Financial Instruments (Tables)
|
6 Months Ended |
Jul. 03, 2022 |
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 July 3, 2022 and December 31, 2021.
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| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
447,312 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
447,312 |
|
Cash equivalents |
|
|
95,068 |
|
|
|
29,643 |
|
|
|
— |
|
|
|
124,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper |
|
|
— |
|
|
|
150,443 |
|
|
|
— |
|
|
|
150,443 |
|
U.S. Treasury securities |
|
|
— |
|
|
|
73,100 |
|
|
|
— |
|
|
|
73,100 |
|
Corporate debt securities |
|
|
— |
|
|
|
49,344 |
|
|
|
— |
|
|
|
49,344 |
|
Debt mutual funds |
|
|
6,514 |
|
|
|
— |
|
|
|
— |
|
|
|
6,514 |
|
U.S. government agency securities |
|
|
— |
|
|
|
4,693 |
|
|
|
— |
|
|
|
4,693 |
|
Certificates of deposit and time deposits |
|
|
— |
|
|
|
1,261 |
|
|
|
— |
|
|
|
1,261 |
|
Non-U.S. government securities |
|
|
— |
|
|
|
546 |
|
|
|
— |
|
|
|
546 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds |
|
|
35,944 |
|
|
|
— |
|
|
|
— |
|
|
|
35,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
584,838 |
|
|
$ |
309,030 |
|
|
$ |
— |
|
|
$ |
893,868 |
|
Derivative assets |
|
|
— |
|
|
|
103 |
|
|
|
— |
|
|
|
103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
584,838 |
|
|
$ |
309,133 |
|
|
$ |
— |
|
|
$ |
893,971 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
$ |
— |
|
|
$ |
233 |
|
|
$ |
— |
|
|
$ |
233 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
— |
|
|
$ |
233 |
|
|
$ |
— |
|
|
$ |
233 |
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| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
542,380 |
|
|
$ |
29,643 |
|
|
$ |
— |
|
|
$ |
572,023 |
|
Marketable securities |
|
|
— |
|
|
|
209,846 |
|
|
|
— |
|
|
|
209,846 |
|
Long-term marketable securities |
|
|
42,458 |
|
|
|
69,541 |
|
|
|
— |
|
|
|
111,999 |
|
Prepayments and other current assets |
|
|
— |
|
|
|
103 |
|
|
|
— |
|
|
|
103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
584,838 |
|
|
$ |
309,133 |
|
|
$ |
— |
|
|
$ |
893,971 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Liabilities |
|
|
. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
$ |
— |
|
|
$ |
233 |
|
|
$ |
— |
|
|
$ |
233 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
$ |
— |
|
|
$ |
233 |
|
|
$ |
— |
|
|
$ |
233 |
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| |
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|
|
|
|
|
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|
|
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|
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|
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Cash |
|
$ |
628,740 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
628,740 |
|
Cash equivalents |
|
|
412,212 |
|
|
|
81,247 |
|
|
|
— |
|
|
|
493,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
Commercial paper |
|
|
— |
|
|
|
189,620 |
|
|
|
— |
|
|
|
189,620 |
|
U.S. Treasury securities |
|
|
— |
|
|
|
77,789 |
|
|
|
— |
|
|
|
77,789 |
|
Corporate debt securities |
|
|
— |
|
|
|
56,901 |
|
|
|
— |
|
|
|
56,901 |
|
Debt mutual funds |
|
|
7,971 |
|
|
|
— |
|
|
|
— |
|
|
|
7,971 |
|
U.S. government agency securities |
|
|
— |
|
|
|
4,610 |
|
|
|
— |
|
|
|
4,610 |
|
Certificates of deposit and time deposits |
|
|
— |
|
|
|
1,356 |
|
|
|
— |
|
|
|
1,356 |
|
Non-U.S. government securities |
|
|
— |
|
|
|
589 |
|
|
|
— |
|
|
|
589 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Funds |
|
|
39,253 |
|
|
|
— |
|
|
|
— |
|
|
|
39,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,088,176 |
|
|
$ |
412,112 |
|
|
$ |
— |
|
|
$ |
1,500,288 |
|
Derivative assets |
|
|
— |
|
|
|
92 |
|
|
|
— |
|
|
|
92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,088,176 |
|
|
$ |
412,204 |
|
|
$ |
— |
|
|
$ |
1,500,380 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
|
— |
|
|
|
118 |
|
|
|
— |
|
|
|
118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
— |
|
|
$ |
118 |
|
|
$ |
— |
|
|
$ |
118 |
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| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,040,952 |
|
|
$ |
81,247 |
|
|
$ |
— |
|
|
$ |
1,122,199 |
|
Marketable securities |
|
|
— |
|
|
|
244,231 |
|
|
|
— |
|
|
|
244,231 |
|
Long-term marketable securities |
|
|
47,224 |
|
|
|
86,634 |
|
|
|
— |
|
|
|
133,858 |
|
Prepayments and other current assets |
|
|
— |
|
|
|
92 |
|
|
|
— |
|
|
|
92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,088,176 |
|
|
$ |
412,204 |
|
|
$ |
— |
|
|
$ |
1,500,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
$ |
— |
|
|
$ |
118 |
|
|
$ |
— |
|
|
$ |
118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
— |
|
|
$ |
118 |
|
|
$ |
— |
|
|
$ |
118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Changes in Fair Value of Level 3 Contingent Consideration |
Changes in the fair value of Level 3 contingent consideration for the six months ended July 3, 2022, and July 4, 2021 were as follows:
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| |
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|
|
|
|
Balance at beginning of period |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,227 |
|
Fair value adjustment (a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,227 |
) |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
In the six months ended July 4, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. |
|
Schedule of Carrying Amounts and Fair Values of Financial Instruments |
The carrying amounts and fair values of Teradyne’s financial instruments at July 3, 2022 and December 31, 2021 were as follows:
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| |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
572,023 |
|
|
$ |
572,023 |
|
|
$ |
1,122,199 |
|
|
$ |
1,122,199 |
|
Marketable securities |
|
|
321,845 |
|
|
|
321,845 |
|
|
|
378,089 |
|
|
|
378,089 |
|
Derivative assets |
|
|
103 |
|
|
|
103 |
|
|
|
92 |
|
|
|
92 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
|
233 |
|
|
|
233 |
|
|
|
118 |
|
|
|
118 |
|
Convertible debt |
|
|
74,428 |
|
|
|
233,339 |
|
|
|
108,426 |
|
|
|
604,648 |
|
|
Schedule of Available-for-Sale Marketable Securities |
The following table summarizes the composition of marketable securities at July 3, 2022:
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| |
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|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper |
|
$ |
150,695 |
|
|
$ |
|
|
|
$ |
(260 |
) |
|
$ |
150,443 |
|
|
$ |
137,162 |
|
U.S. Treasury securities |
|
|
75,962 |
|
|
|
42 |
|
|
|
(2,904 |
) |
|
|
73,100 |
|
|
|
71,861 |
|
Corporate debt securities |
|
|
53,274 |
|
|
|
147 |
|
|
|
(4,077 |
) |
|
|
49,344 |
|
|
|
46,289 |
|
Debt mutual funds |
|
|
6,783 |
|
|
|
— |
|
|
|
(269 |
) |
|
|
6,514 |
|
|
|
3,245 |
|
U.S. government agency securities |
|
|
4,786 |
|
|
|
— |
|
|
|
(93 |
) |
|
|
4,693 |
|
|
|
4,693 |
|
Certificates of deposit and time deposits |
|
|
1,261 |
|
|
|
— |
|
|
|
— |
|
|
|
1,261 |
|
|
|
— |
|
Non-U.S. government securities |
|
|
546 |
|
|
|
— |
|
|
|
— |
|
|
|
546 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
293,307 |
|
|
$ |
197 |
|
|
$ |
(7,603 |
) |
|
$ |
285,901 |
|
|
$ |
263,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities |
|
$ |
210,598 |
|
|
$ |
8 |
|
|
$ |
(760 |
) |
|
$ |
209,846 |
|
|
$ |
195,003 |
|
Long-term marketable securities |
|
|
82,709 |
|
|
|
189 |
|
|
|
(6,843 |
) |
|
|
76,055 |
|
|
|
68,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
293,307 |
|
|
$ |
197 |
|
|
$ |
(7,603 |
) |
|
$ |
285,901 |
|
|
$ |
263,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The following table summarizes the composition of marketable securities at December 31, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper |
|
$ |
189,614 |
|
|
$ |
15 |
|
|
$ |
(9 |
) |
|
$ |
189,620 |
|
|
$ |
22,784 |
|
U.S. Treasury securities |
|
|
77,707 |
|
|
|
551 |
|
|
|
(470 |
) |
|
|
77,789 |
|
|
|
46,435 |
|
Corporate debt securities |
|
|
52,266 |
|
|
|
4,863 |
|
|
|
(227 |
) |
|
|
56,901 |
|
|
|
19,422 |
|
Debt mutual funds |
|
|
7,928 |
|
|
|
43 |
|
|
|
— |
|
|
|
7,971 |
|
|
|
— |
|
U.S. government agency securities |
|
|
4,617 |
|
|
|
5 |
|
|
|
(12 |
) |
|
|
4,610 |
|
|
|
3,296 |
|
Certificates of deposit and time deposits |
|
|
1,356 |
|
|
|
— |
|
|
|
— |
|
|
|
1,356 |
|
|
|
— |
|
Non-U.S. government securities |
|
|
589 |
|
|
|
— |
|
|
|
— |
|
|
|
589 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
334,077 |
|
|
$ |
5,477 |
|
|
$ |
(718 |
) |
|
$ |
338,836 |
|
|
$ |
91,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities |
|
$ |
244,213 |
|
|
$ |
64 |
|
|
$ |
(46 |
) |
|
$ |
244,231 |
|
|
$ |
54,798 |
|
Long-term marketable securities |
|
|
89,864 |
|
|
|
5,413 |
|
|
|
(672 |
) |
|
|
94,605 |
|
|
|
37,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
334,077 |
|
|
$ |
5,477 |
|
|
$ |
(718 |
) |
|
$ |
338,836 |
|
|
$ |
91,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual Maturities of Investments Held |
The contractual maturities of investments in securities held at July 3, 2022 were as follows:
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due within one year |
|
$ |
210,598 |
|
|
$ |
209,846 |
|
Due after 1 year through 5 years |
|
|
32,283 |
|
|
|
31,069 |
|
Due after 5 years through 10 years |
|
|
5,055 |
|
|
|
4,736 |
|
Due after 10 years |
|
|
38,588 |
|
|
|
33,736 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
286,524 |
|
|
$ |
279,387 |
|
|
|
|
|
|
|
|
|
|
|
Schedule of Notional Amount of Derivatives |
At July 3, 2022 and December 31, 2021, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Japanese Yen |
|
$ |
(32.5 |
) |
|
$ |
— |
|
|
$ |
(32.5 |
) |
|
$ |
(31.4 |
) |
|
$ |
— |
|
|
$ |
(31.4 |
) |
Taiwan Dollar |
|
|
(27.2 |
) |
|
|
— |
|
|
|
(27.2 |
) |
|
|
(35.1 |
) |
|
|
— |
|
|
|
(35.1 |
) |
Korean Won |
|
|
(3.1 |
) |
|
|
— |
|
|
|
(3.1 |
) |
|
|
(4.2 |
) |
|
|
— |
|
|
|
(4.2 |
) |
British Pound Sterling |
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
|
|
(1.8 |
) |
|
|
— |
|
|
|
(1.8 |
) |
Singapore Dollar |
|
|
— |
|
|
|
40.0 |
|
|
|
40.0 |
|
|
|
— |
|
|
|
61.9 |
|
|
|
61.9 |
|
Euro |
|
|
— |
|
|
|
39.8 |
|
|
|
39.8 |
|
|
|
— |
|
|
|
44.9 |
|
|
|
44.9 |
|
Philippine Peso |
|
|
— |
|
|
|
3.2 |
|
|
|
3.2 |
|
|
|
— |
|
|
|
3.9 |
|
|
|
3.9 |
|
Chinese Yuan |
|
|
— |
|
|
|
2.8 |
|
|
|
2.8 |
|
|
|
— |
|
|
|
2.8 |
|
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(63.8 |
) |
|
$ |
85.8 |
|
|
$ |
22.0 |
|
|
$ |
(72.5 |
) |
|
$ |
113.5 |
|
|
$ |
41.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value |
The following table summarizes the fair value of derivative instruments as of July 3, 2022 and December 31, 2021:
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts |
|
Prepayments |
|
$ |
103 |
|
|
$ |
92 |
|
Foreign exchange contracts |
|
Other current liabilities |
|
|
(233 |
) |
|
|
(118 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total derivatives |
|
|
|
$ |
(130 |
) |
|
$ |
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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 for the three and six months ended July 3, 2022 and July 4, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Location of (Gains) Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts |
|
Other (income) expense, net |
|
$ |
(1,703 |
) |
|
$ |
1,531 |
|
|
$ |
(3,455 |
) |
|
$ |
3,650 |
| |