338	)		(4,270	)
Balance at end of period	$	34,854		$	20,754		$	34,854		$	20,754

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Restructuring and Other - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Restructuring Cost and Reserve
Business acquisition, contingent consideration	$ 6.5		$ 8.4
Remaining accrual for lease payments		$ 0.6
Lease expiration date		Oct. 31, 2013

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Loss

At June 30, 2013 and December 31, 2012, the accumulated other comprehensive income balances were as follows:

	June 30, 2013		December 31, 2012
	(in thousands)
Retirement plans prior service benefit, net of tax of $(125) and $(125)	$	2,678	$	2,895
Unrealized gains on marketable securities, net of tax of $835 and $835		601		2,925
Total accumulated other comprehensive income	$	3,279	$	5,820

Reclassifications out of Accumulated Other Comprehensive Income

Reclassifications out of accumulated other comprehensive income to the statement of operations for the three and six months ended June 30, 2013 and July 1, 2012, were as follows:

Details about Accumulated Other Comprehensive Income Components	For the Three Months Ended				For the Six Months Ended				Affected Line Item in the Statements of Operations
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
	(in thousands)				(in thousands)
Available-for-sale marketable securities
Unrealized gains	$	143	$	24	$	419	$	490		Interest income
	$	143	$	24	$	419	$	490		Net income
Amortization of defined benefit pension and postretirement plans
Prior service benefit	$	109	$	92	$	217	$	183		(a)
	$	109	$	92	$	217	$	183		(a)
Total reclassifications	$	252	$	116	$	636	$	673		Net income

(a) The amortization of prior service benefit is included in the computation of net periodic pension and postretirement benefit costs; see Note M “Retirement Plans.”

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Schedule of Reported Available for Sale Marketable Securities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	$ 802,555	$ 663,625
Available-for-sale marketable securities, Unrealized Gain	2,966	3,862
Available-for-sale marketable securities, Unrealized (Loss)	(1,527)	(99)
Available-for-sale marketable securities, Fair Market Value	803,994	667,388
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	328,151	59,100
Marketable securities
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	501,007	431,324
Available-for-sale marketable securities, Unrealized Gain	170	203
Available-for-sale marketable securities, Unrealized (Loss)	(29)	(11)
Available-for-sale marketable securities, Fair Market Value	501,148	431,516
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	135,029	41,110
Long-term marketable securities
Schedule of Available-for-sale Securities
Available-for-sale marketable securities, Cost	301,548	232,301
Available-for-sale marketable securities, Unrealized Gain	2,796	3,659
Available-for-sale marketable securities, Unrealized (Loss)	(1,498)	(88)
Available-for-sale marketable securities, Fair Market Value	302,846	235,872
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses	$ 193,122	$ 17,990

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Intangible Assets

6 Months Ended

Jun. 30, 2013

Intangible Assets

J. Intangible Assets

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

	June 30, 2013
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	358,515	$	168,339	$	190,176		6.3 years
Customer relationships and service and software maintenance contracts		144,971		72,581		72,390		8.0 years
Trade names and trademarks		33,840		12,678		21,162		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	538,326	$	254,598	$	283,728		7.0 years

	December 31, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life
	(in thousands)
Developed technology	$	357,555	$	143,126	$	214,429		6.3 years
Customer relationships and service and software maintenance contracts		144,971		63,464		81,507		8.0 years
Trade names and trademarks		33,840		10,909		22,931		9.0 years
Customer backlog		1,000		1,000		—		0.4 years
Total intangible assets	$	537,366	$	218,499	$	318,867		7.0 years

Aggregate intangible asset amortization expense was $18.1 million and $36.1 million, respectively, for the three and six months ended June 30, 2013 and $18.4 million and $36.9 million, respectively, for the three and six months ended July 1, 2012. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows:

Year	Amortization Expense
	(in thousands)
2013 (remainder)	$	36,113
2014		69,208
2015		52,458
2016		52,458
2017		46,299

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Deferred Revenue and Customer Advances

6 Months Ended

Jun. 30, 2013

Deferred Revenue and Customer Advances

F. 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.

	June 30, 2013		December 31, 2012
	(in thousands)
Maintenance, training and extended warranty	$	56,499	$	51,198
Customer advances		29,025		39,613
Undelivered elements		8,970		6,773
Total deferred revenue and customer advances	$	94,494	$	97,584

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The Company

6 Months Ended

Jun. 30, 2013

The Company

A. The Company

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

• semiconductor test (“Semiconductor Test”) systems;

• wireless test (“Wireless Test”) systems; and

• 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”).

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Schedule of Estimated Fair Value of Stock Options Assumptions (Detail) (Stock Purchase Rights)	6 Months Ended
	Jul. 01, 2012
Stock Purchase Rights
Share-based Compensation Arrangement by Share-based Payment Award
Expected life (years)	6 months
Interest rate	0.06%
Volatility-historical	52.60%
Dividend yield	0.00%

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Interest Expense on Convertible Senior Notes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Debt Instrument
Contractual interest expense	$ 2,137	$ 2,138	$ 4,274	$ 4,299
Amortization of the discount component and debt issue fees	4,087	3,592	8,044	7,071
Total interest expense on the convertible debt	$ 6,224	$ 5,730	$ 12,318	$ 11,370

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Restructuring and Other (Tables)

6 Months Ended

Jun. 30, 2013

Restructuring and Other

	Facility Exit Costs
	(in thousands)
Pre-2012 Activities
Balance at December 31, 2011	$	1,862
Cash payments		(778	)
Balance at December 31, 2012		1,084
Change in estimate		(105	)
Cash payments		(183	)
Balance at March 31, 2013		796
Cash payments		(199	)
Balance at June 30, 2013	$	597

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Commitments and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Purchase Commitment, Excluding Long-term Commitment
Aggregate purchase commitments	$ 265.0
Purchase commitments less than one year	$ 261.7
Maximum
Purchase Commitment, Excluding Long-term Commitment
Purchase commitments period	1 year

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Net Income Per Common Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jul. 01, 2012		Jun. 30, 2013		Jul. 01, 2012
Net Income Loss Per Common Share
Net income for basic and diluted net income per share	$ 66,556		$ 111,387		$ 73,145		$ 144,951
Weighted average common shares-basic	190,569		186,573		190,128		186,205
Incremental shares from assumed conversion of convertible notes	23,266	[1]	22,301	[1]	23,326	[1]	22,651	[1]
Convertible note hedge warrant shares	18,689	[2]	17,340	[2]	18,774	[2]	17,829	[2]
Restricted stock units	772		1,171		947		1,405
Stock options	1,554		2,160		1,615		2,247
Employee stock purchase rights	59		101		43		62
Dilutive potential common shares	44,340		43,073		44,705		44,194
Weighted average common shares-diluted	234,909		229,646		234,833		230,399
Net income per common share-basic	$ 0.35		$ 0.60		$ 0.38		$ 0.78
Net income per common share-diluted	$ 0.28		$ 0.49		$ 0.31		$ 0.63

[1] Incremental shares from assumed conversion of the convertible notes for the three and six months ended June 30, 2013 and July 1, 2012 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 the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period.

[2] Convertible note hedge warrant shares for the three and six months ended June 30, 2013 and July 1, 2012 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 the total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period.

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Retirement Plans

6 Months Ended

Jun. 30, 2013

Retirement Plans

M. 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.

Net periodic pension (benefit) cost was comprised of the following:

	For the Three Months Ended						For the Six Months Ended
	June 30,  2013			July 1,  2012			June 30,  2013			July 1,  2012
	(in thousands)
Service cost	$	852		$	643		$	1,686		$	1,357
Interest cost		3,281			4,125			6,575			8,185
Expected return on plan assets		(3,631	)		(4,082	)		(7,261	)		(8,164	)
Amortization of unrecognized prior service cost		41			58			82			116
Actuarial (gain) loss		(1,123	)		3,146			(1,047	)		3,146
Total net periodic pension (benefit) cost	$	(580	)	$	3,890		$	35		$	4,640

In the six months ended June 30, 2013, Teradyne contributed $0.9 million to the U.S. supplemental executive defined benefit pension plan and $1.0 million to certain qualified plans for non-U.S. subsidiaries.

Postretirement Benefit Plan

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.

Teradyne’s net periodic postretirement benefit was comprised of the following:

	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(in thousands)
Service cost	$	21		$	15		$	37		$	34
Interest cost		84			108			171			219
Amortization of unrecognized prior service benefit		(150	)		(150	)		(299	)		(299	)
Actuarial gain		(236	)		(92	)		(236	)		(92	)
Total net periodic post-retirement benefit	$	(281	)	$	(119	)	$	(327	)	$	(138	)

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Income

I. Accumulated Other Comprehensive Income

At June 30, 2013 and December 31, 2012, the accumulated other comprehensive income balances were as follows:

	June 30, 2013		December 31, 2012
	(in thousands)
Retirement plans prior service benefit, net of tax of $(125) and $(125)	$	2,678	$	2,895
Unrealized gains on marketable securities, net of tax of $835 and $835		601		2,925
Total accumulated other comprehensive income	$	3,279	$	5,820

Reclassifications out of accumulated other comprehensive income to the statement of operations for the three and six months ended June 30, 2013 and July 1, 2012, were as follows:

Details about Accumulated Other Comprehensive Income Components	For the Three Months Ended				For the Six Months Ended				Affected Line Item in the Statements of Operations
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
	(in thousands)				(in thousands)
Available-for-sale marketable securities
Unrealized gains	$	143	$	24	$	419	$	490		Interest income
	$	143	$	24	$	419	$	490		Net income
Amortization of defined benefit pension and postretirement plans
Prior service benefit	$	109	$	92	$	217	$	183		(a)
	$	109	$	92	$	217	$	183		(a)
Total reclassifications	$	252	$	116	$	636	$	673		Net income

(a) The amortization of prior service benefit is included in the computation of net periodic pension and postretirement benefit costs; see Note M “Retirement Plans.”

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Schedule of Segment Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jul. 01, 2012		Jun. 30, 2013		Jul. 01, 2012
Segment Reporting Information [Line Items]
Net revenues	$ 428,889		$ 548,284		$ 709,256		$ 944,952
Income (loss) before income taxes	80,357	[1],[2]	151,992	[1],[2]	78,931	[1],[2]	193,236	[1],[2]
Semiconductor Test
Segment Reporting Information [Line Items]
Net revenues	292,431		365,058		503,937		632,646
Income (loss) before income taxes	58,606	[1],[2]	91,249	[1],[2]	72,372	[1],[2]	126,247	[1],[2]
Wireless Test
Segment Reporting Information [Line Items]
Net revenues	99,386		111,928		132,984		143,256
Income (loss) before income taxes	23,913	[1],[2]	51,139	[1],[2]	13,916	[1],[2]	38,827	[1],[2]
Systems Test Group
Segment Reporting Information [Line Items]
Net revenues	37,072		71,298		72,335		169,050
Income (loss) before income taxes	779	[1],[2]	11,628	[1],[2]	2,309	[1],[2]	33,606	[1],[2]
Corporate And Eliminations
Segment Reporting Information [Line Items]
Income (loss) before income taxes	$ (2,941)	[1],[2]	$ (2,024)	[1],[2]	$ (9,666)	[1],[2]	$ (5,444)	[1],[2]

[1] Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and six months ended June 30, 2013 and July 1, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows:

[2] Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations.

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Segment Information

6 Months Ended

Jun. 30, 2013

Segment Information

P. Segment Information

Teradyne has three operating segments (Semiconductor Test, Wireless Test and Systems 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 Wireless Test segment includes operations related to design, manufacturing and marketing of wireless test products and services. The Systems Test segment includes operations related to design, manufacturing and marketing of products and services for military/aerospace instrumentation test, storage test and circuit-board test. 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, 2012. Segment information is as follows:

	Semiconductor Test		Wireless Test		Systems Test		Corporate and Eliminations			Consolidated
	(in thousands)
Three months ended June 30, 2013:
Net revenues	$	292,431	$	99,386	$	37,072	$	—		$	428,889
Income (loss) before income taxes(1)(2)		58,606		23,913		779		(2,941	)		80,357
Three months ended July 1, 2012:
Net revenues	$	365,058	$	111,928	$	71,298	$	—		$	548,284
Income (loss) before income taxes(1)(2)		91,249		51,139		11,628		(2,024	)		151,992
Six months ended June 30, 2013:
Net revenues	$	503,937	$	132,984	$	72,335	$	—		$	709,256
Income (loss) before income taxes(1)(2)		72,372		13,916		2,309		(9,666	)		78,931
Six months ended July 1, 2012:
Net revenues	$	632,646	$	143,256	$	169,050	$	—		$	944,952
Income (loss) before income taxes(1)(2)		126,247		38,827		33,606		(5,444	)		193,236

(1) Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations.

(2) Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and six months ended June 30, 2013 and July 1, 2012 that include restructuring and other, 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				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	287	$	5,957	$	500	$	6,169
Restructuring and other		—		286		—		286
Total	$	287	$	6,243	$	500	$	6,455

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

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	1,398	$	1,643	$	4,066	$	2,116
Cost of revenues—inventory step-up		—		1,218		—		6,089
Total	$	1,398	$	2,861	$	4,066	$	8,205

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

	For the Three Months Ended				For the Six Months Ended
	June 30,  2013		July 1,  2012		June 30,  2013		July 1,  2012
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	290	$	1,753	$	1,209	$	2,642
Restructuring and other		131		—		375		—
Total	$	421	$	1,753	$	1,584	$	2,642

Included in Corporate and Eliminations are credits for the following:

	For the Three Months Ended					For the Six Months Ended
	June 30,  2013		July 1,  2012			June 30,  2013		July 1,  2012
	(in thousands)
Restructuring and other	$	—	$	(6,548	)	$	—	$	(8,406	)
Total	$	—	$	(6,548	)	$	—	$	(8,406	)

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies

N. Commitments and Contingencies

Purchase Commitments

As of June 30, 2013, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments aggregate to approximately $265.0 million, of which $261.7 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, other than set forth herein, the ultimate disposition of these matters will not have a material adverse effect on Teradyne’s results of operations, financial condition or cash flows.

On May 17, 2013, Boston Semi Equipment (“BSE”) filed a complaint against Teradyne for antitrust violations and unfair business practices alleging that Teradyne is excluding BSE from competing in the market for the sale of reconfigured Teradyne equipment and the market for the repair of Teradyne equipment. BSE seeks unspecified damages and an injunction. Teradyne has filed a motion to dismiss the complaint. Teradyne believes it has meritorious defenses against this claim and intends to vigorously defend against it. While it is not possible to predict or determine the outcomes of the unsettled claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with this action are unlikely to have a material adverse effect on its consolidated financial position, but could possibly be material to its consolidated results of operations and of cash flows of any one period.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 02, 2013
Document Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
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		191,459,202

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Income Taxes

6 Months Ended

Jun. 30, 2013

Income Taxes

O. Income Taxes

The effective tax rate for the three months ended June 30, 2013 and July 1, 2012 was 17% and 27%, respectively. The decrease in Teradyne’s tax rate for the three months ended June 30, 2013 compared to the three months ended July 1, 2012, was primarily the result of the 2013 U.S. federal research and development tax credit and utilization of foreign tax credits.

The effective tax rate for the six months ended June 30, 2013 and July 1, 2012 was 7% and 25%, retrospectively. The decrease in Teradyne’s tax rate for the six months ended June 30, 2013 compared to the six months ended July 1, 2012, was primarily the result of recognizing the tax benefit attributable to the 2012 U.S. federal research and development tax credit retrospectively reinstated under the American Taxpayer Relief Act of 2012, 2013 U.S. federal research and development tax credit and utilization of foreign tax credits.

The effective tax rate for the three months and six months ended June 30, 2013 is lower than the 35% U.S. statutory federal tax rate primarily due to the research and development credit and the effect of foreign income taxed at a rate lower than the U.S. statutory rate

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Net Income Per Common Share - Additional Information (Detail) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012
Net Income Loss Per Common Share
Exercise of stock options	0.5	0.3	0.5	0.3
Restricted stock units exercise to purchase shares		0.1		0.1

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Net Income Per Common Share (Parenthetical) (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jul. 01, 2012	Jun. 30, 2013	Jul. 01, 2012	Mar. 31, 2009
Net Income Loss Per Common Share
Initial debt conversion price	$ 5.48		$ 5.48
Shares that would be issued upon conversion			34,703,196
Convertible Notes
Net Income Loss Per Common Share
Initial debt conversion price	$ 5.48	$ 5.48	$ 5.48	$ 5.48
Shares that would be issued upon conversion	34,700,000	34,700,000	34,700,000	34,700,000
Convertible Notes Hedge Warrant
Net Income Loss Per Common Share
Initial debt conversion price	$ 7.67	$ 7.67	$ 7.67	$ 7.67	$ 7.67
Shares that would be issued upon conversion	34,700,000	34,700,000	34,700,000	34,700,000