Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jul. 01, 2018

Changes in Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), which are presented net of tax, consist of the following:

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Retirement Plans Prior Service Credit			Total
	(in thousands)
Six Months Ended July 1, 2018
Balance at December 31, 2017, net of tax of $0, $1,815,  $(932), respectively	$	15,919		$	1,362		$	1,495		$	18,776
Other comprehensive loss before reclassifications, net of tax of $0, $(744), $0, respectively		(18,781	)		(2,489	)		—			(21,270	)
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $0, $11, $(35), respectively		—			1,469			(123	)		1,346
Net current period other comprehensive loss, net of tax of $0, $(733), $(35), respectively		(18,781	)		(1,020	)		(123	)		(19,924	)
Reclassification of tax effects resulting of the Tax Reform Act, $0, $(691), $(78), respectively (a)		—			691			78			769
Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively (b)		—			(3,125	)		—			(3,125	)
Balance at July 1, 2018, net of tax of $0, $(511), $(1,045), respectively	$	(2,862	)	$	(2,092	)	$	1,450		$	(3,504	)

(a) In the six months ended July 1, 2018, Teradyne early adopted the ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” As a result, the stranded tax effects resulting from the Tax Reform Act enacted in December 2017 were reclassified from accumulated other comprehensive income to retained earnings.

(b) In the six months ended July 1, 2018, Teradyne adopted the ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” See Note B: “Accounting Policies.”

	Foreign Currency Translation Adjustments			Unrealized Gains (Losses) on Marketable Securities			Retirement Plans Prior Service Credit			Total
	(in thousands)
Six Months Ended July 2, 2017
Balance at December 31, 2016, net of tax of $0, $209, $(778), respectively	$	(21,921	)	$	(60	)	$	1,767		$	(20,214	)
Other comprehensive income before reclassifications, net of tax of $0, $1,185, $0, respectively		24,944			1,498			—			26,442
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(106), $(77), respectively		—			(177	)		(136	)		(313	)
Net current period other comprehensive income (loss), net of tax of $0, $1,079, $(77), respectively		24,944			1,321			(136	)		26,129
Balance at July 2, 2017, net of tax of $0, $1,288, $(855), respectively	$	3,023		$	1,261		$	1,631		$	5,915

Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations

Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and six months ended July 1, 2018 and July 2, 2017 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
	July 1, 2018		July 2, 2017		July 1, 2018			July 2, 2017
	(in thousands)
Available-for-sale marketable securities:
Unrealized gains (losses), net of tax of $68, $42, $(11), $106, respectively	$	199	$	83	$	(1,469	)	$	177	Interest income and Interest (expense)
Defined benefit pension and postretirement plans:
Amortization of prior service benefit, net of tax of $18, $38, $35, $77, respectively		61		68		123			136	(a)
Total reclassifications, net of tax of $86, $80, $24, $183, respectively	$	260	$	151	$	(1,346	)	$	313	Net income

(a) The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit. See Note P: “Retirement Plans.”