<SUBMISSION>
<ACCESSION-NUMBER>0001193125-23-203780
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>107
<PERIOD>20230702
<FILING-DATE>20230804
<DATE-OF-FILING-DATE-CHANGE>20230804
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>TERADYNE, INC
<CIK>0000097210
<ASSIGNED-SIC>3825
<IRS-NUMBER>042272148
<STATE-OF-INCORPORATION>MA
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-06462
<FILM-NUMBER>231143663
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>600 RIVERPARK DRIVE
<CITY>NORTH READING
<STATE>MA
<ZIP>01864
<PHONE>978-370-2700
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>600 RIVERPARK DRIVE
<CITY>NORTH READING
<STATE>MA
<ZIP>01864
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>TERADYNE INC
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d417157d10q.htm
<DESCRIPTION>10-Q
<TEXT>

  Table of Contents  

false0000097210Q2--12-31truehttp://fasb.org/us-gaap/2023#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrentIncludes
$1.3 million and $1.9 million in 2023 and 2022, respectively, for leases of
Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”)
606 “Revenue from Contracts with Customers.”Includes $2.5 million and $4.2
million in 2023 and 2022, respectively, for leases of Teradyne’s systems
recognized outside ASC 606 “Revenue from Contracts with Customers.”Included in
Corporate and Eliminations are: interest income, interest expense, net foreign
exchange gains (losses), intercompany eliminations, legal and environmental
fees, severance charges, pension, and an expense for the modification of
Teradyne’s former chief executive officer’s outstanding equity awards.Included
in income (loss) before taxes are charges related to restructuring and other,
and inventory charges.Total assets are attributable to each segment. Corporate
assets consist of cash and cash equivalents, marketable securities, and certain
other assets. 0000097210 2023-01-01 2023-07-02 0000097210 2023-07-02 0000097210
2022-12-31 0000097210 2022-01-01 2022-07-03 0000097210 2023-04-03 2023-07-02
0000097210 2022-04-04 2022-07-03 0000097210 2022-04-03 2022-07-03 0000097210
2022-07-03 0000097210 2022-01-01 2022-12-31 0000097210 2021-12-31 0000097210
2016-12-12 2016-12-12 0000097210 2023-01-31 0000097210 2022-01-31 0000097210
2020-05-01 0000097210 2022-10-05 0000097210 2023-07-31 0000097210 2023-01-01
2023-01-01 0000097210 2022-08-16 2022-08-16 0000097210 2023-01-01 0000097210
2023-04-02 0000097210 2022-04-02 0000097210 2022-04-03 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member
us-gaap:CashMember 2023-07-02 0000097210 us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2023-07-02
0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2023-07-02
0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember
2023-07-02 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member us-gaap:CashEquivalentsMember 2023-07-02
0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member us-gaap:CashEquivalentsMember 2023-07-02
0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashEquivalentsMember
2023-07-02 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CashEquivalentsMember 2023-07-02 0000097210
ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember
2023-07-02 0000097210 ter:ConvertibleSeniorNotesMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember ter:PrepaidExpenseMember 2023-07-02
0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member ter:PrepaidExpenseMember 2023-07-02
0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member ter:PrepaidExpenseMember 2023-07-02
0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member ter:PrepaidExpenseMember 2023-07-02
0000097210 us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember
ter:LongTermMarketableSecuritiesMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember ter:MarketableSecuritiesMember
2023-07-02 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CashAndCashEquivalentsMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
2023-07-02 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member 2023-07-02 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
2023-07-02 0000097210 us-gaap:FairValueInputsLevel3Member
ter:LongTermMarketableSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
ter:LongTermMarketableSecuritiesMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member
ter:LongTermMarketableSecuritiesMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member ter:MarketableSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
ter:MarketableSecuritiesMember us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel1Member ter:MarketableSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:CashAndCashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
us-gaap:CashAndCashEquivalentsMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member
us-gaap:CashAndCashEquivalentsMember 2023-07-02 0000097210
us-gaap:EstimateOfFairValueFairValueDisclosureMember 2023-07-02 0000097210
us-gaap:CarryingReportedAmountFairValueDisclosureMember 2023-07-02 0000097210
us-gaap:ForeignCorporateDebtSecuritiesMember 2023-07-02 0000097210
us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2023-07-02
0000097210 us-gaap:CertificatesOfDepositMember 2023-07-02 0000097210
ter:DebtMutualFundsMember 2023-07-02 0000097210 us-gaap:CommercialPaperMember
2023-07-02 0000097210 us-gaap:CorporateDebtSecuritiesMember 2023-07-02
0000097210 us-gaap:USTreasurySecuritiesMember 2023-07-02 0000097210
ter:LongTermMarketableSecuritiesMember 2023-07-02 0000097210
ter:MarketableSecuritiesMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USTreasurySecuritiesMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
us-gaap:USTreasurySecuritiesMember 2023-07-02 0000097210
us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel3Member 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember
2023-07-02 0000097210 us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2023-07-02 0000097210
us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2023-07-02 0000097210
us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
us-gaap:CommercialPaperMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CommercialPaperMember 2023-07-02 0000097210
us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember
2023-07-02 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member ter:DebtMutualFundsMember 2023-07-02
0000097210 us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember ter:DebtMutualFundsMember
2023-07-02 0000097210 ter:DebtMutualFundsMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member
2023-07-02 0000097210 us-gaap:FairValueMeasurementsRecurringMember
ter:DebtMutualFundsMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CertificatesOfDepositMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
us-gaap:CertificatesOfDepositMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CertificatesOfDepositMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember
2023-07-02 0000097210 us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2023-07-02
0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member
us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2023-07-02
0000097210 us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member
2023-07-02 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2023-07-02
0000097210 us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:ForeignCorporateDebtSecuritiesMember 2023-07-02 0000097210
us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:ForeignCorporateDebtSecuritiesMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:ForeignCorporateDebtSecuritiesMember 2023-07-02 0000097210
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherCurrentLiabilitiesMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember 2023-07-02 0000097210
us-gaap:NondesignatedMember us-gaap:ForeignExchangeForwardMember
ter:PrepaidExpenseMember 2023-07-02 0000097210
us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeForwardMember
ter:PrepaidExpenseMember 2023-07-02 0000097210 ter:RoboticsMember 2023-07-02
0000097210 ter:WirelessTestMember 2023-07-02 0000097210
ter:SemiconductorTestMember 2023-07-02 0000097210 ter:SystemsTestGroupMember
2023-07-02 0000097210 ter:CorporateAndEliminationsMember 2023-07-02 0000097210
us-gaap:FairValueMeasurementsRecurringMember ter:EquityMutualFundsMember
2023-07-02 0000097210 ter:EquityMutualFundsMember
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
2023-07-02 0000097210 us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember ter:EquityMutualFundsMember
2023-07-02 0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember ter:EquityMutualFundsMember
2023-07-02 0000097210 us-gaap:NondesignatedMember
us-gaap:ForeignExchangeForwardMember 2023-07-02 0000097210
us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeOptionMember
us-gaap:OtherCurrentLiabilitiesMember 2023-07-02 0000097210
us-gaap:DevelopedTechnologyRightsMember 2023-07-02 0000097210
us-gaap:CustomerRelationshipsMember 2023-07-02 0000097210
us-gaap:TrademarksAndTradeNamesMember 2023-07-02 0000097210
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2023-07-02
0000097210 ter:NonUSSubsidiariesMember 2023-07-02 0000097210 currency:JPY
2023-07-02 0000097210 currency:TWD 2023-07-02 0000097210 currency:KRW 2023-07-02
0000097210 currency:GBP 2023-07-02 0000097210 currency:EUR 2023-07-02 0000097210
currency:SGD 2023-07-02 0000097210 currency:PHP 2023-07-02 0000097210
currency:CNY 2023-07-02 0000097210 currency:DKK 2023-07-02 0000097210
us-gaap:ShortTermContractWithCustomerMember 2023-07-02 0000097210
ter:ConvertibleCommonSharesMember 2023-07-02 0000097210 currency:JPY
us-gaap:CashFlowHedgingMember us-gaap:ForeignExchangeForwardMember
us-gaap:LongMember 2023-07-02 0000097210 us-gaap:CashFlowHedgingMember
us-gaap:ForeignExchangeForwardMember 2023-07-02 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CashMember 2022-12-31 0000097210 us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2022-12-31
0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2022-12-31
0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember
2022-12-31 0000097210 us-gaap:CashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member
2022-12-31 0000097210 us-gaap:CashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
2022-12-31 0000097210 us-gaap:CashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member
2022-12-31 0000097210 us-gaap:CashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
ter:ConvertibleSeniorNotesMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
ter:LongTermMarketableSecuritiesMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member
ter:LongTermMarketableSecuritiesMember 2022-12-31 0000097210
ter:MarketableSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember
2022-12-31 0000097210 us-gaap:FairValueInputsLevel3Member
ter:MarketableSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember
2022-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member ter:MarketableSecuritiesMember 2022-12-31
0000097210 us-gaap:FairValueMeasurementsRecurringMember
ter:MarketableSecuritiesMember us-gaap:FairValueInputsLevel1Member 2022-12-31
0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CashAndCashEquivalentsMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:CashAndCashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
us-gaap:CashAndCashEquivalentsMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member
us-gaap:CashAndCashEquivalentsMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member
2022-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member 2022-12-31 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
2022-12-31 0000097210 ter:PrepaidExpenseMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember ter:PrepaidExpenseMember
us-gaap:FairValueInputsLevel3Member 2022-12-31 0000097210
ter:PrepaidExpenseMember us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember ter:PrepaidExpenseMember
us-gaap:FairValueInputsLevel1Member 2022-12-31 0000097210
ter:LongTermMarketableSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember
ter:LongTermMarketableSecuritiesMember us-gaap:FairValueInputsLevel3Member
2022-12-31 0000097210 us-gaap:EstimateOfFairValueFairValueDisclosureMember
2022-12-31 0000097210 us-gaap:CarryingReportedAmountFairValueDisclosureMember
2022-12-31 0000097210 us-gaap:ForeignCorporateDebtSecuritiesMember 2022-12-31
0000097210 us-gaap:CertificatesOfDepositMember 2022-12-31 0000097210
us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2022-12-31
0000097210 ter:DebtMutualFundsMember 2022-12-31 0000097210
us-gaap:CommercialPaperMember 2022-12-31 0000097210
us-gaap:USTreasurySecuritiesMember 2022-12-31 0000097210
us-gaap:CorporateDebtSecuritiesMember 2022-12-31 0000097210
ter:LongTermMarketableSecuritiesMember 2022-12-31 0000097210
ter:MarketableSecuritiesMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2022-12-31 0000097210
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USTreasurySecuritiesMember 2022-12-31 0000097210
us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel2Member 2022-12-31 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USTreasurySecuritiesMember 2022-12-31 0000097210
us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember
2022-12-31 0000097210 us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember
2022-12-31 0000097210 us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember
2022-12-31 0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember
2022-12-31 0000097210 us-gaap:CommercialPaperMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
ter:DebtMutualFundsMember us-gaap:FairValueMeasurementsRecurringMember
us-gaap:FairValueInputsLevel1Member 2022-12-31 0000097210
us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember
ter:DebtMutualFundsMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
ter:DebtMutualFundsMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember ter:DebtMutualFundsMember
2022-12-31 0000097210 us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2022-12-31
0000097210 us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
2022-12-31 0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2022-12-31
0000097210 us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CertificatesOfDepositMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CertificatesOfDepositMember 2022-12-31 0000097210
us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CertificatesOfDepositMember 2022-12-31 0000097210
us-gaap:CertificatesOfDepositMember us-gaap:FairValueMeasurementsRecurringMember
2022-12-31 0000097210 us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:ForeignCorporateDebtSecuritiesMember 2022-12-31 0000097210
us-gaap:ForeignCorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
2022-12-31 0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:ForeignCorporateDebtSecuritiesMember 2022-12-31 0000097210
us-gaap:ForeignCorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherCurrentLiabilitiesMember us-gaap:FairValueInputsLevel3Member
2022-12-31 0000097210 us-gaap:OtherCurrentLiabilitiesMember
us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember
2022-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember
us-gaap:OtherCurrentLiabilitiesMember us-gaap:FairValueInputsLevel1Member
2022-12-31 0000097210 us-gaap:NondesignatedMember
us-gaap:ForeignExchangeForwardMember ter:PrepaidExpenseMember 2022-12-31
0000097210 us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:ForeignExchangeForwardMember ter:PrepaidExpenseMember 2022-12-31
0000097210 ter:RoboticsMember 2022-12-31 0000097210 ter:WirelessTestMember
2022-12-31 0000097210 ter:SemiconductorTestMember 2022-12-31 0000097210
ter:SystemsTestGroupMember 2022-12-31 0000097210 ter:EquityMutualFundsMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member
2022-12-31 0000097210 ter:EquityMutualFundsMember
us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member
2022-12-31 0000097210 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember ter:EquityMutualFundsMember
2022-12-31 0000097210 ter:EquityMutualFundsMember
us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0000097210
us-gaap:NondesignatedMember us-gaap:ForeignExchangeForwardMember 2022-12-31
0000097210 us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:ForeignExchangeOptionMember us-gaap:OtherCurrentLiabilitiesMember
2022-12-31 0000097210 us-gaap:DevelopedTechnologyRightsMember 2022-12-31
0000097210 us-gaap:CustomerRelationshipsMember 2022-12-31 0000097210
us-gaap:TrademarksAndTradeNamesMember 2022-12-31 0000097210 currency:JPY
2022-12-31 0000097210 currency:TWD 2022-12-31 0000097210 currency:KRW 2022-12-31
0000097210 currency:GBP 2022-12-31 0000097210 currency:EUR 2022-12-31 0000097210
currency:SGD 2022-12-31 0000097210 currency:PHP 2022-12-31 0000097210
currency:CNY 2022-12-31 0000097210 currency:JPY us-gaap:CashFlowHedgingMember
us-gaap:ForeignExchangeForwardMember us-gaap:LongMember 2022-12-31 0000097210
currency:TWD us-gaap:CashFlowHedgingMember us-gaap:ForeignExchangeForwardMember
us-gaap:LongMember 2022-12-31 0000097210 us-gaap:CashFlowHedgingMember
us-gaap:ForeignExchangeForwardMember 2022-12-31 0000097210
us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember
us-gaap:ShortMember currency:JPY 2022-12-31 0000097210
us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember
us-gaap:ShortMember currency:TWD 2022-12-31 0000097210
ter:SemiconductorTestMember ter:SocMember us-gaap:TransferredAtPointInTimeMember
2023-04-03 2023-07-02 0000097210 ter:SemiconductorTestMember ter:MemoryMember
us-gaap:TransferredAtPointInTimeMember 2023-04-03 2023-07-02 0000097210
us-gaap:TransferredAtPointInTimeMember ter:SystemsTestGroupMember 2023-04-03
2023-07-02 0000097210 us-gaap:TransferredAtPointInTimeMember
ter:UniversalRobotsMember ter:RoboticsMember 2023-04-03 2023-07-02 0000097210
us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2023-04-03 2023-07-02 0000097210
us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2023-04-03
2023-07-02 0000097210 us-gaap:CorporateAndOtherMember
us-gaap:TransferredAtPointInTimeMember 2023-04-03 2023-07-02 0000097210
us-gaap:TransferredAtPointInTimeMember 2023-04-03 2023-07-02 0000097210
ter:SemiconductorTestMember ter:SocMember us-gaap:TransferredOverTimeMember
2023-04-03 2023-07-02 0000097210 ter:SemiconductorTestMember ter:MemoryMember
us-gaap:TransferredOverTimeMember 2023-04-03 2023-07-02 0000097210
us-gaap:TransferredOverTimeMember ter:SystemsTestGroupMember 2023-04-03
2023-07-02 0000097210 us-gaap:TransferredOverTimeMember
ter:UniversalRobotsMember ter:RoboticsMember 2023-04-03 2023-07-02 0000097210
us-gaap:TransferredOverTimeMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2023-04-03 2023-07-02 0000097210 ter:WirelessTestMember
us-gaap:TransferredOverTimeMember 2023-04-03 2023-07-02 0000097210
us-gaap:TransferredOverTimeMember 2023-04-03 2023-07-02 0000097210
ter:SemiconductorTestMember ter:SocMember 2023-04-03 2023-07-02 0000097210
ter:MemoryMember ter:SemiconductorTestMember 2023-04-03 2023-07-02 0000097210
ter:SystemsTestGroupMember 2023-04-03 2023-07-02 0000097210
ter:UniversalRobotsMember ter:RoboticsMember 2023-04-03 2023-07-02 0000097210
ter:RoboticsMember ter:MobileIndustrialRobotsApsMember 2023-04-03 2023-07-02
0000097210 ter:WirelessTestMember 2023-04-03 2023-07-02 0000097210
us-gaap:CorporateAndOtherMember 2023-04-03 2023-07-02 0000097210
ter:SemiconductorTestMember ter:SocMember srt:AsiaPacificMember 2023-04-03
2023-07-02 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AsiaPacificMember 2023-04-03 2023-07-02 0000097210
ter:SystemsTestGroupMember srt:AsiaPacificMember 2023-04-03 2023-07-02
0000097210 srt:AsiaPacificMember ter:UniversalRobotsMember ter:RoboticsMember
2023-04-03 2023-07-02 0000097210 srt:AsiaPacificMember
ter:MobileIndustrialRobotsApsMember ter:RoboticsMember 2023-04-03 2023-07-02
0000097210 srt:AsiaPacificMember ter:WirelessTestMember 2023-04-03 2023-07-02
0000097210 srt:AsiaPacificMember 2023-04-03 2023-07-02 0000097210
srt:AmericasMember ter:SocMember ter:SemiconductorTestMember 2023-04-03
2023-07-02 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AmericasMember 2023-04-03 2023-07-02 0000097210 ter:SystemsTestGroupMember
srt:AmericasMember 2023-04-03 2023-07-02 0000097210 srt:AmericasMember
ter:UniversalRobotsMember ter:RoboticsMember 2023-04-03 2023-07-02 0000097210
srt:AmericasMember ter:MobileIndustrialRobotsApsMember ter:RoboticsMember
2023-04-03 2023-07-02 0000097210 srt:AmericasMember ter:WirelessTestMember
2023-04-03 2023-07-02 0000097210 srt:AmericasMember
us-gaap:CorporateAndOtherMember 2023-04-03 2023-07-02 0000097210
srt:AmericasMember 2023-04-03 2023-07-02 0000097210 ter:SemiconductorTestMember
ter:SocMember us-gaap:EMEAMember 2023-04-03 2023-07-02 0000097210
us-gaap:EMEAMember ter:MemoryMember ter:SemiconductorTestMember 2023-04-03
2023-07-02 0000097210 ter:SystemsTestGroupMember us-gaap:EMEAMember 2023-04-03
2023-07-02 0000097210 us-gaap:EMEAMember ter:UniversalRobotsMember
ter:RoboticsMember 2023-04-03 2023-07-02 0000097210 ter:RoboticsMember
ter:MobileIndustrialRobotsApsMember us-gaap:EMEAMember 2023-04-03 2023-07-02
0000097210 us-gaap:EMEAMember ter:WirelessTestMember 2023-04-03 2023-07-02
0000097210 us-gaap:EMEAMember 2023-04-03 2023-07-02 0000097210
ter:SemiconductorTestMember 2023-04-03 2023-07-02 0000097210 ter:RoboticsMember
2023-04-03 2023-07-02 0000097210 us-gaap:OtherNonoperatingIncomeExpenseMember
us-gaap:NondesignatedMember us-gaap:ForeignExchangeOptionMember 2023-04-03
2023-07-02 0000097210 us-gaap:ForeignPlanMember 2023-04-03 2023-07-02 0000097210
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2023-04-03
2023-07-02 0000097210 us-gaap:EmployeeStockOptionMember 2023-04-03 2023-07-02
0000097210 ter:CorporateAndEliminationsMember 2023-04-03 2023-07-02 0000097210
us-gaap:RestrictedStockUnitsRSUMember 2023-04-03 2023-07-02 0000097210
us-gaap:CommonStockMember 2023-04-03 2023-07-02 0000097210
us-gaap:AdditionalPaidInCapitalMember 2023-04-03 2023-07-02 0000097210
us-gaap:RetainedEarningsMember 2023-04-03 2023-07-02 0000097210
us-gaap:ProductMember 2023-04-03 2023-07-02 0000097210 us-gaap:ServiceMember
2023-04-03 2023-07-02 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-04-03 2023-07-02
0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-04-03
2023-07-02 0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2023-04-03 2023-07-02 0000097210 us-gaap:SalesMember
us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeOptionMember
2023-04-03 2023-07-02 0000097210 us-gaap:EMEAMember ter:WirelessTestMember
2023-01-01 2023-07-02 0000097210 us-gaap:EMEAMember 2023-01-01 2023-07-02
0000097210 ter:SemiconductorTestMember ter:SocMember 2023-01-01 2023-07-02
0000097210 ter:SemiconductorTestMember ter:MemoryMember 2023-01-01 2023-07-02
0000097210 ter:SystemsTestGroupMember 2023-01-01 2023-07-02 0000097210
ter:UniversalRobotsMember ter:RoboticsMember 2023-01-01 2023-07-02 0000097210
ter:MobileIndustrialRobotsApsMember ter:RoboticsMember 2023-01-01 2023-07-02
0000097210 ter:SemiconductorTestMember ter:SocMember
us-gaap:TransferredAtPointInTimeMember 2023-01-01 2023-07-02 0000097210
ter:SemiconductorTestMember ter:MemoryMember
us-gaap:TransferredAtPointInTimeMember 2023-01-01 2023-07-02 0000097210
ter:SystemsTestGroupMember us-gaap:TransferredAtPointInTimeMember 2023-01-01
2023-07-02 0000097210 us-gaap:TransferredAtPointInTimeMember
ter:UniversalRobotsMember ter:RoboticsMember 2023-01-01 2023-07-02 0000097210
us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2023-01-01 2023-07-02 0000097210
us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2023-01-01
2023-07-02 0000097210 us-gaap:CorporateAndOtherMember
us-gaap:TransferredAtPointInTimeMember 2023-01-01 2023-07-02 0000097210
us-gaap:TransferredAtPointInTimeMember 2023-01-01 2023-07-02 0000097210
ter:SemiconductorTestMember ter:SocMember us-gaap:TransferredOverTimeMember
2023-01-01 2023-07-02 0000097210 ter:SemiconductorTestMember ter:MemoryMember
us-gaap:TransferredOverTimeMember 2023-01-01 2023-07-02 0000097210
us-gaap:TransferredOverTimeMember ter:SystemsTestGroupMember 2023-01-01
2023-07-02 0000097210 us-gaap:TransferredOverTimeMember
ter:UniversalRobotsMember ter:RoboticsMember 2023-01-01 2023-07-02 0000097210
us-gaap:TransferredOverTimeMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2023-01-01 2023-07-02 0000097210
us-gaap:TransferredOverTimeMember ter:WirelessTestMember 2023-01-01 2023-07-02
0000097210 us-gaap:TransferredOverTimeMember 2023-01-01 2023-07-02 0000097210
ter:WirelessTestMember 2023-01-01 2023-07-02 0000097210
us-gaap:CorporateAndOtherMember 2023-01-01 2023-07-02 0000097210
ter:SemiconductorTestMember ter:SocMember srt:AsiaPacificMember 2023-01-01
2023-07-02 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AsiaPacificMember 2023-01-01 2023-07-02 0000097210
ter:SystemsTestGroupMember srt:AsiaPacificMember 2023-01-01 2023-07-02
0000097210 srt:AsiaPacificMember ter:UniversalRobotsMember ter:RoboticsMember
2023-01-01 2023-07-02 0000097210 ter:RoboticsMember
ter:MobileIndustrialRobotsApsMember srt:AsiaPacificMember 2023-01-01 2023-07-02
0000097210 srt:AsiaPacificMember ter:WirelessTestMember 2023-01-01 2023-07-02
0000097210 srt:AsiaPacificMember 2023-01-01 2023-07-02 0000097210
srt:AmericasMember ter:SocMember ter:SemiconductorTestMember 2023-01-01
2023-07-02 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AmericasMember 2023-01-01 2023-07-02 0000097210 ter:SystemsTestGroupMember
srt:AmericasMember 2023-01-01 2023-07-02 0000097210 srt:AmericasMember
ter:UniversalRobotsMember ter:RoboticsMember 2023-01-01 2023-07-02 0000097210
srt:AmericasMember ter:MobileIndustrialRobotsApsMember ter:RoboticsMember
2023-01-01 2023-07-02 0000097210 srt:AmericasMember ter:WirelessTestMember
2023-01-01 2023-07-02 0000097210 srt:AmericasMember
us-gaap:CorporateAndOtherMember 2023-01-01 2023-07-02 0000097210
srt:AmericasMember 2023-01-01 2023-07-02 0000097210 ter:SemiconductorTestMember
ter:SocMember us-gaap:EMEAMember 2023-01-01 2023-07-02 0000097210
us-gaap:EMEAMember ter:MemoryMember ter:SemiconductorTestMember 2023-01-01
2023-07-02 0000097210 ter:SystemsTestGroupMember us-gaap:EMEAMember 2023-01-01
2023-07-02 0000097210 us-gaap:EMEAMember ter:UniversalRobotsMember
ter:RoboticsMember 2023-01-01 2023-07-02 0000097210 ter:RoboticsMember
ter:MobileIndustrialRobotsApsMember us-gaap:EMEAMember 2023-01-01 2023-07-02
0000097210 ter:SemiconductorTestMember 2023-01-01 2023-07-02 0000097210
ter:RoboticsMember 2023-01-01 2023-07-02 0000097210
us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:NondesignatedMember
us-gaap:ForeignExchangeOptionMember 2023-01-01 2023-07-02 0000097210
us-gaap:ForeignPlanMember 2023-01-01 2023-07-02 0000097210
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2023-01-01
2023-07-02 0000097210 ter:EmployeesMember us-gaap:RestrictedStockUnitsRSUMember
2023-01-01 2023-07-02 0000097210 us-gaap:RestrictedStockUnitsRSUMember
srt:DirectorMember 2023-01-01 2023-07-02 0000097210
ter:EmployeeStockPurchasePlanMember srt:MinimumMember 2023-01-01 2023-07-02
0000097210 us-gaap:EmployeeStockOptionMember srt:MaximumMember 2023-01-01
2023-07-02 0000097210
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2023-01-01
2023-07-02 0000097210 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-07-02
0000097210 ter:CorporateAndEliminationsMember 2023-01-01 2023-07-02 0000097210
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember exch:XNYS
2023-01-01 2023-07-02 0000097210
us-gaap:ShareBasedCompensationAwardTrancheOneMember
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2023-01-01
2023-07-02 0000097210
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember
us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2023-01-01 2023-07-02
0000097210
ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember
2023-01-01 2023-07-02 0000097210 us-gaap:PensionPlansDefinedBenefitMember
2023-01-01 2023-07-02 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember
2023-01-01 2023-07-02 0000097210
us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-01-01 2023-07-02
0000097210 ter:AccumulatedNetUnrealizedLossesOnCashFlowHedgesMember 2023-01-01
2023-07-02 0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2023-01-01 2023-07-02 0000097210 us-gaap:RestrictedStockUnitsRSUMember
2023-01-01 2023-07-02 0000097210 us-gaap:EmployeeStockOptionMember 2023-01-01
2023-07-02 0000097210 us-gaap:CommonStockMember 2023-01-01 2023-07-02 0000097210
us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-07-02 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-07-02
0000097210 us-gaap:DevelopedTechnologyRightsMember 2023-01-01 2023-07-02
0000097210 us-gaap:CustomerRelationshipsMember 2023-01-01 2023-07-02 0000097210
us-gaap:TrademarksAndTradeNamesMember 2023-01-01 2023-07-02 0000097210
ter:EmployeesMember ter:ServiceBasedRestrictedStockUnitsMember 2023-01-01
2023-07-02 0000097210 ter:TERServiceBasedStockOptionsMember
ter:NonEmployeeDirectorsMember 2023-01-01 2023-07-02 0000097210
ter:ProfitBeforeIncomeAndTaxPerformanceBasedRestrictedStockUnitsMember
2023-01-01 2023-07-02 0000097210 srt:ExecutiveOfficerMember
ter:ServiceBasedRestrictedStockUnitsMember 2023-01-01 2023-07-02 0000097210
ter:ServiceBasedStockOptionsMember srt:ExecutiveOfficerMember 2023-01-01
2023-07-02 0000097210 us-gaap:MeasurementInputExpectedDividendPaymentMember
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2023-01-01
2023-07-02 0000097210 us-gaap:MeasurementInputExpectedDividendPaymentMember
us-gaap:EmployeeStockOptionMember 2023-01-01 2023-07-02 0000097210 country:SG
2023-01-01 2023-07-02 0000097210 us-gaap:ForeignExchangeContractMember
2023-01-01 2023-07-02 0000097210
ter:UnitedStatesSupplementalExecutiveDefinedBenefitPensionPlanMember 2023-01-01
2023-07-02 0000097210 ter:NonEmployeesMember
ter:ServiceBasedRestrictedStockUnitsMember 2023-01-01 2023-07-02 0000097210
us-gaap:RetainedEarningsMember 2023-01-01 2023-07-02 0000097210
us-gaap:ProductMember 2023-01-01 2023-07-02 0000097210 us-gaap:ServiceMember
2023-01-01 2023-07-02 0000097210 srt:MinimumMember
us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember
ter:TruistBankMember 2023-01-01 2023-07-02 0000097210 srt:MaximumMember
us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember
ter:TruistBankMember 2023-01-01 2023-07-02 0000097210 srt:MinimumMember
ter:LondonInterbankOfferedRateMember us-gaap:RevolvingCreditFacilityMember
ter:TruistBankMember 2023-01-01 2023-07-02 0000097210 srt:MaximumMember
ter:LondonInterbankOfferedRateMember us-gaap:RevolvingCreditFacilityMember
ter:TruistBankMember 2023-01-01 2023-07-02 0000097210 srt:MinimumMember
us-gaap:RevolvingCreditFacilityMember ter:TruistBankMember 2023-01-01 2023-07-02
0000097210 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember
ter:TruistBankMember 2023-01-01 2023-07-02 0000097210
us-gaap:ShortTermContractWithCustomerMember 2023-01-01 2023-07-02 0000097210
us-gaap:LongTermContractWithCustomerMember srt:MinimumMember 2023-01-01
2023-07-02 0000097210 us-gaap:LongTermContractWithCustomerMember
srt:MaximumMember 2023-01-01 2023-07-02 0000097210 ter:RetirementAgreementMember
2023-01-01 2023-07-02 0000097210 us-gaap:CollateralPledgedMember 2023-01-01
2023-07-02 0000097210 us-gaap:SalesMember
us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeOptionMember
2023-01-01 2023-07-02 0000097210 us-gaap:CashFlowHedgingMember 2023-01-01
2023-07-02 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember
2022-04-03 2022-07-03 0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2022-04-03 2022-07-03 0000097210 us-gaap:TransferredAtPointInTimeMember
ter:SocMember ter:SemiconductorTestMember 2022-01-01 2022-07-03 0000097210
ter:SemiconductorTestMember ter:MemoryMember
us-gaap:TransferredAtPointInTimeMember 2022-01-01 2022-07-03 0000097210
ter:SystemsTestGroupMember us-gaap:TransferredAtPointInTimeMember 2022-01-01
2022-07-03 0000097210 ter:RoboticsMember ter:UniversalRobotsMember
us-gaap:TransferredAtPointInTimeMember 2022-01-01 2022-07-03 0000097210
us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2022-01-01 2022-07-03 0000097210
us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2022-01-01
2022-07-03 0000097210 us-gaap:TransferredAtPointInTimeMember
us-gaap:CorporateAndOtherMember 2022-01-01 2022-07-03 0000097210
us-gaap:TransferredAtPointInTimeMember 2022-01-01 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember us-gaap:TransferredOverTimeMember
2022-01-01 2022-07-03 0000097210 us-gaap:TransferredOverTimeMember
ter:MemoryMember ter:SemiconductorTestMember 2022-01-01 2022-07-03 0000097210
ter:SystemsTestGroupMember us-gaap:TransferredOverTimeMember 2022-01-01
2022-07-03 0000097210 us-gaap:TransferredOverTimeMember
ter:UniversalRobotsMember ter:RoboticsMember 2022-01-01 2022-07-03 0000097210
us-gaap:TransferredOverTimeMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2022-01-01 2022-07-03 0000097210
us-gaap:TransferredOverTimeMember ter:WirelessTestMember 2022-01-01 2022-07-03
0000097210 us-gaap:TransferredOverTimeMember 2022-01-01 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember 2022-01-01 2022-07-03 0000097210
ter:SemiconductorTestMember ter:MemoryMember 2022-01-01 2022-07-03 0000097210
ter:SystemsTestGroupMember 2022-01-01 2022-07-03 0000097210
ter:UniversalRobotsMember ter:RoboticsMember 2022-01-01 2022-07-03 0000097210
ter:MobileIndustrialRobotsApsMember ter:RoboticsMember 2022-01-01 2022-07-03
0000097210 ter:WirelessTestMember 2022-01-01 2022-07-03 0000097210
us-gaap:CorporateAndOtherMember 2022-01-01 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember srt:AsiaPacificMember 2022-01-01
2022-07-03 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AsiaPacificMember 2022-01-01 2022-07-03 0000097210
ter:SystemsTestGroupMember srt:AsiaPacificMember 2022-01-01 2022-07-03
0000097210 ter:RoboticsMember ter:UniversalRobotsMember srt:AsiaPacificMember
2022-01-01 2022-07-03 0000097210 srt:AsiaPacificMember
ter:MobileIndustrialRobotsApsMember ter:RoboticsMember 2022-01-01 2022-07-03
0000097210 srt:AsiaPacificMember ter:WirelessTestMember 2022-01-01 2022-07-03
0000097210 srt:AsiaPacificMember 2022-01-01 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember srt:AmericasMember 2022-01-01
2022-07-03 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AmericasMember 2022-01-01 2022-07-03 0000097210 ter:SystemsTestGroupMember
srt:AmericasMember 2022-01-01 2022-07-03 0000097210 srt:AmericasMember
ter:UniversalRobotsMember ter:RoboticsMember 2022-01-01 2022-07-03 0000097210
srt:AmericasMember ter:MobileIndustrialRobotsApsMember ter:RoboticsMember
2022-01-01 2022-07-03 0000097210 srt:AmericasMember ter:WirelessTestMember
2022-01-01 2022-07-03 0000097210 us-gaap:CorporateAndOtherMember
srt:AmericasMember 2022-01-01 2022-07-03 0000097210 srt:AmericasMember
2022-01-01 2022-07-03 0000097210 ter:SemiconductorTestMember ter:SocMember
us-gaap:EMEAMember 2022-01-01 2022-07-03 0000097210 ter:SemiconductorTestMember
ter:MemoryMember us-gaap:EMEAMember 2022-01-01 2022-07-03 0000097210
us-gaap:EMEAMember ter:SystemsTestGroupMember 2022-01-01 2022-07-03 0000097210
us-gaap:EMEAMember ter:UniversalRobotsMember ter:RoboticsMember 2022-01-01
2022-07-03 0000097210 us-gaap:EMEAMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2022-01-01 2022-07-03 0000097210 ter:WirelessTestMember
us-gaap:EMEAMember 2022-01-01 2022-07-03 0000097210 us-gaap:EMEAMember
2022-01-01 2022-07-03 0000097210 ter:SemiconductorTestMember 2022-01-01
2022-07-03 0000097210 ter:RoboticsMember 2022-01-01 2022-07-03 0000097210
us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:NondesignatedMember
us-gaap:ForeignExchangeOptionMember 2022-01-01 2022-07-03 0000097210
us-gaap:ForeignPlanMember 2022-01-01 2022-07-03 0000097210
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2022-01-01
2022-07-03 0000097210
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2022-01-01
2022-07-03 0000097210 us-gaap:EmployeeStockOptionMember 2022-01-01 2022-07-03
0000097210 ter:CorporateAndEliminationsMember 2022-01-01 2022-07-03 0000097210
exch:XNYS ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember
2022-01-01 2022-07-03 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember
2022-01-01 2022-07-03 0000097210
us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-01-01 2022-07-03
0000097210 ter:AccumulatedNetUnrealizedLossesOnCashFlowHedgesMember 2022-01-01
2022-07-03 0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2022-01-01 2022-07-03 0000097210 us-gaap:RestrictedStockUnitsRSUMember
2022-01-01 2022-07-03 0000097210 us-gaap:EmployeeStockOptionMember 2022-01-01
2022-07-03 0000097210 us-gaap:CommonStockMember 2022-01-01 2022-07-03 0000097210
us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-07-03 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-07-03
0000097210 ter:EmployeesMember ter:ServiceBasedRestrictedStockUnitsMember
2022-01-01 2022-07-03 0000097210 ter:NonEmployeeDirectorsMember
ter:TERServiceBasedStockOptionsMember 2022-01-01 2022-07-03 0000097210
ter:ProfitBeforeIncomeAndTaxPerformanceBasedRestrictedStockUnitsMember
2022-01-01 2022-07-03 0000097210 srt:ExecutiveOfficerMember
ter:ServiceBasedStockOptionsMember 2022-01-01 2022-07-03 0000097210
us-gaap:MeasurementInputExpectedDividendPaymentMember
us-gaap:EmployeeStockOptionMember 2022-01-01 2022-07-03 0000097210
us-gaap:MeasurementInputExpectedDividendPaymentMember
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2022-01-01
2022-07-03 0000097210 country:SG 2022-01-01 2022-07-03 0000097210
ter:UnitedStatesSupplementalExecutiveDefinedBenefitPensionPlanMember 2022-01-01
2022-07-03 0000097210 ter:NonEmployeesMember
ter:ServiceBasedRestrictedStockUnitsMember 2022-01-01 2022-07-03 0000097210
us-gaap:RetainedEarningsMember 2022-01-01 2022-07-03 0000097210
us-gaap:ProductMember 2022-01-01 2022-07-03 0000097210 us-gaap:ServiceMember
2022-01-01 2022-07-03 0000097210 us-gaap:CommonStockMember
us-gaap:ConvertibleCommonStockMember 2022-01-01 2022-07-03 0000097210
us-gaap:ForeignExchangeOptionMember us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:SalesMember 2022-01-01 2022-07-03 0000097210
us-gaap:SettledLitigationMember 2022-01-01 2022-07-03 0000097210
us-gaap:TransferredAtPointInTimeMember ter:SocMember ter:SemiconductorTestMember
2022-04-04 2022-07-03 0000097210 ter:SemiconductorTestMember ter:MemoryMember
us-gaap:TransferredAtPointInTimeMember 2022-04-04 2022-07-03 0000097210
ter:SystemsTestGroupMember us-gaap:TransferredAtPointInTimeMember 2022-04-04
2022-07-03 0000097210 ter:RoboticsMember ter:UniversalRobotsMember
us-gaap:TransferredAtPointInTimeMember 2022-04-04 2022-07-03 0000097210
us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2022-04-04 2022-07-03 0000097210
us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2022-04-04
2022-07-03 0000097210 us-gaap:TransferredAtPointInTimeMember
us-gaap:CorporateAndOtherMember 2022-04-04 2022-07-03 0000097210
us-gaap:TransferredAtPointInTimeMember 2022-04-04 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember us-gaap:TransferredOverTimeMember
2022-04-04 2022-07-03 0000097210 us-gaap:TransferredOverTimeMember
ter:MemoryMember ter:SemiconductorTestMember 2022-04-04 2022-07-03 0000097210
ter:SystemsTestGroupMember us-gaap:TransferredOverTimeMember 2022-04-04
2022-07-03 0000097210 us-gaap:TransferredOverTimeMember
ter:UniversalRobotsMember ter:RoboticsMember 2022-04-04 2022-07-03 0000097210
ter:RoboticsMember ter:MobileIndustrialRobotsApsMember
us-gaap:TransferredOverTimeMember 2022-04-04 2022-07-03 0000097210
us-gaap:TransferredOverTimeMember ter:WirelessTestMember 2022-04-04 2022-07-03
0000097210 us-gaap:TransferredOverTimeMember 2022-04-04 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember 2022-04-04 2022-07-03 0000097210
ter:SemiconductorTestMember ter:MemoryMember 2022-04-04 2022-07-03 0000097210
ter:SystemsTestGroupMember 2022-04-04 2022-07-03 0000097210
ter:UniversalRobotsMember ter:RoboticsMember 2022-04-04 2022-07-03 0000097210
ter:MobileIndustrialRobotsApsMember ter:RoboticsMember 2022-04-04 2022-07-03
0000097210 ter:WirelessTestMember 2022-04-04 2022-07-03 0000097210
us-gaap:CorporateAndOtherMember 2022-04-04 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember srt:AsiaPacificMember 2022-04-04
2022-07-03 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AsiaPacificMember 2022-04-04 2022-07-03 0000097210
ter:SystemsTestGroupMember srt:AsiaPacificMember 2022-04-04 2022-07-03
0000097210 ter:RoboticsMember ter:UniversalRobotsMember srt:AsiaPacificMember
2022-04-04 2022-07-03 0000097210 srt:AsiaPacificMember
ter:MobileIndustrialRobotsApsMember ter:RoboticsMember 2022-04-04 2022-07-03
0000097210 srt:AsiaPacificMember ter:WirelessTestMember 2022-04-04 2022-07-03
0000097210 srt:AsiaPacificMember 2022-04-04 2022-07-03 0000097210
ter:SemiconductorTestMember ter:SocMember srt:AmericasMember 2022-04-04
2022-07-03 0000097210 ter:SemiconductorTestMember ter:MemoryMember
srt:AmericasMember 2022-04-04 2022-07-03 0000097210 srt:AmericasMember
ter:SystemsTestGroupMember 2022-04-04 2022-07-03 0000097210 srt:AmericasMember
ter:UniversalRobotsMember ter:RoboticsMember 2022-04-04 2022-07-03 0000097210
srt:AmericasMember ter:MobileIndustrialRobotsApsMember ter:RoboticsMember
2022-04-04 2022-07-03 0000097210 srt:AmericasMember ter:WirelessTestMember
2022-04-04 2022-07-03 0000097210 us-gaap:CorporateAndOtherMember
srt:AmericasMember 2022-04-04 2022-07-03 0000097210 srt:AmericasMember
2022-04-04 2022-07-03 0000097210 ter:SemiconductorTestMember ter:SocMember
us-gaap:EMEAMember 2022-04-04 2022-07-03 0000097210 ter:SemiconductorTestMember
ter:MemoryMember us-gaap:EMEAMember 2022-04-04 2022-07-03 0000097210
us-gaap:EMEAMember ter:SystemsTestGroupMember 2022-04-04 2022-07-03 0000097210
us-gaap:EMEAMember ter:UniversalRobotsMember ter:RoboticsMember 2022-04-04
2022-07-03 0000097210 us-gaap:EMEAMember ter:MobileIndustrialRobotsApsMember
ter:RoboticsMember 2022-04-04 2022-07-03 0000097210 ter:WirelessTestMember
us-gaap:EMEAMember 2022-04-04 2022-07-03 0000097210 us-gaap:EMEAMember
2022-04-04 2022-07-03 0000097210 ter:SemiconductorTestMember 2022-04-04
2022-07-03 0000097210 ter:RoboticsMember 2022-04-04 2022-07-03 0000097210
us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:NondesignatedMember
us-gaap:ForeignExchangeOptionMember 2022-04-04 2022-07-03 0000097210
us-gaap:ForeignPlanMember 2022-04-04 2022-07-03 0000097210
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2022-04-04
2022-07-03 0000097210 us-gaap:EmployeeStockOptionMember 2022-04-04 2022-07-03
0000097210 ter:CorporateAndEliminationsMember 2022-04-04 2022-07-03 0000097210
us-gaap:RestrictedStockUnitsRSUMember 2022-04-04 2022-07-03 0000097210
us-gaap:CommonStockMember 2022-04-04 2022-07-03 0000097210
us-gaap:AdditionalPaidInCapitalMember 2022-04-04 2022-07-03 0000097210
us-gaap:RetainedEarningsMember 2022-04-04 2022-07-03 0000097210
us-gaap:ProductMember 2022-04-04 2022-07-03 0000097210 us-gaap:ServiceMember
2022-04-04 2022-07-03 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-04 2022-07-03
0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-04-04
2022-07-03 0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2022-04-04 2022-07-03 0000097210 us-gaap:SalesMember
us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeOptionMember
2022-04-04 2022-07-03 0000097210 ter:RoboticsMember 2022-01-01 2022-12-31
0000097210 ter:WirelessTestMember 2022-01-01 2022-12-31 0000097210
ter:SemiconductorTestMember 2022-01-01 2022-12-31 0000097210
ter:SystemsTestGroupMember 2022-01-01 2022-12-31 0000097210
us-gaap:DevelopedTechnologyRightsMember 2022-01-01 2022-12-31 0000097210
us-gaap:CustomerRelationshipsMember 2022-01-01 2022-12-31 0000097210
us-gaap:TrademarksAndTradeNamesMember 2022-01-01 2022-12-31 0000097210
us-gaap:ForeignExchangeContractMember 2022-01-01 2022-12-31 0000097210
us-gaap:CashFlowHedgingMember 2022-01-01 2022-12-31 0000097210
ter:RoboticsMember 2022-07-03 0000097210 ter:WirelessTestMember 2022-07-03
0000097210 ter:CorporateAndEliminationsMember 2022-07-03 0000097210
ter:SemiconductorTestMember 2022-07-03 0000097210 ter:SystemsTestGroupMember
2022-07-03 0000097210
ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2022-07-03
0000097210 ter:NonUSSubsidiariesMember 2022-07-03 0000097210
ter:DisputeInRespectOfContingentConsiderationMember ter:AutoGuideLlcMember
2021-03-08 2021-03-08 0000097210
ter:DisputeInRespectOfContingentConsiderationMember ter:AutoGuideLlcMember
2022-03-01 2022-03-31 0000097210
ter:TerDisputeInRespectOfContingentConsiderationMember
ter:TerCorporateAndEliminationsMember 2022-03-25 2022-03-25 0000097210
ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember
2016-12-12 0000097210 ter:OptionOneMember
ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember
2016-12-12 0000097210 ter:TeradyneMember
us-gaap:AccountingStandardsUpdate202006Member
srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2022-01-01
0000097210 ter:TeradyneMember 2022-01-01 0000097210 ter:TeradyneMember
us-gaap:AccountingStandardsUpdate202006Member 2022-01-01 0000097210
ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember
2016-12-12 2016-12-12 0000097210 ter:OptionOneMember
ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember
2016-12-12 2016-12-12 0000097210 ter:OptionTwoMember
ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember
2016-12-12 2016-12-12 0000097210 us-gaap:SubsequentEventMember 2023-08-04
0000097210 us-gaap:CommonStockMember 2023-04-02 0000097210
us-gaap:AdditionalPaidInCapitalMember 2023-04-02 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-04-02 0000097210
us-gaap:RetainedEarningsMember 2023-04-02 0000097210 us-gaap:CommonStockMember
us-gaap:ConvertibleCommonStockMember 2023-04-02 0000097210
us-gaap:CommonStockMember 2023-07-02 0000097210
us-gaap:AdditionalPaidInCapitalMember 2023-07-02 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-07-02 0000097210
us-gaap:RetainedEarningsMember 2023-07-02 0000097210 us-gaap:CommonStockMember
us-gaap:ConvertibleCommonStockMember 2023-07-02 0000097210
us-gaap:CommonStockMember 2022-12-31 0000097210
us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0000097210
us-gaap:RetainedEarningsMember 2022-12-31 0000097210 us-gaap:CommonStockMember
us-gaap:ConvertibleCommonStockMember 2022-12-31 0000097210
ter:ForeignCurrencyTranslationAdjustmentsMember 2022-12-31 0000097210
us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-12-31 0000097210
ter:AccumulatedNetUnrealizedLossesOnCashFlowHedgesMember 2022-12-31 0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2022-12-31 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2023-07-02
0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-07-02
0000097210 ter:AccumulatedNetUnrealizedLossesOnCashFlowHedgesMember 2023-07-02
0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2023-07-02 0000097210 us-gaap:CommonStockMember 2021-12-31 0000097210
us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0000097210
us-gaap:RetainedEarningsMember 2021-12-31 0000097210 us-gaap:CommonStockMember
us-gaap:ConvertibleCommonStockMember 2021-12-31 0000097210
ter:ForeignCurrencyTranslationAdjustmentsMember 2021-12-31 0000097210
us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-12-31 0000097210
ter:AccumulatedNetUnrealizedLossesOnCashFlowHedgesMember 2021-12-31 0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2021-12-31 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2022-07-03
0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-07-03
0000097210 ter:AccumulatedNetUnrealizedLossesOnCashFlowHedgesMember 2022-07-03
0000097210
us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember
2022-07-03 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-07-03 0000097210 us-gaap:CommonStockMember 2022-07-03 0000097210
us-gaap:AdditionalPaidInCapitalMember 2022-07-03 0000097210
us-gaap:RetainedEarningsMember 2022-07-03 0000097210 us-gaap:CommonStockMember
us-gaap:ConvertibleCommonStockMember 2022-07-03 0000097210
us-gaap:CommonStockMember 2022-04-03 0000097210
us-gaap:AdditionalPaidInCapitalMember 2022-04-03 0000097210
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-03 0000097210
us-gaap:RetainedEarningsMember 2022-04-03 0000097210 us-gaap:CommonStockMember
us-gaap:ConvertibleCommonStockMember 2022-04-03 iso4217:USD utr:Year
xbrli:shares xbrli:pure utr:Month iso4217:USD xbrli:shares utr:Day ter:Segment



                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSIO
                                       N
                             Washington, D.C. 20549



                                      FORM
                                      10-Q



(Mark One)
?   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934


                  For the quarterly period ended July 2, 2023

                                       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         (I.R.S. Employer
     Incorporation or Organization)        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)



          Securities registered pursuant to Section 12(b) of the Act:

                                  Trading     Name of each exchange
     Title of each class         Symbol(s)     on which registered
Common Stock, par value $0.125      TER      Nasdaq Stock Market LLC
          per share


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 ?  No ?

Indicate by check mark whether the registrant has submitted electronically every
Interactive Data File required to be submitted 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 such files)  Yes ?  No ?

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer”, “smaller
reporting company”, and “emerging growth company” in
Rule 12b-2
of the Exchange Act (check one):

Large accelerated filer     ?   Accelerated filer         ?

Non-accelerated
filer                       ?   Emerging growth company   ?

Smaller reporting company   ?


If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ?

Indicate by check mark whether the registrant is a shell company (as defined in
Rule
12b-2
of the Exchange Act).  Yes ?  No ?

The number of shares outstanding of the registrant’s only class of Common Stock
as of July 31, 2023
,
was 154,013,736 shares.




--------------------------------------------------------------------------------
                                 TERADYNE, INC.

                                      INDE
                                       X

                                                                               Page No.

                      PART I. FINANCIAL INFORMATION   

Item 1.      Financial Statements (Unaudited):                                         1

             Condensed Consolidated Balance Sheets as of July 2, 2023 and
           December 31, 2022                                                           1

             Condensed Consolidated Statements of Operations for the Three
           and Six Months ended July 2, 2023 and July 3, 2022                          2

             Condensed Consolidated Statements of Comprehensive Income for
           the Three and Six Months ended July 2, 2023 and July 3, 2022                3

             Condensed Statements of Convertible Common Shares and
           Shareholders’ Equity for the Three and Six Months Ended July 2,
           2023 and July 3, 2022                                                       4

             Condensed Consolidated Statements of Cash Flows for the Six
           Months Ended July 2, 2023 and July 3, 2022                                  5

             Notes to Condensed Consolidated Financial Statements                      6

Item 2.      Management’s Discussion and Analysis of Financial Condition
           and Results of Operations                                                  28

Item 3.      Quantitative and Qualitative Disclosures about Market Risk               37

Item 4.      Controls and Procedures                                                  38

                        PART II. OTHER INFORMATION  

Item 1.      Legal Proceedings                                                        38

Item 1A.     Risk Factors                                                             38

Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds              39

Item 4.      Mine Safety Disclosures                                                  39

Item 5.      Other Information                                                        39

Item 6.      Exhibits                                                                 40


--------------------------------------------------------------------------------
                                     PART I

Item 1: Financial Statements


                                 TERADYNE, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

                                                              July 2,
                                                                              December 31,
                                                               2023               2022

                                                                    (in thousands,
                                                               except per share amount)
                         ASSETS
Current assets:
Cash and cash equivalents                                   $   613,208      $      854,773
Marketable securities                                            95,199              39,612
Accounts receivable, less allowance for credit losses of
$2,232 and $1,955 at July 2, 2023 and December 31, 2022,
respectively                                                    493,234             491,145
Inventories, net                                                347,295             325,019
Prepayments                                                     560,682             532,962
Other current assets                                             14,222              14,404

Total current assets                                          2,123,840           2,257,915
Property, plant and equipment, net                              437,077             418,683
Operating lease
right-of-use
assets, net                                                      75,889              73,734
Marketable securities                                           104,685             110,777
Deferred tax assets                                             152,471             142,784
Retirement plans assets                                          11,514              11,761
Other assets                                                     32,699              28,925
Acquired intangible assets, net                                  44,611              53,478
Goodwill                                                        412,110             403,195

Total assets                                                $ 3,394,896      $    3,501,252

                       LIABILITIES
Current liabilities:
Accounts payable                                            $   153,157      $      139,722
Accrued employees’ compensation and withholdings                163,653             212,266
Deferred revenue and customer advances                          120,085             148,285
Other accrued liabilities                                       114,435             112,271
Operating lease liabilities                                      20,212              18,594
Income taxes payable                                             65,437              65,010
Current debt                                                     32,806              50,115

Total current liabilities                                       669,785             746,263
Retirement plans liabilities                                    124,040             116,005
Long-term deferred revenue and customer advances                 38,999              45,131
Long-term other accrued liabilities                              16,475              15,981
Deferred tax liabilities                                          1,304               3,267
Long-term operating lease liabilities                            65,079              64,176
Long-term incomes taxes payable                                  44,331              59,135

Total liabilities                                               960,013           1,049,958

Commitments and contingencies (Note P)
                  SHAREHOLDERS’ EQUITY
Common stock, $0.125 par value, 1,000,000 shares
authorized; 154,148 and 155,759 shares issued and
outstanding at July 2, 2023 and December 31, 2022,
respectively                                                     19,269              19,470
Additional
paid-in
capital                                                       1,784,590           1,755,963
Accumulated other comprehensive loss                            (30,472 )           (49,868 )
Retained earnings                                               661,496             725,729

Total shareholders’ equity                                    2,434,883           2,451,294

Total liabilities and shareholders’ equity                  $ 3,394,896      $    3,501,252



   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, 2022, are an integral part of the condensed
                       consolidated financial statements.

                                       1

--------------------------------------------------------------------------------
  Table of Contents  

                                 TERADYNE, INC.

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)


                                                    For the Three Months              For the Six Months

                                                            Ended                           Ended
                                                                                   July 2,          July 3,
                                                   July 2,         July 3,
                                                     2023           2022            2023             2022

                                                            (in thousands, except per share amount)
Revenues:
Products                                          $  540,375      $ 697,954      $ 1,013,793      $ 1,323,829
Services                                             144,062        142,812          288,173          272,307

Total revenues                                       684,437        840,766        1,301,966        1,596,136
Cost of revenues:
Cost of products                                     217,011        274,674          415,675          517,690
Cost of services                                      64,934         59,703          127,379          117,124

Total cost of revenues (exclusive of acquired
intangible assets amortization shown separately
below)                                               281,945        334,377          543,054          634,814

Gross profit                                         402,492        506,389          758,912          961,322
Operating expenses:
Selling and administrative                           145,695        139,533          296,650          279,718
Engineering and development                          105,706        111,951          211,468          220,067
Acquired intangible assets amortization                4,825          4,871            9,627            9,934
Restructuring and other                                6,358          2,044            8,395           17,758

Total operating expenses                             262,584        258,399          526,140          527,477

Income from operations                               139,908        247,990          232,772          433,845
Non-operating
(income) expense:
Interest income                                       (6,354 )         (951 )        (11,613 )         (1,653 )
Interest expense                                       1,045            913            2,031            1,925
Other (income) expense, net                              815          9,436              868           14,622

Income before income taxes                           144,402        238,592          241,486          418,951
Income tax provision                                  24,352         40,805           37,905           59,236

Net income                                        $  120,050      $ 197,787      $   203,581      $   359,715

Net income per common share:
Basic                                             $     0.78      $    1.24      $      1.31      $      2.24

Diluted                                           $     0.73      $    1.16      $      1.23      $      2.07

Weighted average common shares—basic                 154,760        159,563          155,332          160,805

Weighted average common shares—diluted               164,751        171,159          165,530          173,367



   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, 2022, are an integral part of the condensed
                       consolidated financial statements.

                                       2

--------------------------------------------------------------------------------
  Table of Contents  

                                 TERADYNE, INC.

           CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                  (Unaudited)


                                                                                                           For the Three Months            For the Six Months

                                                                                                                   Ended                         Ended
                                                                                                          July 2,         July 3,        July 2,        July 3,
                                                                                                            2023           2022           2023           2022

                                                                                                                             (in thousands)
Net income                                                                                               $  120,050      $ 197,787      $ 203,581      $ 359,715
Other comprehensive income, net of tax:
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively                           2,943        (29,230 )       12,250        (37,307 )
Available-for-sale
marketable securities:
Unrealized (losses) gains on marketable securities arising during period, net of tax of $(180),
$(1,240), $323, and $(2,573), respectively                                                                     (568 )       (4,522 )        1,726         (9,910 )
Less: Reclassification adjustment for losses included in net income, net of tax of $8, $77, $10,
$59, respectively                                                                                                28            274             33            209

                                                                                                               (540 )       (4,248 )        1,759         (9,701 )
Cash flow hedges:
Unrealized gains arising during period, net
of
tax of $920, $0, $1,088, $
0
respectively                                                                                                  3,270             —           3,866             —
Less: Reclassification adjustment for losses included in net income, net of tax of $91, $0, $428, $0
respectively                                                                                                    323             —           1,524             —

                                                                                                              3,593             —           5,390             —
Defined benefit post-retirement plan:
Amortization of prior service credit, net of tax of $0, $0, $(1), $(1), respectively                             (2 )           (2 )           (3 )           (3 )

Other comprehensive income (loss)                                                                             5,994        (33,480 )       19,396        (47,011 )

Comprehensive income                                                                                     $  126,044      $ 164,307      $ 222,977      $ 312,704



   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, 2022, are an integral part of the condensed
                       consolidated financial statements.

                                       3

--------------------------------------------------------------------------------
  Table of Contents  

                                 TERADYNE, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES
                            AND SHAREHOLDERS’ EQUITY
                                  (Unaudited)

                                                                                                                        Shareholders’ Equity
                                                           Convertible                                            Additional         Accumulated
                                                             Common                                Common           Paid-in             Other                                Total
                                                             Shares              Common           Stock Par                         Comprehensive        Retained        Shareholders’
                                                              Value           Stock Shares          Value           Capital         (Loss) Income        Earnings           Equity

                                                                                                                           (in thousands)
For the Three Months Ended July 2, 2023
Balance, April 2, 2023                                    $          —              155,445      $    19,431      $ 1,772,352      $       (36,466 )    $  694,145      $     2,449,462
Net issuance of common stock under stock-based plans                                     52                7              161                                                       168
Stock-based compensation expense                                                                                       12,077                                                    12,077
Repurchase of common stock                                                           (1,349 )           (169 )                                            (135,668 )           (135,837 )
Cash dividends ($0.11 per share)                                                                                                                           (17,031 )            (17,031 )
Settlements of convertible notes                                                         50                6               (6 )                                                      —
Exercise of convertible notes hedge call options                                        (50 )             (6 )              6                                                        —
Net income                                                                                                                                                 120,050              120,050
Other comprehensive income                                                                                                                   5,994                                5,994

Balance, July 2, 2023                                     $          —              154,148      $    19,269      $ 1,784,590      $       (30,472 )    $  661,496      $     2,434,883

For the Three Months Ended July 3, 2022
Balance, April 3, 2022                                    $          —              161,053      $    20,132      $ 1,711,690      $       (19,479 )    $  762,189      $     2,474,532
Net issuance of common stock under stock-based plans                                     33                4           (1,675 )                                                  (1,671 )
Stock-based compensation expense                                                                                       11,658                                                    11,658
Repurchase of common stock                                                           (3,206 )           (401 )                                            (333,933 )           (334,334 )
Cash dividends ($0.11 per share)                                                                                                                           (17,561 )            (17,561 )
Settlements of convertible notes                                                        495               62             (149 )                                                     (87 )
Exercise of convertible notes hedge call options                                       (495 )            (62 )             62                                                        —
Cumulative-effect of change in accounting principle
related to convertible debt                                                                                                                                  1,752                1,752
Net income                                                                                                                                                 197,787              197,787
Other comprehensive loss                                                                                                                   (33,480 )                            (33,480 )

Balance, July 3, 2022                                     $          —              157,880      $    19,735      $ 1,721,586      $       (52,959 )    $  610,234      $     2,298,596

For the Six Months Ended July 2, 2023
Balance, December 31, 2022                                $          —              155,759      $    19,470      $ 1,755,963      $       (49,868 )    $  725,729      $     2,451,294
Net issuance of common stock under stock-based plans                                    631               79           (3,782 )                                                  (3,703 )
Stock-based compensation expense                                                                                       32,409                                                    32,409
Repurchase of common stock                                                           (2,242 )           (280 )                                            (233,604 )           (233,884 )
Cash dividends ($0.22 per share)                                                                                                                           (34,210 )            (34,210 )
Settlements of convertible notes                                                        375               47              (47 )                                                      —
Exercise of convertible notes hedge call options                                       (375 )            (47 )             47                                                        —
Net income                                                                                                                                                 203,581              203,581
Other comprehensive income                                                                                                                  19,396                               19,396

Balance, July 2, 2023                                     $          —              154,148      $    19,269      $ 1,784,590      $       (30,472 )    $  661,496      $     2,434,883

For the Six Months Ended July 3, 2022
Balance, December 31, 2021                                $       1,512             162,251      $    20,281      $ 1,811,545      $        (5,948 )    $  736,566      $     2,562,444
Net issuance of common stock under stock-based plans                                    585               73          (16,318 )                                                 (16,245 )
Stock-based compensation expense                                                                                       25,862                                                    25,862
Repurchase of common stock                                                           (4,956 )           (619 )                                            (545,179 )           (545,798 )
Cash dividends ($0.22 per share)                                                                                                                           (35,470 )            (35,470 )
Settlements of convertible notes                                                      1,004              125             (306 )                                                    (181 )
Exercise of convertible notes hedge call options                                     (1,004 )           (125 )            125                                                        —
Cumulative-effect of change in accounting principle
related to convertible debt                                      (1,512 )                                             (99,322 )                             94,602               (4,720 )
Net income                                                                                                                                                 359,715              359,715
Other comprehensive loss                                                                                                                   (47,011 )                            (47,011 )

Balance, July 3, 2022                                     $          —              157,880      $    19,735      $ 1,721,586      $       (52,959 )    $  610,234      $     2,298,596



   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, 2022, are an integral part of the condensed
                       consolidated financial statements.

                                       4

--------------------------------------------------------------------------------
  Table of Contents  

                                 TERADYNE, INC.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)


                                                                 For the Six Months Ended
                                                                 July 2,           July 3,

                                                                   2023             2022

                                                                      (in thousands)
Cash flows from operating activities:
Net income                                                     $    203,581      $   359,715
Adjustments to reconcile net income from operations to net
cash provided by operating activities:
Depreciation                                                         45,231           44,460
Stock-based compensation                                             32,449           25,122
Provision for excess and obsolete inventory                          11,341            6,695
Amortization                                                          9,580           10,095
Deferred taxes                                                      (13,571 )        (23,597 )
(Gains) losses on investments                                        (4,745 )          8,973
Other                                                                   (92 )            522
Changes in operating assets and liabilities
Accounts receivable                                                  (2,693 )       (146,384 )
Inventories                                                         (13,845 )        (46,682 )
Prepayments and other assets                                        (29,584 )        (94,751 )
Accounts payable and other liabilities                              (24,514 )        (43,611 )
Deferred revenue and customer advances                              (34,938 )         14,163
Retirement plans contributions                                       (2,482 )         (2,618 )
Income taxes                                                        (13,614 )         10,815

Net cash provided by operating activities                           162,104          122,917

Cash flows from investing activities:
Purchases of property, plant and equipment                          (80,702 )        (89,743 )
Purchases of marketable securities                                  (99,018 )       (247,881 )
Proceeds from sales of marketable securities                         35,577          143,642
Proceeds from maturities of marketable securities                    21,997          139,652
Proceeds from life insurance                                            460               —

Net cash used for investing activities                             (121,686 )        (54,330 )

Cash flows from financing activities:
Repurchase of common stock                                         (227,845 )       (532,799 )
Dividend payments                                                   (34,184 )        (35,442 )
Payments related to net settlement of employee stock
compensation awards                                                 (20,308 )        (32,780 )
Payments of convertible debt principal                              (17,458 )        (42,292 )
Issuance of common stock under stock purchase and stock
option plans                                                         16,599           16,536

Net cash used for financing activities                             (283,196 )       (626,777 )

Effects of exchange rate changes on cash and cash
equivalents                                                           1,213            8,014

Decrease in cash and cash equivalents                              (241,565 )       (550,176 )
Cash and cash equivalents at beginning of period                    854,773        1,122,199

Cash and cash equivalents at end of period                     $    613,208      $   572,023

Non-cash
investing activities:
Capital expenditures incurred but not yet paid:                $      1,741      $     1,855


   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, 2022, are an integral part of the condensed
                       consolidated financial statements.

                                       5

--------------------------------------------------------------------------------
  Table of Contents  

                                 TERADYNE, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

A. THE COMPANY

Teradyne, Inc. (“Teradyne”) is a leading global supplier of automated test
equipment and robotics solutions. Teradyne designs, develops, manufactures and
sells automatic test systems and robotics products. Teradyne’s automatic test
systems are used to test semiconductors, wireless products, data storage and
complex electronics systems in many industries including consumer electronics,
wireless, automotive, industrial, computing, communications, and aerospace and
defense industries. Teradyne’s robotics products include collaborative robotic
arms and autonomous mobile robots (“AMRs”) used by global manufacturing,
logistics and industrial customers to improve quality, increase manufacturing
and material handling efficiency and decrease manufacturing and logistics costs.
Teradyne’s automatic test equipment and robotics products and services include:

  •   semiconductor test (“Semiconductor Test”) systems;



     •    storage and system level test (“Storage Test”) systems, defense/aerospace
          (“Defense/Aerospace”) test instrumentation and systems, and circuit-board
          test and inspection (“Production Board Test”) systems (collectively these
          products represent “System Test”);



  •   wireless test (“Wireless Test”) systems; and



  •   robotics (“Robotics”) products.


B. ACCOUNTING POLICIES

Basis of Presentation

The 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 statement of such interim financial
statements. Certain prior year amounts may have been reclassified to conform to
the current year presentation. The December 31, 2022 condensed consolidated
balance sheet data was derived from audited financial statements but does not
include all disclosures required by United States of America generally accepted
accounting principles (“U.S. GAAP”) for complete financial statements. 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. Securities and Exchange Commission (“SEC”) on February 22,
2023, for the year ended December 31, 2022.

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 of assets, liabilities, revenues
and expenses, and related disclosures of contingent liabilities. On an
on-going
basis, management evaluates its estimates, including those related to
inventories, investments, goodwill, intangible and other long-lived assets,
accounts receivable, income taxes, deferred tax assets and liabilities,
pensions, warranties, contingent consideration liabilities, and loss
contingencies. Management bases its estimates on historical experience and on
appropriate and customary assumptions that are believed to be reasonable under
the circumstances, the results of which form the basis for making judgements
about the carrying values of assets and liabilities that are not readily
apparent from other sources. Due to the
COVID-19
pandemic, there has been uncertainty and disruption in the global economy and
our markets. Management is not aware of any specific event or circumstance that
would require an update to its estimates or judgments or a revision of the
carrying value of its assets or liabilities as of the date of issuance of this
Quarterly Report on Form
10-Q.
These estimates may change, as new events occur and additional information is
obtained. Actual results may differ significantly from these estimates under
different assumptions or conditions.

C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

For the six months ended July 2, 2023, there were no recently issued accounting
pronouncements that had, or are expected to have, a material impact to
Teradyne’s consolidated financial statements.

                                       6

--------------------------------------------------------------------------------
  Table of Contents  

D. REVENUE

Disaggregation of Revenue

The following table provides information about disaggregated revenue by timing
of revenue recognition, primary geographical market, and major product lines.


                                          Semiconductor Test                               Robotics

                                                                                                                                  Corporate

                                                                                                    Mobile        Wireless           and
                                         System                      System       Universal       Industrial
                                       on-a-Chip       Memory         Test          Robots          Robots          Test         Eliminations          Total

                                                                                            (in thousands)
For the Three Months Ended July 2,
2023 (1)
Timing of Revenue Recognition
Point in Time                          $  282,080     $ 112,547     $  76,801     $   55,737     $     12,770     $  40,261     $           —       $   580,196
Over Time                                  72,614         7,467        17,471          2,116            1,011         3,562                 —           104,241

Total                                  $  354,694     $ 120,014     $  94,272     $   57,853     $     13,781     $  43,823     $           —       $   684,437

Geographical Market
Asia Pacific                           $  303,062     $ 115,250     $  41,644     $   14,883     $      2,291     $  22,362     $           —       $   499,492
Americas                                   32,191         4,286        40,163         22,832            6,086        19,491                 —           125,049
Europe, Middle East and Africa             19,441           478        12,465         20,138            5,404         1,970                 —            59,896

Total                                  $  354,694     $ 120,014     $  94,272     $   57,853     $     13,781     $  43,823     $           —       $   684,437

For the Three Months Ended July 3,
2022 (1)
Timing of Revenue Recognition
Point in Time                          $  395,211     $  74,790     $ 118,692     $   80,409     $     17,801     $  60,765     $         (193 )    $   747,475
Over Time                                  64,253         7,094        16,010          2,104              741         3,089                 —            93,291

Total                                  $  459,464     $  81,884     $ 134,702     $   82,513     $     18,542     $  63,854     $         (193 )    $   840,766

Geographical Market
Asia Pacific                           $  413,537     $  78,996     $  95,584     $   17,357     $      5,317     $  44,106     $           —       $   654,897
Americas                                   28,714         2,552        33,409         27,732            7,229        17,460               (193 )        116,903
Europe, Middle East and Africa             17,213           336         5,709         37,424            5,996         2,288                 —            68,966

Total                                  $  459,464     $  81,884     $ 134,702     $   82,513     $     18,542     $  63,854     $         (193 )    $   840,766

For the Six Months Ended July 2,
2023 (2)
Timing of Revenue Recognition
Point in Time                          $  555,354     $ 173,805     $ 133,658     $  125,760     $     28,735     $  75,624     $           —       $ 1,092,937
Over Time                                 146,173        14,384        35,245          4,124            2,229         6,874                 —           209,029

Total                                  $  701,528     $ 188,189     $ 168,903     $  129,884     $     30,964     $  82,498     $           —       $ 1,301,966

Geographical Market
Asia Pacific                           $  586,321     $ 178,945     $  81,234     $   28,100     $      3,793     $  45,593     $           —       $   923,986
Americas                                   73,759         7,230        69,143         43,273           17,898        32,337                 —           243,640
Europe, Middle East and Africa             41,448         2,014        18,526         58,511            9,273         4,568                 —           134,340

Total                                  $  701,528     $ 188,189     $ 168,903     $  129,884     $     30,964     $  82,498     $           —       $ 1,301,966

For the Six Months Ended July 3,
2022 (2)
Timing of Revenue Recognition
Point in Time                          $  718,666     $ 163,513     $ 223,981     $  163,591     $     34,545     $ 109,194     $         (539 )    $ 1,412,951
Over Time                                 127,382        14,127        29,390          4,206            1,902         6,178                 —           183,185

Total                                  $  846,048     $ 177,640     $ 253,371     $  167,797     $     36,447     $ 115,372     $         (539 )    $ 1,596,136

Geographical Market
Asia Pacific                           $  754,277     $ 172,147     $ 169,369     $   35,978     $      7,909     $  79,052     $           —       $ 1,218,732
Americas                                   58,428         4,598        70,017         55,880           15,793        27,147               (539 )        231,324
Europe, Middle East and Africa             33,343           895        13,985         75,939           12,745         9,173                 —           146,080

Total                                  $  846,048     $ 177,640     $ 253,371     $  167,797     $     36,447     $ 115,372     $         (539 )    $ 1,596,136





(1) Includes $1.3 million and $1.9 million in 2023 and 2022, respectively, for
    leases of Teradyne’s systems recognized outside Accounting Standards
    Codification (“ASC”) 606
    “Revenue from Contracts with Customers.”


(2) Includes $2.5 million and $4.2 million in 2023 and 2022, respectively, for
    leases of Teradyne’s systems recognized outside ASC 606
    “Revenue from Contracts with Customers.”



                                       7

--------------------------------------------------------------------------------
  Table of Contents  

Contract Balances

During the three and six months ended July 2, 2023, Teradyne recognized
$27.3 million and $68.4 million, respectively, that was included within the
deferred revenue and customer advances balances at the beginning of the period.
During the three and six months ended July 3, 2022, Teradyne recognized
$25.1 million and $60.2
million, respectively, that was included within the deferred revenue and
customer advances balances at the beginning of the period. This revenue
primarily relates to undelivered hardware, extended warranties, training,
application support, and post contract support. Each of these represents a
distinct performance obligation. As of July 2, 2023, Teradyne
had $
1,271.6
 million of unsatisfied performance obligations. Teradyne expects to recognize

approximately

90
% of the remaining performance obligations in the next
12
months and
the remainder
in
1-3
years.

Deferred revenue and customer advances consist of the following and are included
in short and long-term deferred revenue and customer advances on the balance
sheet:


                                                     July 2,       December 31,
                                                      2023             2022

                                                           (in thousands)
Maintenance, service and training                   $  68,282     $       78,089
Customer advances, undelivered elements and other      46,380             59,147
Extended warranty                                      44,422             56,180

Total deferred revenue and customer advances        $ 159,084     $      193,416



Accounts Receivable

During the three and six months ended July 2, 2023 and July 3, 2022, Teradyne
sold certain trade accounts receivables on a
non-recourse
basis to third-party financial institutions pursuant to factoring agreements.
During the three months ended July 2, 2023 and July 3, 2022, total trade
accounts receivable sold under the factoring agreements were $59.3 million and
$37.6 million, respectively. During the six months ended July 2, 2023 and
July 3, 2022, total trade account
s
receivable sold under the factoring agreements were $93.5 million and
$57.1 million
, respectively
. Factoring fees for the sales of receivables were recorded in interest expense
and were not material. Teradyne accounted for these transactions as sales of
receivables and presented cash proceeds as cash provided by operating activities
in the consolidated statements of cash flows.

E. INVENTORIES

Inventories, net consisted of the following at July 2, 2023 and December 31,
2022:


                   July 2,       December 31,

                    2023             2022

                         (in thousands)
Raw material      $ 250,422     $      256,065
Work-in-process      43,685             37,982
Finished goods       53,188             30,972

                  $ 347,295     $      325,019



Inventory reserves at July 2, 2023 and December 31, 2022 were $140.3 million and
$136.8 million, respectively.

F. FINANCIAL INSTRUMENTS

Cash Equivalents

Teradyne considers all highly liquid investments with maturities of three months
or less at the date of acquisition to be cash equivalents.

Marketable Securities

Teradyne’s equity and debt mutual funds are classified as Level 1 and
available-for-sale
debt securities are classified as Level 2. Contingent consideration is
classified as Level 3. The vast majority of Level 2 securities are fixed income
securities 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.

During the three and six months ended July 2, 2023 and July 3, 2022, there were
no transfers in or out of Level 1, Level 2, or Level 3 financial instruments.


                                       8

--------------------------------------------------------------------------------
  Table of Contents  

Realized gains recorded in the three and six months ended July 2, 2023
,
were $
0.1
 million and $
0.4
 million, respectively. Realized gains recorded in the three and six months
ended July 3, 2022
,
were $
0.1
 million and $
0.5
 million, respectively. Realized losses recorded in the three and six months
ended July 2, 2023
,
were $
0.2
 million. Realized losses recorded in the three and six months ended July 3,
2022
,
were $
0.4
 million and $
0.6
 million, respectively. Realized gains and losses are included in other (income)
expense, net.

Unrealized gains on equity securities recorded in the three and six months ended
July 2, 2023
,
were $2.6 million and $4.6 million, respectively. No unrealized gains on equity
securities were recorded in the three and six months ended July 3, 2022. No
unrealized losses on equity securities were recorded in the three and six months
ended July 2, 2023. Unrealized losses on equity securities recorded in the three
and six months ended July 3, 2022
,
were $6.6 million and $8.8 million, respectively. Unrealized gains and losses on
equity securities are included in other (income) expense, net.

Unrealized gains and losses on
available-for-sale
debt securities are included in accumulated other comprehensive income (loss) on
the balance sheet.

The cost of securities sold is based on average cost.

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 2, 2023 and December 31, 2022.

                                       9

--------------------------------------------------------------------------------
  Table of Contents  





                                                                   July 2, 2023
                                          Quoted
                                          Prices

                                         in Active          Significant

                                        Markets for            Other            Significant

                                         Identical          Observable         Unobservable

                                        Instruments           Inputs              Inputs

                                         (Level 1)           (Level 2)           (Level 3)           Total

                                                                  (in thousands)
Assets
Cash                                   $     311,803       $          —        $          —        $ 311,803
Cash equivalents                             290,548              10,857                  —          301,405
Available-for-sale
securities:
U.S. Treasury securities                          —               52,238                  —           52,238
Corporate debt securities                         —               51,608                  —           51,608
Commercial paper                                  —               30,882                  —           30,882
Debt mutual funds                              7,739                  —                   —            7,739
Certificates of deposit and time
deposits                                          —                6,699                  —            6,699
U.S. government agency securities                 —                6,475                  —            6,475
Non-U.S.
government securities                             —                  544                  —              544
Equity securities:
Mutual funds                                  43,699                  —                   —           43,699

                                       $     653,789       $     159,303       $          —        $ 813,092
Derivative assets                                 —                5,819                  —            5,819

Total                                  $     653,789       $     165,122       $          —        $ 818,911

Liabilities
Derivative liabilities                 $          —        $         994       $          —        $     994

Total                                  $          —        $         994       $          —        $     994


Reported as follows:
                                         (Level 1)           (Level 2)           (Level 3)           Total

                                                                  (in thousands)
Assets
Cash and cash equivalents              $     602,351       $      10,857       $          —        $ 613,208
Marketable securities                             —               95,199                  —           95,199
Long-term marketable securities               51,438              53,247                  —          104,685
Prepayments                                       —                5,819                  —            5,819

Total                                  $     653,789       $     165,122       $          —        $ 818,911

Liabilities                                        .
Other current liabilities              $          —        $         994       $          —        $     994

Total                                  $          —        $         994       $          —        $     994




                                       10

--------------------------------------------------------------------------------
  Table of Contents  

                                                                December 31, 2022
                                        Quoted

                                        Prices

                                       in Active          Significant

                                      Markets for            Other            Significant

                                       Identical          Observable         Unobservable

                                      Instruments           Inputs              Inputs

                                       (Level 1)           (Level 2)           (Level 3)            Total

                                                                 (in thousands)
Assets
Cash                                 $     632,417       $          —        $          —        $   632,417
Cash equivalents                           161,767              60,589                  —            222,356
Available-for-sale
securities:                                                                                               —
Corporate debt securities                       —               50,856                  —             50,856
U.S. Treasury securities                        —               39,649                  —             39,649
Commercial paper                                —                7,159                  —              7,159
Debt mutual funds                            6,580                  —                   —              6,580
U.S. government agency
securities                                      —                6,352                  —              6,352
Certificates of deposit and time
deposits                                        —                1,740                  —              1,740
Non-U.S.
government securities                           —                  535                  —                535
Equity securities:
Mutual Funds                                37,518                  —                   —             37,518

                                     $     838,282       $     166,880       $          —        $ 1,005,162
Derivative assets                               —                   86                  —                 86

Total                                $     838,282       $     166,966       $          —        $ 1,005,248

Liabilities
Derivative liabilities                          —                4,215                  —              4,215

Total                                $          —        $       4,215       $          —        $     4,215





Reported as follows:


                                  (Level 1)      (Level 2)      (Level 3)         Total

                                                       (in thousands)
Assets
Cash and cash equivalents         $

                                     794,184     $   60,589     $       —      $   854,773
Marketable securities                     —          39,612             —           39,612
Long-term marketable securities       44,098         66,679             —          110,777
Prepayments                               —              86             —               86

Total                                            $
                                  $  838,282        166,966     $       —      $ 1,005,248

Liabilities
Other current liabilities         $       —      $    4,215     $       —      $     4,215

Total                             $       —      $    4,215     $       —      $     4,215





The carrying amounts and fair values of Teradyne’s financial instruments at
July 2, 2023 and December 31, 2022
,
were as follows:

                                                July 2, 2023                            December 31, 2022
                                      Carrying Value         Fair Value         Carrying Value         Fair Value

                                                                    (in thousands)
Assets
Cash and cash equivalents            $        613,208       $    613,208       $        854,773       $    854,773
Marketable securities                         199,884            199,884                150,389            150,389
Derivative assets                               5,819              5,819                     86                 86
Liabilities
Derivative liabilities                            994                994                  4,215              4,215
Convertible debt                               32,806            115,778                 50,115            139,007



                                       11

--------------------------------------------------------------------------------
  Table of Contents  

The fair values of accounts receivable, net and accounts payable approximate the
carrying value due to the short-term nature of these instruments.

The following table summarizes the composition of
available-for-sale
marketable securities at July 2, 2023:

                                                                     July 2, 2023

                                                                  Available-for-Sale

                                                                                                     Fair Market

                                                                                                      Value of

                                                                                                     Investments
                                                                                      Fair
                                                  Unrealized       Unrealized        Market        with Unrealized

                                     Cost            Gain            (Loss)           Value            Losses

                                                                    (in thousands)
U.S. Treasury securities           $  56,107     $          2     $     (3,871 )    $  52,238     $          42,716
Corporate debt securities             56,680               12           (5,084 )       51,608                50,455
Commercial paper                      30,311              581              (10 )       30,882                19,840
Debt mutual funds                      8,104               —              (365 )        7,739                 3,161
Certificates of deposit and time
deposits                               6,699               —                —           6,699                    —
U.S. government agency
securities                             6,520               —               (45 )        6,475                 6,475
Non-U.S.
government securities                    544               —                —             544                    —

                                   $ 164,965     $        595     $     (9,375 )    $ 156,185     $         122,647



Reported as follows:

                                                                                                        Fair Market

                                                                                                         Value of

                                                                                                        Investments

                                                 Unrealized       Unrealized        Fair Market       with Unrealized

                                    Cost            Gain            (Loss)             Value              Losses

                                                                     (in thousands)
Marketable securities             $  95,482     $        581     $       (864 )    $      95,199     $          68,121
Long-term marketable securities      69,483               14           (8,511 )           60,986                54,526

                                  $ 164,965     $        595     $     (9,375 )    $     156,185     $         122,647



The following table summarizes the composition of
available-for-sale
marketable securities at December 31, 2022:

                                                                   December 31, 2022

                                                                   Available-for-Sale
                                                                                                      Fair Market

                                                                                                       Value of

                                                                                                      Investments
                                                                                       Fair
                                                   Unrealized       Unrealized        Market        with Unrealized

                                      Cost            Gain            (Loss)           Value            Losses

                                                                     (in thousands)
Corporate debt securities           $  57,006     $          3     $     (6,153 )    $  50,856     $          50,667
U.S. Treasury securities               44,030               —            (4,381 )       39,649                39,649
Commercial paper                        7,089               70               —           7,159                    —
Debt mutual funds                       6,997               —              (417 )        6,580                 3,095
U.S. government agency securities       6,442               —               (90 )        6,352                 6,352
Certificates of deposit and time
deposits                                1,740               —                —           1,740                    —
Non-U.S.
government securities                     535               —                —             535                    —

                                    $ 123,839     $         73     $    (11,041 )    $ 112,871     $          99,763




                                       12

--------------------------------------------------------------------------------
  Table of Contents  

Reported as follows:


                                                                                                      Fair Market

                                                                                                       Value of

                                                                                                      Investments
                                                                                       Fair
                                                   Unrealized       Unrealized        Market        with Unrealized

                                      Cost            Gain            (Loss)           Value            Losses

                                                                     (in thousands)
Marketable securities               $  39,950     $         70     $       (408 )    $  39,612     $          30,713
Long-term marketable securities        83,889                3          (10,633 )       73,259                69,050

                                    $ 123,839     $         73     $    (11,041 )    $ 112,871     $          99,763



As of July 2, 2023, the fair market value of investments with unrealized losses
less than one year and greater than one year totaled $63.8 million and
$58.8 million, respectively. As of December 31, 2022, the fair market value of
investments with unrealized losses for less than one year and greater than one
year totaled $66.3 million and $33.4 million, respectively.

Teradyne reviews its investments to identify and evaluate investments that have
an indication of possible impairment. Based on this review, Teradyne determined
that the unrealized losses related to these investments at July 2, 2023 and
December 31, 2022 were not other than temporary.

The contractual maturities of investments in
available-for-sale
securities held at July 2, 2023
,
were as follows:

                                            July 2, 2023

                                                    Fair Market

                                       Cost            Value

                                           (in thousands)
Due within one year                  $  95,482     $      95,199
Due after 1 year through 5 years        17,131            16,467
Due after 5 years through 10 years       6,012             5,559
Due after 10 years                      38,236            31,221

Total                                $ 156,861     $     148,446



Contractual maturities of investments in
available-for-sale
securities held at July 2, 2023, exclude debt mutual funds with a fair market
value of $7.7 million, as they do not have a contractual maturity date.

Derivatives

Teradyne conducts business in various foreign countries, with certain
transactions denominated in local currencies. As a result, Teradyne is exposed
to risks relating to changes in foreign currency exchange rates. Teradyne’s
foreign currency risk management objective is to minimize the effect of exchange
rate fluctuations associated with the remeasurement of monetary assets and
liabilities denominated in foreign currencies, and changes in its cash inflows
attributable to the forecasted cash flows from certain foreign currency
denominated revenues.

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 value of monetary assets and liabilities denominated in
foreign currencies.

Teradyne also enters into foreign currency forward and option contracts
designated as cash flow hedges to hedge the risk of changes in its cash inflows
attributable to changes in foreign currency exchange rates. The cash flow hedges
have maturities of less than six months and mature in the period of revenue
recognition for certain products and services in backlog and forecasted to be
recognized in a future period. Teradyne evaluates cash flow hedges for
effectiveness at inception based on the critical terms match method. The hedges
are not expected to incur any ineffectiveness however a quarterly qualitative
assessment of effectiveness is done to determine if the critical terms match
method remains appropriate to use. The change in fair value of the contracts is
recorded in accumulated other comprehensive income (loss) and reclassified to
earnings at maturity date.

Teradyne does not use derivative financial instruments for speculative purposes.

                                       13

--------------------------------------------------------------------------------
  Table of Contents  

At July 2, 2023 and December 31, 2022, 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:




                                               Net Notional Value
                                      July 2, 2023        December 31, 2022

                                                  (in millions)
Currency Hedged (Buy/Sell)

U.S. dollar/Japanese yen             $         66.3      $              37.1
U.S. dollar/Taiwan dollar                      22.3                     29.2
U.S. dollar/Korean won                          8.1                      6.4
U.S. dollar/British pound sterling              0.9                      1.2
Euro/U.S. dollar                               24.5                     38.4
Singapore dollar/U.S. dollar                   22.0                       34
Philippine peso/U.S. dollar                     2.5                      2.7
Chinese yuan/U.S. dollar                        1.8                      2.2
Danish krone/U.S. dollar                        0.6                       —

Total                                $        149.0      $             150.7



The fair value of the outstanding contracts was a
gain

of $1.1 million and
a loss of
$0.9 million, respectively, at July 2, 2023 and December 31, 2022.

Unrealized gains and losses on foreign currency forward contracts and foreign
currency remeasurement gains and losses on monetary assets and liabilities are
included in other (income) expense, net.

At July 2, 2023 and December 31, 2022, Teradyne had the following cash flow
hedge contracts to buy and sell
non-U.S.
currencies for U.S. dollars with the following notional amounts:




                                       Net Notional Value
                             July 2, 2023         December 31, 2022

                                          (in millions)
Currency Hedged (Buy/Sell)

Japanese yen/U.S. dollar     $        52.8       $              23.4
Taiwan dollar/U.S. dollar                —                       5.5
U.S. dollar/Japanese yen                —                       61.2
U.S. dollar/Taiwan dollar               —                       10.9

Total                        $        52.8       $             101.0





The fair value of the outstanding cash flow hedge contracts was a gain of
$3.7 million and a loss of $3.2 million at July 2, 2023 and December 31, 2022,
respectively.

Unrealized gains and losses on foreign currency cash flow hedge contracts are
included in accumulated other comprehensive income (loss). At maturity, the
gains or losses associated with cash flow hedge contracts are recorded to
revenue.

The following table summarizes the fair value of derivative instruments as of
July 2, 2023 and December 31, 2022:

                                   Balance Sheet Location       July 2, 2023          December 31, 2022

                                                                             (in thousands)
Derivatives not designated as
hedging instruments:
Foreign exchange forward
contracts                         Prepayments                   $       2,138        $                86
Foreign exchange forward
contracts                         Other current liabilities              (994 )                     (990 )
Derivatives designated as
hedging instruments:
Foreign exchange forward
contracts                         Prepayments                           3,681                         —
Foreign exchange option
contracts                         Other current liabilities                —                      (3,225 )

Total derivatives                                               $       4,825        $            (4,129 )




                                       14

--------------------------------------------------------------------------------
  Table of Contents  

The following table summarizes the effect of derivative instruments recognized
in the statement of operations for the three and six months ended July 2, 2023
and July 3, 2022:


                                                                      For the Three Months
                                                                                                     For the Six Months
                                                                              Ended                         Ended
                                      Location of (Gains) Losses
                                      Recognized in Statement of      July 2,        July 3,        July 2,       July 3,
                                              Operations               2023            2022          2023           2022

                                                                                 (in thousands)
Derivatives not designated as
hedging instruments:
Foreign exchange forward contracts    Other (income) expense, net   $    (4,040 )    $ (1,703 )    $  (2,781 )    $ (3,455 )
Derivatives designated as hedging
instruments:
Foreign exchange option contracts     Revenue                               414            —           1,952            —

Total Derivatives                                                   $    (3,626 )    $ (1,703 )    $    (829 )    $ (3,455 )





The table does not reflect the corresponding gains and losses from the
remeasurement of the monetary assets and liabilities
denominated in foreign currencies. For the three and six months ended July 2,
2023, net losses from remeasurement of monetary assets and liabilities
denominated in foreign currencies were $6.7 million and $7.0 million,
respectively. For the three and six months ended July 3, 2022, net losses from
remeasurement of monetary assets and liabilities denominated in foreign
currencies were $3.7 million and $8.0 million, respectively.

See Note G: “Debt” regarding derivatives related to the convertible senior
notes.

G. DEBT

Convertible Senior Notes

On December 12, 2016, Teradyne completed a private offering of $460.0 million
aggregate principal amount of 1.25% convertible senior unsecured notes (the
“Notes”) due December 15, 2023 and received net proceeds, after issuance costs,
of approximately $450.8 million, $33.0 million of which was used to pay the net
cost of the convertible note hedge transactions and $50.1 million of which was
used to repurchase 2.0 million shares of Teradyne’s common stock under its
existing stock repurchase program from purchasers of the Notes in privately
negotiated transactions effected through one of the initial purchasers or its
affiliates conducted concurrently with the pricing of the Note offering. The
Notes will mature on December 15, 2023, unless earlier repurchased or converted.
The Notes bear interest at a rate of 1.25% per year payable semiannually in
arrears on June 15 and December 15 of each year. The Notes will be convertible
at the option of the noteholders at any time prior to the close of business on
the business day immediately preceding September 15, 2023, only under the
following circumstances: (1) during any calendar quarter beginning after March
31, 2017 (and only during such calendar quarter), if the closing sale price of
Teradyne’s common stock, for at least 20 trading days (whether or not
consecutive) during a period of 30 consecutive trading days ending on the last
trading day of the immediately preceding calendar quarter is greater than 130%
of the conversion price on each applicable trading day; (2) during the five
business day period after any five consecutive trading day period (the
“measurement period”) in which the trading price (as defined in the Indenture)
per $1,000 principal amount of Notes for each trading day of the measurement
period was less than 98% of the product of the closing sale price of the
Teradyne’s common stock and the conversion rate on each such trading day; and
(3) upon the occurrence of specified corporate events. On or after September 15,
2023, until the close of business on the second scheduled trading day
immediately preceding the maturity date, holders may convert their Notes at any
time, regardless of the foregoing circumstances. Teradyne may satisfy its future
conversion obligation by paying cash for the principal amount of the Notes and
paying or delivering cash, shares of its common stock or a combination of cash
and shares of its common stock, at Teradyne’s election for the amount in excess
of principal. On November 4, 2021, Teradyne made an irrevocable election under
the Indenture to require the principal portion of the remaining Notes to be
settled in cash. As of July 2, 2023, the conversion price was approximately
$31.43 per share of Teradyne’s common stock. The conversion rate is subject to
adjustment under certain circumstances. As of August 4, 2023, one hundred and
thirty-four debt holders had exercised the option to convert $436.1 million
worth of notes.

Concurrent with the offering of the Notes, Teradyne entered into convertible
note hedge transactions (the “Note Hedge Transactions”) with the initial
purchasers or their affiliates (the “Option Counterparties”). The Note Hedge
Transactions cover, subject to customary anti-dilution adjustments, the number
of shares of the common stock that underlie the Notes, with a strike price equal
to the conversion price of the Notes of $31.43.

Separately and concurrent with the pricing of the Notes, Teradyne entered into
warrant transactions with the Option Counterparties (the “Warrant Transactions”)
in which it sold
net-share-settled
(or, at its election subject to certain conditions, cash-settled) warrants to
the Option Counterparties. The Warrant Transactions currently cover, subject to
customary anti-dilution adjustments, approximately 14.6 million shares of common
stock. As of July 2,
2023, the strike price of the warrants was approximately $39.44 per share. The
strike price is subject to adjustment under certain circumstances. The Warrant
Transactions could have a dilutive effect to Teradyne’s common stock to the
extent that the market price per share of Teradyne’s common stock, as measured
under the terms of the Warrant Transactions, exceeds the applicable strike price
of the warrants.

                                       15

--------------------------------------------------------------------------------
  Table of Contents  

The Note Hedge Transactions are expected to reduce the potential dilution to
Teradyne’s common stock upon any conversion of the Notes. However, the Warrant
Transactions could separately have a dilutive effect to the extent that the
market value per share of Teradyne’s common stock exceeds the applicable strike
price of the warrant. The net cost of the Note Hedge Transactions, after being
partially offset by the proceeds from the sale of the warrants, was
approximately
$33.0 million.

In connection with establishing their initial hedge of these convertible note
hedge and warrant transactions, the Option Counterparties have entered into
various derivative transactions with respect to Teradyne’s common stock and/or
purchased shares of Teradyne’s common stock or other securities, including the
Notes, concurrent with, or shortly after, the pricing of the Notes. In addition,
the Option Counterparties may modify their hedge positions by entering into or
unwinding various derivative transactions with respect to Teradyne’s common
stock or by selling Teradyne’s common stock or other securities, including the
Notes, in secondary market transactions (and may do so during any observation
period related to the conversion of the Notes). These activities could adversely
affect the value of Teradyne’s common stock and the Notes.

Originally, Teradyne allocated $100.8 million of the $460.0 million principal
amount of the Notes to the equity component, which represented a discount to the
debt and was amortized to interest expense using the effective interest method
through December 2023. Effective January 1, 2022, Teradyne adopted ASC
2020-06
using the modified retrospective method of transition and accounts for the debt
as a single liability measured at its amortized cost. As a result of the
adoption, Teradyne recorded an increase of $1.4 million to current debt for
unsettled shares, an increase of $1.8 million to deferred tax assets, an
increase of $6.6 million to long-term debt for unamortized debt discount, and an
increase to retained earnings of $94.6 million for the reclassification of the
equity component. Mezzanine equity representing unsettled shares value was
reduced to zero and additional
paid-in
capital was reduced by $100.8 million.

Debt issuance fees at July 2, 2023, have been fully amortized to interest
expense using the effective interest method over the seven-year term of the
Notes.

The tables below represent the key components of Teradyne’s convertible senior
notes:

                                     July 2,
                                                   December 31,
                                       2023            2022

                                           (in thousands)
Debt principal                       $ 32,806     $       50,228
Unamortized debt issuance fees             —                 113

Net
c
arrying amount of convertible debt   $ 32,806     $       50,115



Teradyne’s convertible senior notes were reported as current debt at July 2,
2023 and December 31, 2022.

The interest expense on Teradyne’s convertible senior notes for the three and
six months ended July 2, 2023 and July 3, 2022 was as follows:

                                                                                 For the Six Months
                                                 For the Three Months
                                                         Ended                          Ended
                                                July 2,         July 3,        July 2,
                                                                                               July 3,
                                                 2023            2022           2023            2022

                                                    (in thousands)                 (in thousands)
Contractual interest expense on the coupon     $     100       $     121      $     238       $     432
Amortization of debt issuance fees
recognized as interest expense                        —               64            113             130

Total interest expense on the convertible
debt                                           $     100       $     185      $     351       $     562



As of July 2, 2023, the conversion price was approximately $31.43 per share and
the if converted value of the notes was $116.2 million.

Additional conversions of approximately $8.9 million of debt principal will
occur in the third quarter of 2023. Teradyne expects to make principal interest
payments of $0.2 million in the next
12
months.

                                       16

--------------------------------------------------------------------------------
  Table of Contents  

Revolving Credit Facility

On May 1, 2020, Teradyne entered into a credit agreement (the “Credit
Agreement”) with Truist Bank, as administrative agent and collateral agent, and
the lenders party thereto. The Credit Agreement provided for a three-year,
senior secured revolving credit facility of $400.0 million (the “Credit
Facility”).

On December 10, 2021, the Credit Agreement was amended to extend the maturity
date of the Credit Facility to December 10, 2026. On October 5, 2022, the Credit
Agreement was amended to increase the amount of the Credit Facility to
$750.0 million from $400.0 million.

The Credit Agreement provides that, subject to customary conditions, Teradyne
may seek to obtain from existing or new lenders the available incremental amount
under the Credit Facility, not to exceed the greater of $200.0 million or 15% of
consolidated EBIDTA. The interest rate applicable to loans under the Credit
Facility are, at Teradyne’s option, equal to either a base rate plus a margin
ranging from 0.00% to 0.75% per annum or SOFR plus a margin ranging from 1.10%
to 1.85% per annum, based on the consolidated leverage ratio of Teradyne. In
addition, Teradyne will pay a commitment fee on the unused portion of the
commitments under the Credit Facility ranging from 0.15% to 0.25% per annum,
based on the then applicable consolidated leverage ratio.

Teradyne is not required to repay any loans under the Credit Facility prior to
maturity, subject to certain customary exceptions. Teradyne is permitted to
prepay all or any portion of the loans under the Credit Facility prior to
maturity without premium or penalty, other than customary SOFR breakage costs.

The Credit Agreement contains customary events of default, representations,
warranties and affirmative and negative covenants that, among other things,
limit Teradyne’s ability to sell assets, grant liens on assets, incur other
secured indebtedness and make certain investments and restricted payments, all
subject to exceptions set forth in the Credit Agreement. The Credit Agreement
also requires Teradyne to satisfy two financial ratios measured as of the end of
each fiscal quarter: a consolidated leverage ratio and an interest coverage
ratio.

The Credit Facility is guaranteed by certain of Teradyne’s domestic subsidiaries
and collateralized by assets of Teradyne and such subsidiaries, including a
pledge of 65% of the capital stock of certain foreign subsidiaries.

As of August 4, 2023, the Credit Agreement was undrawn and Teradyne was in
compliance with all covenants under the Credit Agreement.

H. PREPAYMENTS

Prepayments consist of the following:


                                                  July 2,       December 31,
                                                   2023             2022

                                                        (in thousands)
Contract manufacturer and supplier prepayments   $ 515,350     $      491,105
Prepaid maintenance and other services              15,557             14,545
Prepaid taxes                                       15,437             18,625
Other prepayments                                   14,338              8,687

Total prepayments                                $ 560,682     $      532,962



I. PRODUCT WARRANTY

Teradyne generally provides a
one-year
warranty on its products, commencing upon installation, acceptance 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 balance below is included in
other accrued liabilities.


                                                      For the Three Months           For the Six Months

                                                              Ended                         Ended
                                                      July 2,        July 3,       July 2,        July 3,
                                                       2023            2022          2023          2022

                                                                        (in thousands)
Balance at beginning of period                      $    12,901      $ 20,105      $ 14,181      $  24,577
Accruals for warranties issued during the period          3,261         6,429         7,378         10,530
Accruals related to
pre-existing
warranties                                                 (352 )      (1,611 )        (757 )       (4,370 )
Settlements made during the period                       (3,267 )      (8,887 )      (8,259 )      (14,701 )

Balance at end of period                            $    12,543      $ 16,036      $ 12,543      $  16,036




                                       17

--------------------------------------------------------------------------------
  Table of Contents  

When Teradyne receives revenue for extended warranties, beyond one year, it is
deferred and recognized on a straight-line basis over the contract period.
Related costs are expensed as incurred. The balance below is included in short
and long-term deferred revenue and customer advances.


                                                 For the Three Months            For the Six Months

                                                         Ended                         Ended
                                                 July 2,        July 3,        July 2,        July 3,
                                                  2023            2022          2023           2022

                                                                   (in thousands)
Balance at beginning of period                 $    49,343      $ 65,726      $  56,180      $  64,168
Deferral of new extended warranty revenue            4,467         9,788          8,881         21,563
Recognition of extended warranty deferred
revenue                                             (9,388 )      (9,723 )      (20,639 )      (19,940 )

Balance at end of period                       $    44,422      $ 65,791      $  44,422      $  65,791



J. STOCK-BASED COMPENSATION

On February 1, 2023 (the”Retirement Date”), Mark E. Jagiela retired as Chief
Executive Officer of Teradyne and a member of Teradyne’s Board of Directors, and
Teradyne entered into an agreement (the “Retirement Agreement”) with
Mr. Jagiela. Under the Retirement Agreement, Mr. Jagiela’s unvested time-based
restricted stock units and stock options granted prior to his Retirement Date
were modified to allow continued vesting; and any vested options or options that
vest during that period may be exercised for the remainder of the applicable
option term. During the six months ended
July 2, 2023, Teradyne recorded a stock-based compensation expense of $
5.9
 million related to the Retirement Agreement.

Under Teradyne’s stock compensation plans, Teradyne grants time-based restricted
stock units, performance-based restricted stock units and stock options, and
employees are eligible to purchase Teradyne’s common stock through its Employee
Stock Purchase Plan (“ESPP”).

Service-based restricted stock unit awards granted to employees vest in equal
annual installments over four years. Restricted stock unit awards granted to
non-employee
directors vest after a
one-year
period, with 100% of the award vesting on the earlier of (a) the first
anniversary of the grant date or (b) the date of the following year’s Annual
Meeting of Shareholders. Teradyne expenses the cost of the restricted stock unit
awards subject to time-based vesting, which is determined to be the fair market
value of the shares at the date of grant, ratably over the period during which
the restrictions lapse.

Performance-based restricted stock units (“PRSUs”) granted to Teradyne’s
executive officers may have a performance metric based on relative total
shareholder return (“TSR”). Teradyne’s three-year TSR performance is measured
against the New York Stock Exchange (“NYSE”) Composite Index. The final number
of TSR PRSUs that vest will vary based upon the level of performance achieved
from 0% to 200% of the target shares. The TSR PRSUs will vest upon the
three-year anniversary of the grant date. The TSR PRSUs are valued using a Monte
Carlo simulation model. The number of units expected to be earned, based upon
the achievement of the TSR market condition, is factored into the grant date
Monte Carlo valuation. Compensation expense is recognized on a straight-line
basis over the shorter of the three-year service period or the period from the
grant to the date described in the retirement provisions below. Compensation
expense for executive officers meeting the retirement provisions prior to the
grant date is recognized during the year following the grant. Compensation
expense is recognized regardless of the eventual number of units that are earned
based upon the market condition, provided the executive officer remains an
employee at the end of the three-year period. Compensation expense is reversed
if at any time during the three-year service period the executive officer is no
longer an employee, subject to the retirement and termination eligibility
provisions noted below.

PRSUs granted to Teradyne’s executive officers may also have a performance
metric based on three-year cumulative
non-GAAP
profit before interest and tax (“PBIT”) as a percent of Teradyne’s revenue.
Non-GAAP
PBIT is a financial measure equal to GAAP income from operations less
restructuring and other, net; amortization of acquired intangible assets;
acquisition and divestiture related charges or credits; pension actuarial gains
and losses;
non-cash
convertible debt interest expense; and other
non-recurring
gains and charges. The final number of PBIT PRSUs that vest will vary based upon
the level of performance achieved from 0% to 200% of the target shares. The PBIT
PRSUs will vest upon the three-year anniversary of the grant date. Compensation
expense is recognized on a straight-line basis over the shorter of the
three-year service period or the period from the grant date to the date
described in the retirement provisions below. Compensation expense for executive
officers meeting the retirement provisions prior to the grant date is recognized
during the year following the grant. Compensation expense is recognized based on
the number of units that are earned based upon the three-year Teradyne PBIT as a
percent of Teradyne’s revenue, provided the executive officer remains an
employee at the end of the three-year period subject to the retirement and
termination eligibility provisions noted below.

                                       18

--------------------------------------------------------------------------------
  Table of Contents  

If a PRSU recipient’s employment ends prior to the determination of the
performance percentage due to (1) permanent disability or death or
(2) retirement or termination other than for cause, after attaining both at
least age sixty and at least ten years of service, then all or a portion of the
recipient’s PRSUs (based on the actual performance percentage achieved on the
determination date) will
vest on the date the performance percentage is determined. Except as set forth
in the preceding sentence, no PRSUs will vest if the executive officer is no
longer an employee at the end of the three-year period. Stock options to
purchase Teradyne’s common stock at 100% of the fair market value on the grant
date vest in equal annual installments over four years from the grant date and
have a maximum term of seven years
.

During the six months ended July 2, 2023 and July 3, 2022, Teradyne granted
0.5 million and 0.4 million of service-based restricted stock unit awards to
employees at a weighted average grant date fair value of $102.30 and $111.21,
respectively, and $0.1 million of service-based restricted stock unit awards to
non-employee
directors at a weighted average grant date fair value of $90.50 and $106.91,
respectively.

During the six months ended July 2, 2023 and July 3, 2022, Teradyne granted
0.1 million of PBIT PRSUs with a grant date fair value of $102.23 and $110.84,
respectively.

During the six months ended July 2, 2023 and July 3, 2022, Teradyne granted
0.1 million of TSR PRSUs, with a grant date fair value of $137.64 and $101.06,
respectively. The fair value was estimated using the Monte Carlo simulation
model with the following assumptions:


                                                 For the Six Months

                                                       Ended
                                              July 2,          July 3,
                                               2023             2022

Risk-free interest rate                            3.9 %            1.4 %
Teradyne volatility-historical                    50.2 %           47.1 %
NYSE Composite Index volatility-historical        24.8 %           22.7 %
Dividend yield                                     0.4 %            0.4 %


Expected volatility was based on the historical volatility of Teradyne’s stock
and the NYSE Composite Index over the most recent three-year period. The
risk-free interest rate was determined using the U.S. Treasury yield curve in
effect at the time of grant. Dividend yield was based upon an estimated annual
dividend amount of $0.44 per share divided by Teradyne’s stock price on the
grant date of $103.44 for the 2023 grant and an estimated annual dividend amount
of $0.44 per share divided by Teradyne’s stock price on the grant date of
$112.12 for the 2022 grant.

During the six months ended July 2, 2023 and July 3, 2022, Teradyne granted
0.1 million of service-based stock options to executive officers at a weighted
average grant date fair value of $40.90 and $39.01, respectively.

The fair value of stock options was estimated using the Black-Scholes
option-pricing model with the following assumptions:


                              For the Six Months

                                    Ended
                           July 2,          July 3,
                            2023             2022

Expected life (years)           4.0              4.0
Risk-free interest rate         3.7 %            1.6 %
Volatility-historical          46.7 %           43.7 %
Dividend yield                  0.4 %            0.4 %


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 interest rate
was determined using the U.S. Treasury yield curve in effect at the time of
grant. Dividend yield was based upon an estimated annual dividend amount of
$0.44 per share divided by Teradyne’s stock price on the grant date of $103.44
for the 2023 grant and an estimated annual dividend amount of $0.44 per share
divided by Teradyne’s stock price on the grant date of $112.12 for the 2022
grant.

                                       19

--------------------------------------------------------------------------------
  Table of Contents  

K. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in
a
ccumulated other comprehensive income (loss), which are presented net of tax,
consist of the following:


                                                                  Unrealized                          Retirement
                                                 Foreign
                                                                   (Losses)                             Plans
                                                Currency           Gains on         Unrealized          Prior
                                                                                     (Losses)
                                               Translation        Marketable         Gains on          Service
                                                                                    Cash Flow
                                               Adjustment         Securities          Hedges            Credit           Total

                                                                                (in thousands)
Six Months Ended July 2, 2023
Balance at December 31, 2022, net of tax of
$0, $(2,308), $(708), $(1,130),
respectively                                  $     (39,849 )    $     (8,661 )    $     (2,517 )    $      1,159      $ (49,868 )
Other comprehensive gain before
reclassifications, net of tax of $0, $323,
$1,088, $0, respectively                             12,250             1,726             3,866                —          17,842
Amounts reclassified from accumulated other
comprehensive income, net of tax of $0,
$10, $428, $(1), respectively                            —                 33             1,524                (3 )        1,554

Net current period other comprehensive gain
(loss), net of tax of $0, $333, $1,516,
$(1), respectively                                   12,250             1,759             5,390                (3 )       19,396

Balance at July 2, 2023, net of tax of $0,
$(1,975), $808, $(1,131), respectively        $     (27,599 )    $     (6,902 )    $      2,873      $      1,156      $ (30,472 )

Six Months Ended July 3, 2022
Balance at December 31, 2021, net of tax of
$0, $1,055, $0, $(1,128), respectively        $     (10,818 )    $      3,704      $         —       $      1,166      $  (5,948 )
Other comprehensive loss before
reclassifications, net of tax of $0,
$(2,573), $0, $0, respectively                      (37,307 )          (9,910 )              —                 —         (47,217 )
Amounts reclassified from accumulated other
comprehensive income, net of tax of $0,
$59, $0, $(1), respectively                              —                209                —                 (3 )          206

Net current period other comprehensive
loss, net of tax of $0, $(2,514), $0, $(1),
respectively                                        (37,307 )          (9,701 )              —                 (3 )      (47,011 )

Balance at July 3, 2022, net of tax of $0,
$(1,459), $0, $(1,129), respectively          $     (48,125 )    $     (5,997 )    $         —       $      1,163      $ (52,959 )



Reclas
sifica
tions out of accumulated other comprehensive income (loss) to the statement of
operations for the three and six months ended July 2, 2023 and July 3, 2022,
were as follows:


                                                                                                                                                         Affected Line Item
                                                                                       For the Three Months              For the Six Months               in the Statements
Details about Accumulated Other Comprehensive Income (Loss) Components                        Ended                            Ended                        of Operations
                                                                                    July 2,            July 3,         July 2,         July 3,
                                                                                      2023              2022            2023            2022

                                                                                                          (in thousands)
Available-for-sale
marketable securities:
Unrealized losses, net of tax of $(8), $(77), $(10), $(59), respectively           $      (28 )       $    (274 )    $       (33 )    $    (209 )    Other (income) expense, net
Cash flow hedges:
Unrealized losses, net of tax of $(91), $0, $(428), $0, respectively                     (323 )              —            (1,524 )           —       Revenue
Defined benefit pension and postretirement plans:
Amortization of prior service credit, net of tax of $0, $0, $1, $1, respectively            2                 2                3              3      (a)

Total reclassifications, net of tax of $(99), $(77), $(437), $(58), respectively   $     (349 )       $    (272 )    $    (1,554 )    $    (206 )    Net income





(a) The amortization of prior service credit is included in the computation of
    net periodic postretirement benefit cost. See Note O: “Retirement Plans.”



                                       20

--------------------------------------------------------------------------------
  Table of Contents  

L. GOODWILL AND ACQUIRED INTANGIBLE ASSETS

Goodwill

Teradyne performs its annual goodwill impairment test as required under the
provisions of ASC
350-10,
“Intangibles—Goodwill and Other”
on December 31 of each fiscal year unless interim indicators of impairment
exist. In the six months ended July 2, 2023, there were no interim indicators of
impairment. Goodwill is considered impaired when the net book value of a
reporting unit exceeds its estimated fair value.

The changes in the carrying amount of goodwill by reportable segments for the
six months ended July 2, 2023, were as follows:


                                                   Wireless        Semiconductor
                                    Robotics         Test              Test             System Test          Total

                                                                     (in thousands)
Balance at December 31, 2022
Goodwill                            $ 383,166     $  361,819      $       262,077      $     158,699      $ 1,165,761
Accumulated impairment losses              —        (353,843 )           (260,540 )         (148,183 )       (762,566 )

Total Goodwill                        383,166          7,976                1,537             10,516          403,195

Foreign currency translation
adjustment                              8,857             —                    58                 —             8,915

Balance at July 2, 2023
Goodwill                              392,023        361,819              262,135            158,699        1,174,676
Accumulated impairment losses              —        (353,843 )           (260,540 )         (148,183 )       (762,566 )

Total Goodwill                      $ 392,023     $    7,976      $         1,595      $      10,516      $   412,110



Intangible Assets

Teradyne reviews long-lived assets for impairment whenever events or changes in
business circumstances indicate that the carrying amount of the assets may not
be fully recoverable or that the useful lives of these assets are no longer
appropriate.

Amortizable intangible assets consist of the following and are included in
intangible assets, net on the balance sheet:


                                         Gross                                                           Net
                                                                                     Foreign
                                        Carrying            Accumulated             Currency          Carrying
                                                                                   Translation
                                       Amount (1)         Amortization (1)         Adjustment          Amount

                                                                   (in thousands)
Balance at July 2, 2023
Developed technology                  $    267,708       $         (237,078 )     $      (5,444 )     $  25,186
Customer relationships                      52,109                  (46,699 )               200           5,610
Tradenames and trademarks                   59,007                  (43,904 )            (1,288 )        13,815

Total intangible assets               $    378,824       $         (327,681 )     $      (6,532 )     $  44,611

Balance, December 31, 2022
Developed technology                  $    270,967       $         (234,208 )     $      (5,935 )     $  30,824
Customer relationships                      57,739                  (51,186 )               172           6,725
Tradenames and trademarks                   59,387                  (41,930 )            (1,528 )        15,929

Total intangible assets               $    388,093       $         (327,324 )     $      (7,291 )     $  53,478





(1) In 2023, $9.3 million of amortizable intangible assets became fully amortized
    and have been eliminated from the gross carrying amount and accumulated
    amortization.


Aggregate intangible asset amortization expense was $4.8 million and
$9.6 million, respectively, for the three and six months ended July 2, 2023
,
and $4.9 million and $9.9 million, respectively
,
for the three and six months ended July 3, 2022.

                                       21

--------------------------------------------------------------------------------
  Table of Contents  

Estimated intangible asset amortization expense for each of the five succeeding
fiscal years and thereafter is as follows:

Year          Amortization Expense
                 (in thousands)
2023         $                9,443
2024                         18,834
2025                         11,352
2026                          2,379
2027                          1,162
Thereafter                    1,441


M. 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            For the Six Months

                                                        Ended                          Ended
                                                July 2,         July 3,        July 2,        July 3,
                                                 2023            2022           2023           2022

                                                      (in thousands, except per share amounts)
Net income for basic and diluted net
income per share                              $   120,050      $ 197,787      $ 203,581      $ 359,715

Weighted average common shares-basic              154,760        159,563        155,332        160,805
Effect of dilutive potential common
shares:
Convertible note hedge warrant shares (1)           8,876          9,029          8,929          9,528
Incremental shares from assumed conversion
of convertible notes (2)                              742          1,900            828          2,220
Restricted stock units                                323            581            389            730
Stock options                                          43             54             45             61
Employee stock purchase plan                            7             32              7             23

Dilutive potential common shares                    9,991         11,596         10,198         12,562

Weighted average common shares-diluted            164,751        171,159        165,530        173,367

Net income per common share-basic             $      0.78      $    1.24      $    1.31      $    2.24

Net income per common share-diluted           $      0.73      $    1.16      $    1.23      $    2.07





(1) Convertible notes hedge warrant shares were calculated using the difference
    between the average Teradyne stock price for the period and the warrant
    price, multiplied by the number of warrant shares. The result of this
    calculation, representing the total intrinsic value of the warrant, was
    divided by the average Teradyne stock price for the period.


(2) Incremental shares from assumed conversion of the convertible notes were
    calculated using the difference between the average Teradyne stock price for
    the period and the conversion price, multiplied by the number of convertible
    notes shares. The result of this calculation, representing the total
    intrinsic value of the convertible debt, was 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 July 2, 2023
,
excludes the effect of the potential vesting of 0.4 million and 0.5 million,
respectively, of restricted stock units 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 3, 2022
,
excludes the effect of the potential vesting of 0.1 million and 0.2 million,
respectively, of restricted stock units because the effect would have been
anti-dilutive.

N. RESTRUCTURING AND OTHER

During the three months ended July 2, 2023, Teradyne recorded $5.1 million of
severance charges related to headcount reductions of 112 people primarily in
Semiconductor Test and Robotics
which included charges related to a voluntary early retirement program for
employees meeting certain conditions
and a charge of $1.1 million for an increase in environmental liability.

During the three months ended July 3, 2022, Teradyne recorded a charge of
$1.5 million for an increase in environmental and legal liabilities.


                                       22

--------------------------------------------------------------------------------
  Table of Contents  

During the six months ended July 2, 2023, Teradyne recorded $
7.2
 million of severance charges related to headcount reductions of 1
79
 people primarily in Semiconductor Test and Robotics
 which included charges related to a voluntary early retirement program for
employees meeting certain conditions
and a charge of $
1.1
 million for an increase in environmental liability.

During the six months ended July 3, 2022, Teradyne recorded a charge of
$14.7 million related to the arbitration claim filed against Teradyne and
AutoGuide related to an
earn-out
dispute, which was settled on March 25, 2022 for $26.7 million, and a charge of
$2.0 million for an increase in environmental and legal liabilities.

O. RETIREMENT PLANS

ASC 715, “Compensation—Retirement Benefits,” requires an employer with defined
benefit plans or other postretirement benefit plans to recognize an asset or a
liability on its balance sheet for the overfunded or underfunded status of the
plans as defined by ASC 715. The pension asset or liability represents a
difference between the fair value of the pension plan’s assets and the projected
benefit obligation at December 31. Teradyne uses a December 31 measurement date
for all its 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 the U.S. qu
alifie
d pension plan consist primarily of fixed income and equity securities. In
addition, Teradyne has an unfunded supplemental executive def
ined b
enefit 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 (the “IRC”), as well as unfunded qualified foreign
plans.

In the six months ended July 2, 2023 and July 3, 2022, Teradyne contributed
$1.5 million and $1.6 million, respectively, to the U.S. supplemental executive
defined benefit pension plan, and $0.6 million and $0.5 million, respectively,
to certain qualified pension plans for
non-U.S.
subsidiaries.

For the three and six months ended July 2, 2023 and July 3, 2022, Teradyne’s net
periodic pension cost was comprised of the following:




                                              For the Three Months Ended

                                       July 2, 2023                 July 3, 2022
                                   United                      United

                                   States        Foreign       States        Foreign

                                                    (in thousands)
Service cost                      $    272      $     110      $   397      $     180
Interest cost                        1,714            263        1,221            120
Expected return on plan assets      (1,286 )           (9 )       (732 )          (18 )
Net actuarial loss (gain)               24             —           (45 )           —

Total net periodic pension cost   $    724      $     364      $   841      $     282




                                                For the Six Months Ended

                                       July 2, 2023                 July 3, 2022
                                   United                       United

                                   States        Foreign        States        Foreign

                                                     (in thousands)
Service cost                      $    543      $     220      $    794      $     386
Interest cost                        3,425            526         2,443            238
Expected return on plan assets      (2,571 )          (18 )      (1,463 )          (38 )
Net actuarial loss (gain)               24             —            (45 )           —

Total net periodic pension cost   $  1,421      $     728      $  1,729      $     586



Postretirement Benefit Plan

In addition to receiving pension benefits, Teradyne employees in the United
States who meet early retirement eligibility requirements as of their
termination dates may participate in Teradyne’s Welfare Plan, which includes
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.

During the three and six months ended July 2, 2023, Teradyne recorded special
termination benefit charges associated with a voluntary early retirement
program.

                                       23

--------------------------------------------------------------------------------
  Table of Contents  

For the three and six months ended July 2, 2023 and July 3, 2022, Teradyne’s net
periodic postretirement benefit cost was comprised of the following:


                                                For the Three Months               For the Six Months

                                                        Ended                            Ended

                                              July 2,           July 3,        July 2,           July 3,
                                               2023              2022            2023             2022

                                                                    (in thousands)
Service cost                                 $       8         $      15       $     17         $      32
Interest cost                                       60                45            121                88
Amortization of prior service credit                (2 )              (2 )           (4 )              (4 )
Special termination benefits                       369                —             369                —
Net actuarial loss                                  30                54             30                54

Total net periodic postretirement
benefit cost                                 $     465         $     112       $    533         $     170



P. COMMITMENTS AND CONTINGENCIES

Purchase Commitments

As of July 2, 2023, Teradyne had entered into purchase commitments for certain
components and materials. The purchase commitments covered by the agreements
aggregate to approximately $554.5 million, of which $482.4 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 such as, but not limited to, patent, employment,
commercial and environmental matters. Teradyne believes that it has meritorious
defenses against all pending claims and intends to vigorously contest them.
While it is not possible to predict or determine the outcomes of any pending
claims or to provide possible ranges of losses that may arise, Teradyne believes
the potential losses associated with all of these actions are unlikely to have a
material adverse effect on its business, financial position or results of
operations.

On March 8, 2021, Industrial Automation LLC, sellers of AutoGuide, submitted a
demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware
alleging that Teradyne and AutoGuide breached certain provisions of the
Membership Interests Purchase Agreement (the “Purchase Agreement”), dated as of
October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The
arbitration demand sought full acceleration of the maximum
earn-out
amount payable under the Purchase Agreement, or $106.9 million, for the alleged
breach of the
earn-out
provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim
was settled for $26.7 million. As a result, Teradyne has no remaining
earn-out
obligations.

Guarantees and Indemnification Obligations

Teradyne provides indemnification, to the extent permitted by law, to its
officers, directors, employees and agents for liabilities arising from certain
events or occurrences, while the officer, director, employee, or agent, is or
was serving, at Teradyne’s request in
such capacity. Teradyne may enter into indemnification agreements with certain
of its officers and directors. With respect to acquisitions, Teradyne provides
indemnifications to or assumes indemnification obligations for the current and
former directors, officers and employees of the acquired companies in accordance
with the acquired companies’
by-laws
and charter. As a matter of practice, Teradyne has maintained directors’ and
officers’ liability insurance coverage including coverage for directors and
officers of acquired companies.

Teradyne enters into agreements in the ordinary course of business with
customers, resellers, distributors, integrators and suppliers. Most of these
agreements require Teradyne to defend and/or indemnify the other party against
intellectual property infringement claims brought by a third party with respect
to Teradyne’s products. From time to time, Teradyne also indemnifies customers
and business partners for damages, losses and liabilities they may suffer or
incur relating to personal injury, personal property damage, product liability,
breach of confidentiality obligations and environmental claims relating to the
use of Teradyne’s products and services or resulting from the acts or omissions
of Teradyne, its employees, authorized agents or subcontractors. On occasion,
Teradyne has also provided guarantees to customers regarding the delivery and
performance of its products in addition to the warranty described below.

As a matter of ordinary course of business, Teradyne warrants that its products
will substantially perform in accordance with its standard published
specifications in effect at the time of delivery. Most warranties have a
one-year
duration commencing from installation. A provision is recorded upon revenue
recognition to cost of revenues for estimated warranty expense based upon
historical experience. When Teradyne receives revenue for extended warranties
beyond the standard duration, the revenue is deferred

                                       24

--------------------------------------------------------------------------------
  Table of Contents  

and recognized on a straight-line basis over the contract period. Related costs
are expensed as incurred. As of July 2, 2023 and December 31, 2022, Teradyne had
a product warranty accrual of $12.5 million and $14.2 million, respectively,
included in other accrued liabilities and revenue deferrals related to extended
warranties of $44.4 million and $56.2 million, respectively, included in short
and long-term deferred revenue and customer advances.

In addition, in the ordinary course of business, Teradyne provides minimum
purchase guarantees to certain vendors to ensure continuity of supply against
the market demand. Although some of these guarantees provide penalties for
cancellations and/or modifications to the purchase commitments as the market
demand decreases, most of the guarantees do not. Therefore, as the market demand
decreases, Teradyne
re-evaluates
these guarantees and determines what charges, if any, should be recorded.

With respect to its agreements covering product, business or entity divestitures
and acquisitions, Teradyne provides certain representations, warranties and
covenants to purchasers and agrees to indemnify and hold such purchasers
harmless against breaches of such representations, warranties and covenants.
Many of the indemnification claims have a definite expiration date while some
remain in force indefinitely. With respect to its acquisitions, Teradyne may,
from time to time, assume the liability for certain events or occurrences that
took place prior to the date of acquisition.

As a matter of ordinary course of business, Teradyne occasionally guarantees
certain indebtedness obligations of its subsidiary companies, limited to the
borrowings from financial institutions, purchase commitments to certain vendors
and lease commitments to landlords.

Based on historical experience and information known as of July 2, 2023 and
December 31, 2022, except for product warranty, Teradyne has not recorded any
liabilities for these guarantees and obligations because the amount would be
immaterial.

Q. INCOME TAXES

A reconciliation of the United States federal statutory corporate tax rate to
Teradyne’s effective tax rate was as follows:


                                                     For the Three Months              For the Six Months

                                                            Ended                            Ended

                                                  July 2,            July 3,        July 2,          July 3,
                                                    2023              2022           2023             2022
U.S. statutory federal tax rate                        21.0 %            21.0 %         21.0 %           21.0 %
Discrete expense related to foreign currency
gain/loss                                               1.2               0.6            0.7              0.6
Non-deductible
officers’ compensation                                  1.0               1.4            1.0              1.3
International provisions of the U.S. Tax Cuts
and Jobs Act of 2017                                   (2.5 )            (1.0 )         (2.8 )           (1.2 )
Tax credits                                            (2.4 )            (2.0 )         (2.4 )           (1.8 )
Discrete benefit related to equity
compensation                                           (0.1 )            (0.2 )         (1.4 )           (2.9 )
Foreign taxes                                          (1.0 )            (3.2 )         (0.8 )           (3.3 )
Other, net                                             (0.3 )             0.5            0.4              0.4

Effective tax rate                                     16.9 %            17.1 %         15.7 %           14.1 %



On a quarterly basis, Teradyne evaluates the realizability of the deferred tax
assets by jurisdiction and assesses the need for a valuation allowance. As of
July 2, 2023, Teradyne believes that it will ultimately realize the deferred tax
assets recorded on the condensed consolidated balance sheet. However, should
Teradyne believe that it is
more-likely-than-not
that the deferred tax assets would not be realized, the tax provision would
increase in the period in which Teradyne determined that the realizability was
not likely. Teradyne considers the probability of future taxable income and
historical profitability, among other factors, in assessing the realizability of
the deferred tax assets.

As of July 2, 2023 and December 31, 2022, Teradyne had $15.9 million and
$15.6 million, respectively, of reserves for uncertain tax positions. The
$0.3 million net increase in reserves for uncertain tax positions is related to
U.S. federal research and development credits generated in the current year.

As of July 2, 2023, Teradyne estimates that it is reasonably possible that the
balance of unrecognized tax benefits may decrease approximately $0.1 million in
the next twelve months because of a lapse of statutes of limitation. The
estimated decrease relates to U.S. state research and development credits.

Teradyne recognizes interest and penalties related to income tax matters in
income tax expense. As of July 2, 2023 and December 31, 2022, $0.5 million and
$0.4 million, respectively, of interest and penalties were accrued for uncertain
tax positions. For the six months ended July 2, 2023 and July 3, 2022, an
expense of $0.1 million and $0.1 million, respectively, was recorded for
interest and penalties related to income tax items.


                                       25

--------------------------------------------------------------------------------
  Table of Contents  

Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements
of an agreement with the Singapore Economic Development Board under which
certain headcount and spending requirements must be met. The tax savings due to
the tax holiday for the six months ended July 2, 2023, was
$
1.0
 million, or $
0.01
per diluted share. The tax savings due to the tax holiday for the six months
ended July 3, 2022
,
was $
8.3
 million, or $
0.05
per diluted share. In November 2020, Teradyne entered into an agreement with the
Singapore Economic Development Board which extended our Singapore tax holiday
under substantially similar terms to the agreement which expired on December 31,
2020. The new tax holiday is scheduled to expire on December 31, 2025.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into
law. The IRA introduced a 15% alternative minimum tax based on the financial
statement income of certain large corporations (“CAMT”), effective January 1,
2023. Teradyne currently does not expect the CAMT to have a material impact on
its financial results.

R. SEGMENT INFORMATION

Teradyne has four reportable segments (Semiconductor Test, System Test, Wireless
Test and Robotics). Each of the reportable segments represents an individual
operating segment.

The Semiconductor Test segment includes operations related to the design,
manufacturing and marketing of semiconductor test products and services. The
System Test segment includes operations related to the design, manufacturing and
marketing of products and services for defense/aerospace instrumentation test,
storage and system level test, and circuit-board test. The Wireless Test segment
includes operations related to the design, manufacturing and marketing of
wireless test products and services. The Robotics segment includes operations
related to the design, manufacturing and marketing of collaborative robotic
arms, autonomous mobile robots and advanced robotic control software. Each
operating segment has a segment manager who is 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 (loss) 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, 2022.

Segment information for the three and six months ended July 2, 2023 and July 3,
2022 is as follows:


                                                                                                            Corporate

                                            Semiconductor       System                      Wireless           and

                                                Test             Test        Robotics         Test         Eliminations        Consolidated

                                                                                    (in thousands)
Three Months Ended July 2, 2023
Revenues                                   $       474,708     $  94,272     $  71,634      $  43,823     $           —       $      684,437
Income (loss) before income taxes (1)(2)           129,040        28,599       (26,401 )       12,020              1,144             144,402
Total assets (3)                                 1,416,109       191,002       685,132         88,869          1,013,784           3,394,896
Three Months Ended July 3, 2022
Revenues                                   $       541,348     $ 134,702     $ 101,055      $  63,854     $         (193 )    $      840,766
Income (loss) before income taxes (1)(2)           177,782        54,042        (6,406 )       25,393            (12,219 )           238,592
Total assets (3)                                 1,449,878       229,359       644,099        118,445          1,046,645           3,488,426
Six Months Ended July 2, 2023
Revenues                                   $       889,717     $ 168,903     $ 160,848      $  82,498     $           —       $    1,301,966
Income (loss) before income taxes (1)(2)           225,225        43,874       (44,891 )       21,372             (4,094 )           241,486
Total assets (3)                                 1,416,109       191,002       685,132         88,869          1,013,784           3,394,896
Six Months Ended July 3, 2022
Revenues                                   $     1,023,688     $ 253,371     $ 204,244      $ 115,372     $         (539 )    $    1,596,136
Income (loss) before income taxes (1)(2)           327,487        95,365       (11,504 )       44,012            (36,409 )           418,951
Total assets (3)                                 1,449,878       229,359       644,099        118,445          1,046,645           3,488,426




(1) Included in Corporate and Eliminations are: interest income, interest
    expense, net foreign exchange gains (losses), intercompany eliminations,
    legal and environmental fees, severance charges, pension, and an expense for
    the modification of Teradyne’s former chief executive officer’s outstanding
    equity awards.


(2) Included in income (loss) before taxes are charges related to restructuring
    and other, and inventory charges.


(3) Total assets are attributable to each segment. Corporate assets consist of
    cash and cash equivalents, marketable securities, and certain other assets.



                                       26

--------------------------------------------------------------------------------
  Table of Contents  

Included in each segment are charges and credits in the following line items in
the statements of operations:


                                                           For the Three Months          For the Six Months

                                                                  Ended                         Ended

                                                          July 2,         July 3,       July 2,       July 3,
                                                           2023             2022         2023           2022

                                                                            (in thousands)
Semiconductor Test:
Cost of revenues—inventory charge                       $     4,184       $  2,071     $   7,952      $  2,315
Restructuring and other—employee severance                    2,485             —          3,279
System Test:
Cost of revenues—inventory charge                       $        —        $     —      $   1,113      $     —
Restructuring and other—employee severance                       —              —            642            —
Robotics:
Restructuring and other—employee severance              $     1,638       $     —      $   2,071      $     —
Cost of revenues—inventory charge                               769            831         1,551         1,197
Wireless:
Cost of revenues—inventory charge                       $        —        $  2,099     $     725      $  2,976
Corporate and Eliminations:
Restructuring and other—other                           $     1,100          1,500         1,100         2,000
Restructuring and other—employee severance                       —              —          1,124            —
Selling and administrative—equity modification charge            —              —          5,889            —
Restructuring and other—legal settlement charge                  —              —             —         14,700


S. SHAREHOLDERS’ EQUITY

Stock Repurchase Program

In January 2023, Teradyne’s Board of Directors cancelled its January 2021
repurchase program and approved a new repurchase program for up to $2.0 billion
of common stock. Teradyne intends to repurchase up to $500.0 million of its
common stock in 2023 based on market conditions.

During the six months ended July 2, 2023, Teradyne repurchased 2.2 million
shares of common stock for a total cost of $229.5 million at an average price of
$102.35 per share. As of January 1, 2023, share repurchases in excess of
issuances are subject to a 1% excise tax, which is i
n
cluded
as
part of the cost basis of the shares acquired.

During the six months ended July 3, 2022, Teradyne repurchased 5.0 million
shares of common stock for $532.8 million at an average price of $107.50 per
share.

The total cost of shares acquired includes commissions and, starting in 2023,
related excise tax, and is recorded as a reduction to retained earnings.

Dividend

Holders of Teradyne’s common stock are entitled to receive dividends when they
are declared by Teradyne’s Board of Directors.

In January 2023 and May 2023, Teradyne’s Board of Directors declared a quarterly
cash dividend of $0.11 per share. Dividend payments for the three and six months
ended July 2, 2023
,
were $17.0 million and $34.2 million, respectively.

In January 2022 and May 2022, Teradyne’s Board of Directors declared a quarterly
cash dividend of $0.11 per share. Dividend payments for the three and six months
ended July 3, 2022
,
were $17.5 million and $35.4 million, respectively.

                                       27

--------------------------------------------------------------------------------
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, 2022. 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 automated test equipment and robotics
solutions. We design, develop, manufacture and sell automatic test systems and
robotics products. Our automatic test systems are used to test semiconductors,
wireless products, data storage and complex electronics systems in many
industries including the consumer electronics, wireless, automotive, industrial,
computing, communications, and aerospace and defense industries. Our robotics
products include collaborative robotic arms and autonomous mobile robots
(“AMRs”) used by global manufacturing, logistics and industrial customers to
improve quality, increase manufacturing and material handling efficiency and
decrease manufacturing and logistics costs. Our automatic test equipment and
robotics products and services include:

  •   semiconductor test (“Semiconductor Test”) systems;



     •    storage and system level test (“Storage Test”) systems, defense/aerospace
          (“Defense/Aerospace”) test instrumentation and systems, and circuit-board
          test and inspection (“Production Board Test”) systems (collectively these
          products represent “System Test”);



  •   wireless test (“Wireless Test”) systems; and



  •   robotics (“Robotics”) products.


The market for our test products is concentrated with a limited number of
significant customers accounting for a substantial portion of the purchases of
test equipment. A few customers drive significant demand for our test products
both through direct sales and sales to the customers’ supply partners. We expect
that sales of our test products will continue to be concentrated with a limited
number of significant customers for the foreseeable future.

In the second quarter of 2023, the demand in our Semiconductor Test business
continued to be impacted by a correction cycle driven by excess semiconductor
inventory, primarily in the mobility segment of the market. The depth of this
slowdown and the timing of the recovery are uncertain, however, strong
automotive demand and in Memory test, the growth of DDR5 and High Bandwidth
Memory (“HBM”) devices for data center applications are partially offsetting
these declines. Over the midterm we expect the ramp of 3 nanometer and
gate-all-around process technology, increasing multichip packaging, additional
device complexity and unit growth will drive additional demand for test.

Our Robotics segment consists of Universal Robots A/S (“UR”), a leading supplier
of collaborative robotic arms and Mobile Industrial Robots A/S (“MiR”), a
leading maker of AMRs for industrial automation. The market for our Robotics
segment products is dependent on the adoption of new automation technologies by
large manufacturers as well as small and medium enterprises (“SMEs”) throughout
the world. In the second quarter of 2023, Robotics demand has softened
significantly due to slowing global industrial activity and macro-economic
headwinds.

In the second quarter of 2023, we met customer demand, in part, through faster
than expected recoveries from supply chain constraints, while inflation had
minimal effects on our results. Both our test and robotics businesses may still
be influenced by supply constraints during the remainder of 2023, which could
impact our revenue and costs. For example, our third quarter 2023 forecast
excludes approximately $35 million of revenue, primarily in our test businesses,
due to these continued supply chain constraints.

Our financial statements are denominated in U.S. dollars. While the majority of
our revenues are in U.S. dollars, approximately 70 percent of our Robotics
revenue is denominated in foreign currencies. In 2022, the strengthening of the
U.S. dollar was a factor in lower than forecasted revenues in our Robotics
segment. Strengthening of the U.S. dollar would negatively affect Robotics
revenue growth in 2023.

                                       28

--------------------------------------------------------------------------------
  Table of Contents  

Our corporate strategy continues to focus on profitably gaining market share in
our test businesses through the introduction of differentiated products that
target expanding segments and accelerating growth through continued investment
in our Robotics businesses. We plan to execute on our strategy while balancing
capital allocations between returning capital to our shareholders through stock
repurchases and dividends and using capital for opportunistic acquisitions.

Impact of the
COVID-19
Pandemic on our Business

The novel coronavirus
(COVID-19)
pandemic resulted in government authorities implementing numerous measures in an
effort to contain the spread of the virus, such as travel bans and restrictions,
limitations on gatherings or social distancing requirements, quarantines,
shelter-in-place
orders, vaccination and testing mandates, and business limitations and
shutdowns. These measures impacted our
day-to-day
operations and disrupted our business, workforce and operations, as well as the
operations of our customers, contract manufacturers and suppliers. In the second
quarter of 2023 the
COVID-19
pandemic had significantly less impact on our business than in prior quarters
since the start of the pandemic in 2020. However, we are unable to accurately
predict the future impact of
COVID-19,
which will depend on future developments that are highly uncertain and cannot be
predicted with accuracy, including, but not limited to, any new surges or new
strains or variants of the virus in areas where we do business.

Due to the
COVID-19
pandemic, there has been uncertainty and disruption in the global economy and
our markets. We are not aware of any specific event or circumstance that would
require an update to our estimates or judgments or a revision of the carrying
value of our assets or liabilities as of August 4, 2023, the date of issuance of
this Quarterly Report on Form
10-Q.

We believe the
COVID-19
pandemic and the numerous measures implemented by authorities in response,
adversely impacted our results of operations, including by increasing costs, but
we cannot accurately estimate the amount of the impact to our financial results.
In addition, the pandemic disrupted our contract manufacturers and suppliers,
and resulted in supply constraints and in short-term cost increases to meet
customer demand.

Supply Chain Constraints and Inflationary Pressures

The global supply shortage of electrical components, including semiconductor
chips, continued to impact our supply chain in the second quarter of 2023. We
are seeing improvements related to supply constraints however, we experienced,
and expect to continue to experience through the remainder of 2023, increases in
our lead times and costs for certain components for certain of our products. In
addition, while not material, inflationary pressures contributed to increased
costs for product components and wage inflation, impacting our cost of products,
gross margin and profit for the quarter. Our supply chain team, and our
suppliers, continue to manage numerous supply, production, and logistics
obstacles. While not material through the second quarter of 2023, in an effort
to mitigate these risks, in some cases, we have incurred higher costs due to
investment in supply chain resiliency and to secure available inventory or have
extended or placed
non-cancellable
purchase commitments with semiconductor suppliers, which introduces inventory
risk if our forecasts and assumptions prove inaccurate. We have also sourced
components from additional suppliers and multi-sourced and
pre-ordered
components and finished goods inventory in some cases in an effort to reduce the
impact of the adverse supply chain conditions we have experienced. There is no
assurance that these efforts will be successful. Our third quarter 2023 forecast
excludes approximately $35 million of revenue, primarily in our test businesses,
due to these continued supply chain constraints.

See Part II—Item 1A, “Risk Factors,” included in our Annual Report on Form
10-K
for the fiscal year ended December 31, 2022 for our risk factors regarding risks
associated with both the
COVID-19
pandemic and international conflicts.

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 July 2, 2023, 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, 2022, except as noted below.

Critical accounting estimates are complex and may require significant judgment
by management. Changes to the underlying assumptions may have a material impact
on our financial condition and results of operations. These estimates may
change, as new events occur and additional information is obtained. Actual
results could differ significantly from these estimates under different
assumptions or conditions.

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 under
different assumptions or conditions.

                                       29

--------------------------------------------------------------------------------
  Table of Contents  

            SELECTED RELATIONSHIPS WITHIN THE CONDENSED CONSOLIDATED
                            STATEMENTS OF OPERATIONS

                                                 For the Three Months               For the Six Months

                                                         Ended                            Ended

                                               July 2,           July 3,        July 2,           July 3,
                                                2023              2022            2023             2022

Percentage of revenues:
Revenues:
Products                                             79 %              83 %           78 %              83 %
Services                                             21                17             22                17

Total revenues                                      100               100            100               100
Cost of revenues:
Cost of products                                     32                33             32                32
Cost of services                                      9                 7             10                 7

Total cost of revenues (exclusive of
acquired intangible assets amortization
shown separately below)                              41                40             42                40

Gross profit                                         59                60             58                60
Operating expenses:
Selling and administrative                           21                17             23                18
Engineering and development                          15                13             16                14
Acquired intangible assets amortization               1                —               1                 1
Restructuring and other                               1                —               1                 1

Total operating expenses                             38                31             40                33

Income from operations                               20                29             18                27
Non-operating
(income) expense:
Interest income                                      (1 )              —              (1 )              —
Interest expense                                     —                 —              —                 —
Other (income) expense, net                          —                  1             —                  1

Income before income taxes                           21                28             19                26
Income tax provision                                  4                 5              3                 4

Net income                                           18 %              24 %           16 %              23 %



Results of Operations

Second Quarter 2023 Compared to Second Quarter 2022

Revenues

Revenues by our reportable segments were as follows:

                                For the Three Months

                                       Ended
                               July 2,         July 3,        Dollar
                                2023             2022         Change

                                          (in millions)
Semiconductor Test           $     474.7       $  541.3      $  (66.6 )
System Test                         94.3          134.7         (40.4 )
Robotics                            71.6          101.1         (29.5 )
Wireless Test                       43.8           63.9         (20.1 )
Corporate and Eliminations            —            (0.2 )         0.2

                             $     684.4       $  840.8      $ (156.4 )



The decrease in Semiconductor Test revenues of $66.6 million, or 12.3%, was
driven primarily by lower tester sales for Mobility applications, partially
offset by higher Memory test sales in Flash Final Test. The decrease in System
Test revenues of $40.4 million, or 30.0%, was primarily due to lower sales in
Storage Test of system level and hard disk drive testers, partially offset by
higher sales in Defense/Aerospace. The decrease in Robotics revenues of
$29.5 million, or 29.2%, was driven primarily by softening demand due to slowing
global industrial activity and macro-economic headwinds and the impact of the
transformation of Universal Robots distribution channel. The decrease in
Wireless Test revenues of $20.1 million, or 31.5%, was primarily due to a
decrease in connectivity test products.

                                       30

--------------------------------------------------------------------------------
  Table of Contents  

Revenues by country as a percentage of total revenues were as follows (1):

                   For the Three Months

                           Ended
                 July 2,           July 3,
                  2023              2022

United States          17 %              14 %
Korea                  15                17
Taiwan                 15                25
China                  13                13
Japan                  13                 5
Europe                  9                 8
Malaysia                5                 5
Thailand                4                 6
Philippines             4                 3
Singapore               3                 2
Rest of World           2                 2

                      100 %             100 %





(1) Revenues attributable to a country are based on location of customer site.


Gross Profit

Our gross profit was as follows:


                              For the Three Months

                                      Ended
                              July 2,        July 3,        Dollar/Point
                               2023            2022            Change

                                            (in millions)
Gross profit                $     402.5      $  506.4      $       (103.9 )
Percent of total revenues          58.8 %        60.2 %              (1.4 )


Gross profit as a percent of revenue decreased by 1.4 points, primarily due to
lower volume.

Selling and Administrative

Selling and administrative expenses were as follows:


                               For the Three Months

                                       Ended
                               July 2,        July 3,        Dollar
                                2023            2022         Change

                                          (in millions)
Selling and administrative   $     145.7      $  139.5      $    6.2
Percent of total revenues           21.3 %        16.6 %


The increase of $6.2 million in selling and administrative expenses was
primarily due to higher variable compensation.

                                       31

--------------------------------------------------------------------------------
  Table of Contents  

Engineering and Development

Engineering and development expenses were as follows:


                                  For the Three Months

                                         Ended
                                July 2,          July 3,          Dollar
                                 2023             2022            Change

                                              (in millions)
Engineering and development   $     105.7      $     112.0      $      (6.3 )
Percent of total revenues            15.4 %           13.3 %


The decrease of $6.3 million in engineering and development expenses was
primarily due to lower spending in Semiconductor Test, partially offset by
higher spending in Robotics.

Restructuring and Other

During the three months ended July 2, 2023, we recorded $5.1 million of
severance charges related to headcount reductions of 112 people primarily in
Semiconductor Test and Robotics which included charges related to a voluntary
early retirement program for employees meeting certain conditions and a charge
of $1.1 million for an increase in environmental liability.

During the three months ended July 3, 2022, we recorded a charge of $1.5 million
for an increase in environmental and legal liabilities.

Interest and Other


                                     For the Three Months

                                            Ended
                                 July 2,             July 3,              Dollar
                                   2023                2022               Change

                                                  (in millions)
Interest income               $         (6.4 )    $         (1.0 )    $         (5.4 )
Interest expense                         1.0                 0.9      $          0.1
Other (income) expense, net              0.8                 9.4      $         (8.6 )


Interest income increased by $5.4 million primarily due to higher interest rates
in 2023. Other (income) expense, net decreased by $8.6 million primarily due to
changes in unrealized gains/losses on equity securities, from a $6.6 million
loss in 2022 to a $2.6 million gain in 2023.

Income (Loss) Before Income Taxes


                                        For the Three Months

                                               Ended
                                    July 2,             July 3,              Dollar
                                      2023                2022               Change

                                                     (in millions)
Semiconductor Test               $        129.0      $        177.8      $        (48.8 )
System Test                                28.6                54.0               (25.4 )
Wireless Test                              12.0                25.4               (13.4 )
Robotics                                  (26.4 )              (6.4 )             (20.0 )
Corporate and Eliminations (1)              1.1               (12.2 )              13.3

                                 $        144.4      $        238.6      $        (94.2 )





(1) Included in Corporate and Eliminations are interest income, interest expense,
    net foreign exchange gains (losses), intercompany eliminations, legal and
    environmental fees, and severance charges.


The decrease in income before income taxes in Semiconductor Test was driven
primarily by lower tester sales for Mobility applications, partially offset by
higher Memory test sales in Flash Final Test. The decrease in income before
income taxes in System Test was primarily due to lower sales in Storage Test of
system level and hard disk drive testers. The decrease in income before income
taxes in Wireless Test was driven primarily by a decrease in sales of
connectivity test products. The decrease in income before income taxes in
Robotics was driven primarily by softening demand due to slowing global
industrial activity and macro-economic headwinds and the impact of the
transformation of Universal Robots distribution channel. The income before
income taxes in Corporate and Eliminations was primarily due to changes in
unrealized gains/losses on equity securities.

                                       32

--------------------------------------------------------------------------------
  Table of Contents  

Income Taxes

The effective tax rate for the three months ended July 2, 2023 and July 3, 2022,
was 16.9% and 17.1%, respectively. The decrease in the effective tax rate from
the three months ended July 3, 2022, to the three months ended July 2, 2023,
resulted from an increase in benefit from the international provisions of the
U.S. Tax Cuts and Jobs Act of 2017, a reduction in
non-deductible
officers’ compensation and an increase in benefit related to tax credits. These
reductions in expense were partially offset by a projected shift in the
geographic distribution of income, which increases the income subject to
taxation in higher tax rate jurisdictions relative to lower tax rate
jurisdictions and an increase in discrete expense related to foreign currency
gain or loss.

Six Months 2023 Compared to Six Months 2022

Revenues

Revenues by our reportable segments were as follows:


                                    For the Six Months

                                           Ended
                                July 2,            July 3,              Dollar
                                  2023               2022               Change

                                                 (in millions)
Semiconductor Test           $        889.7     $      1,023.7      $       (134.0 )
System Test                           168.9              253.4               (84.5 )
Robotics                              160.8              204.2               (43.4 )
Wireless Test                          82.5              115.4               (32.9 )
Corporate and Eliminations               —                (0.5 )               0.5

                             $      1,302.0     $      1,596.1      $       (294.1 )



The decrease in Semiconductor Test revenues of $134.0 million, or 13.1%, was
driven primarily by lower tester sales for Mobility and Compute applications,
partially offset by higher Memory test sales in Flash Final Test. The decrease
in System Test revenues of $84.5 million, or 33.3%, was primarily due to lower
sales in Storage Test of system level and hard disk drive testers. The decrease
in Robotics revenues of $43.4 million, or 21.3%, was driven primarily by
softening demand due to slowing global industrial activity and macro-economic
headwinds and the impact of the transformation of Universal Robots distribution
channel. The decrease in Wireless Test revenues of $32.9 million, or 28.5%, was
primarily due to a decrease in sales of connectivity test products.

Revenues by country as a percentage of total revenues were as follows (1):

                    For the Six Months

                          Ended
                July 2,           July 3,
                  2023             2022

United States         17 %              15 %
Taiwan                16                22
Korea                 14                15
China                 12                16
Japan                 11                 5
Europe                10                 9
Singapore              5                 3
Philippines            5                 3
Malaysia               4                 5
Thailand               3                 5
Rest of World          3                 2

                     100 %             100 %





(1) Revenues attributable to a country are based on location of customer site.



                                       33

--------------------------------------------------------------------------------
  Table of Contents  

Gross Profit

Our gross profit was as follows:


                                    For the Six Months

                                          Ended
                               July 2,             July 3,           Dollar/Point
                                 2023                2022               Change

                                                (in millions)
Gross profit                $        758.9      $        961.3      $       (202.4 )
Percent of total revenues             58.3 %              60.2 %              (1.9 )


Gross profit as a percent of revenue decreased by 1.9 points, primarily due to a
lower volume.

Selling and Administrative

Selling and administrative expenses were as follows:


                                     For the Six Months

                                           Ended
                                July 2,             July 3,              Dollar
                                  2023                2022               Change

                                                 (in millions)
Selling and administrative   $        296.7      $        279.7      $         17.0
Percent of total revenues              22.8 %              17.5 %


The increase of $17.0 million in selling and administrative expenses was
primarily due to the charge of $5.9 million recorded in the six months ended
July 2, 2023, related to the modification of Teradyne’s chief executive
officer’s outstanding equity awards in connection with his retirement and higher
spending in System Test, Semiconductor Test and Robotics.

Engineering and Development

Engineering and development expenses were as follows:


                                      For the Six Months

                                            Ended
                                 July 2,             July 3,              Dollar
                                   2023                2022               Change

                                                  (in millions)
Engineering and development   $        211.5      $        220.1      $         (8.6 )
Percent of total revenues               16.2 %              13.8 %


The decrease of $8.6 million in engineering and development expenses was due to
lower variable compensation and lower spending in Semiconductor Test, partially
offset by higher spending in Robotics.

Restructuring and Other

During the six months ended July 2, 2023, we recorded $7.2 million of severance
charges related to headcount reductions of 179 people primarily in Semiconductor
Test and Robotics which included charges related to a voluntary early retirement
program for employees meeting certain conditions and a charge of $1.1 million
for an increase in environmental liability.

During the six months ended July 3, 2022, we recorded a charge of $14.7 million
related to the arbitration claim filed against Teradyne and AutoGuide related to
an
earn-out
dispute, which was settled on March 25, 2022 for $26.7 million, and a charge of
$2.0 million for an increase in environmental and legal liabilities.

                                       34

--------------------------------------------------------------------------------
  Table of Contents  

Interest and Other


                                                          For the Six Months

                                                                Ended
                                                    July 2,                July 3,                Dollar
                                                     2023                   2022                  Change

                                                                        (in millions)
Interest income                                $           (11.6 )    $            (1.7 )    $            (9.9 )
Interest expense                                             2.0                    1.9                    0.1
Other (income) expense, net                                  0.9                   14.6                  (13.7 )


Interest income increased by $9.9 million primarily due to higher interest rates
in 2023. Other (income) expense, net decreased by $13.7 million primarily due to
changes in unrealized gains/losses on equity securities, from an $8.8 million
loss in 2022 to a $4.6 million gain in 2023.

Income (Loss) Before Income Taxes


                                         For the Six Months

                                               Ended
                                    July 2,             July 3,              Dollar
                                      2023                2022               Change

                                                     (in millions)
Semiconductor Test               $        225.2      $        327.5      $       (102.3 )
System Test                                43.9                95.4               (51.5 )
Wireless Test                              21.4                44.0               (22.6 )
Robotics                                  (44.9 )             (11.5 )             (33.4 )
Corporate and Eliminations (1)             (4.1 )             (36.4 )              32.3

                                 $        241.5      $        419.0      $       (177.5 )





(1) Included in Corporate and Eliminations are interest income, interest expense,
    net foreign exchange gains (losses), intercompany eliminations, legal and
    environmental fees, severance charges, pension, and an expense for the
    modification of Teradyne’s former chief executive officer’s outstanding
    equity awards.


The decrease in income before income taxes in Semiconductor Test was driven
primarily by lower tester sales for Mobility and Compute applications, partially
offset by higher Memory test sales in Flash Final Test. The decrease in income
before income taxes in System Test was primarily due to lower sales in Storage
Test of system level and hard disk drive testers. The decrease in income before
income taxes in Wireless Test was driven primarily by a decrease in sales of
connectivity test products. The decrease in income before income taxes in
Robotics was driven primarily by softening demand due to slowing global
industrial activity and macro-economic headwinds and the impact of the
transformation of Universal Robots distribution channel. The decrease in loss
before income taxes in Corporate and Eliminations was primarily due to legal
settlement charges in 2022 related to litigation for the
earn-out
dispute in connection with the AutoGuide acquisition, changes in unrealized
gains/losses on equity securities and higher interest income.

Income Taxes

The effective tax rate for the six months ended July 2, 2023 and July 3, 2022,
was 15.7% and 14.1%, respectively. The increase in the effective tax rate from
the six months ended July 3, 2022, to the six months ended July 2, 2023, was
primarily attributable to a projected shift in the geographic distribution of
income, which increases the income subject to taxation in higher tax rate
jurisdictions relative to lower tax rate jurisdictions and a reduction in
discrete benefit from equity compensation. These increases were partially offset
by an increase in benefit from the international provisions of the U.S. Tax Cuts
and Jobs Act of 2017.

Contractual Obligations

There have been no changes outside of the ordinary course of business to our
contractual obligations as disclosed in our Annual Report on
Form 10-K
for the year ended December 31, 2022.

                                       35

--------------------------------------------------------------------------------
  Table of Contents  

Liquidity and Capital Resources

Our cash, cash equivalents and marketable securities balances decreased by
$192.1 million in the six months ended July 2, 2023, to $813.1 million.

Operating activities during the six months ended July 2, 2023, provided cash of
$162.1 million. Changes in operating assets and liabilities used cash of
$121.7 million due to a $46.1 million increase in operating assets and a
$75.5 million decrease in operating liabilities.

The increase in operating assets was primarily due to a $29.6 million increase
in prepayments and other assets due to prepayments to our contract
manufacturers, a $13.8 million increase in inventories and a $2.7 million
increase in accounts receivable.

The decrease in operating liabilities was due to a $48.9 million decrease in
accrued employee compensation, a $34.9 million decrease in deferred revenue and
customer advance payments, a $13.6 million decrease in income taxes, and
$2.5 million of retirement plan contributions, partially offset by a
$13.0 million increase in accounts payable, and an $11.4 million increase in
other accrued liabilities.

Investing activities during the six months ended July 2, 2023, used cash of
$121.7 million due to $99.0 million used for purchases of marketable securities,
and $80.7 million used for purchases of property, plant and equipment, partially
offset by $35.6 million and $22.0 million in proceeds from sales and maturities
of marketable securities, respectively, and $0.5 million in proceeds from the
cancellation of Teradyne owned life insurance policies related to the cash
surrender value.

Financing activities during the six months ended July 2, 2023, used cash of
$283.2 million due to $227.8 million used for the repurchase of 2.2 million
shares of common stock at an average price of $102.35 per share, $20.3 million
used for payment related to net settlements of employee stock compensation
awards, $34.2 million used for dividend payments, and $17.5 million used for
payments of convertible debt principal, partially offset by $16.6 million from
the issuance of common stock under employee stock purchase and stock option
plans.

Operating activities during the six months ended July 3, 2022, provided cash of
$122.9 million. Changes in operating assets and liabilities used cash of
$309.1 million. This was due to a $287.8 million increase in operating assets
and a $21.3 million decrease in operating liabilities.

The increase in operating assets was due to a $146.4 million increase in
accounts receivable, a $94.8 million prepayments and other assets due to
prepayments to our contract manufacturers, and a $46.7 million increase in
inventories.

The decrease in operating liabilities was due to a $61.7 million decrease in
accrued employee compensation, a $6.9 million decrease in other accrued
liabilities, and $2.6 million of retirement plan contributions, partially offset
by a $25.0 million increase in accounts payable, a $14.2 million increase in
deferred revenue and customer advance payments, and a $10.8 million increase in
income taxes.

Investing activities during the six months ended July 3, 2022, used cash of
$54.3 million due to $247.9 million used for purchases of marketable securities,
and $89.7 million used for purchases of property, plant and equipment, partially
offset by $139.7 million and $143.6 million in proceeds from maturities and
sales of marketable securities, respectively.

Financing activities during the six months ended July 3, 2022, used cash of
$626.8 million due to $532.8 million used for the repurchase of 5.0 million
shares of common stock at an average price of $107.5 per share, $42.3 million
used for payments of convertible debt principal, $35.4 million used for dividend
payments, and $32.8 million used for payment related to net settlements of
employee stock compensation awards, partially offset by $16.5 million from the
issuance of common stock under employee stock purchase and stock option plans.

In January 2023 and May 2023, Teradyne’s Board of Directors declared a quarterly
cash dividend of $0.11 per share. Dividend payments for the three and six months
ended July 2, 2023, were $17.0 million and $34.2 million, respectively.

In January 2022 and May 2022, Teradyne’s Board of Directors declared a quarterly
cash dividend to $0.11 per share. Dividend payments for the three and six months
ended July 3, 2022, were $17.5 million and $35.4 million, respectively.

In January 2023, our Board of Directors cancelled the 2021 repurchase program
and approved a new repurchase program for up to $2.0 billion of common stock. We
intend to repurchase up to $500.0 million of common stock in 2023 subject to
market conditions.

                                       36

--------------------------------------------------------------------------------
  Table of Contents  

During the six months ended July 2, 2023, we repurchased 2.2 million shares of
common stock for $227.8 million, which excludes related excise tax, at an
average price of $102.35 per share. During the six months ended July 3, 2022, we
repurchased 5.0 million shares of common stock for $532.8 million at an average
price of $107.50 per share.

While we declared a quarterly cash dividend and authorized a share repurchase
program, we may reduce or eliminate the cash dividend or share repurchase
program in the future. Future cash dividends and stock repurchases are subject
to the discretion of our Board of Directors, which will consider, among other
things, our earnings, capital requirements and financial condition.

On May 1, 2020, we entered into a credit agreement providing a three-year,
senior secured revolving credit facility of $400 million. On December 10, 2021,
the credit agreement was amended to extend the senior secured revolving credit
facility to December 10, 2026. On October 5, 2022, the credit agreement was
amended to increase the amount of the credit facility to $750.0 million from
$400.0 million. As of August 4, 2023, we have not borrowed any funds under the
credit facility.

We believe our cash, cash equivalents, marketable securities and senior secured
revolving credit facility will be sufficient
to
pay
our
quarterly dividend and meet our working capital and expenditure needs for at
least the next twelve months. Inflation has not had a significant long-term
impact on earnings. At this time, the
COVID-19
pandemic has not had an impact on our liquidity, but there is no assurance that
continued impacts resulting from the pandemic will not have an adverse effect in
the future.

Equity Compensation Plans

In addition to our 1996 Employee Stock Purchase Program as discussed in Note Q:
“Stock-Based Compensation” in our 2022 Annual Report on Form
10-K,
we have 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 and directors. Both plans were approved by our
shareholders.

Recently Issued Accounting Pronouncements

For the six months ended July 2, 2023, there were no recently issued accounting
pronouncements that had, or are expected to have, a material impact to our
consolidated financial statements.

Item 3: Quantitative and Qualitative Disclosures about Market Risks


For “Quantitative and Qualitative Disclosures about Market Risk” affecting
Teradyne, see Part 2 Item 7A, “Quantitative and Qualitative Disclosures about
Market Risks,” in our Annual Report on Form
10-K
filed with the SEC on February 22, 2023. There were no material changes in our
exposure to market risk from those set forth in our Annual Report on Form
10-K
for the fiscal year ended December 31, 2022.

In addition to market risks described in our Annual Report on Form
10-K,
we have an equity price risk related to the fair value of our convertible senior
unsecured notes issued in December 2016. In December 2016, Teradyne issued
$460 million aggregate principal amount of 1.25% convertible senior unsecured
notes (the “Notes”) due December 15, 2023. As of July 2, 2023, $32.8 million of
principal remained outstanding and the Notes had a fair value of $115.8 million.
The table below provides a sensitivity analysis of hypothetical 10% changes of
Teradyne’s stock price as of the end of the second quarter of 2023 and the
estimated impact on the fair value of the Notes. The selected scenarios are not
predictions of future events, but rather are intended to illustrate the effect
such event may have on the fair value of the Notes. The fair value of the Notes
is subject to equity price risk due to the convertible feature. The fair value
of the Notes will generally increase as Teradyne’s common stock price increases
and will generally decrease as the common stock price declines in value. The
change in stock price affects the fair value of the Notes, but does not impact
Teradyne’s financial position, cash flows or results of operations due to the
fixed nature of the debt obligation. Additionally, we carry the Notes at face
value less unamortized discount on our balance sheet, and we present the fair
value for required disclosure purposes only. In connection with the offering of
the Notes we also sold warrants to the option counterparties. These transactions
have been accounted for as an adjustment to our shareholders’ equity. The
convertible note hedge transactions are expected to reduce the potential equity
dilution upon conversion of the Notes. The warrants along with any shares
issuable upon conversion of the Notes will have a dilutive effect on our
earnings per share to the extent that the average market price of our common
stock for a given reporting period exceeds the applicable strike price or
conversion price of the warrants or Notes, respectively.

                                       37

--------------------------------------------------------------------------------
  Table of Contents  

                                                                                         Hypothetical
                                                                                          percentage
Hypothetical Change in Teradyne                             Estimated change          increase (decrease)
Stock Price                              Fair Value           in fair value              in fair value

10% Increase                            $    127,385        $          11,607                         10.0 %
No Change                                    115,778                       —                            —
10% Decrease                                 104,171                  (11,607 )                      (10.0 )



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)
or Rule
15d-15(f)
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.

There have been no changes in our internal control over financial reporting (as
defined in Rules
13a-15(f)
and
15d-15(f)
under the Exchange Act) during the three months ended July 2, 2023, that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.

                           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 such as, but not limited to, patent, employment,
commercial and environmental matters. Teradyne believes that it has meritorious
defenses against all pending claims and intends to vigorously contest them.
While it is not possible to predict or determine the outcomes of any pending
claims or to provide possible ranges of losses that may arise, Teradyne believes
the potential losses associated with all of these actions are unlikely to have a
material adverse effect on its business, financial position or results of
operations.

On March 8, 2021, Industrial Automation LLC submitted a demand for arbitration
against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne
and AutoGuide breached certain provisions of the Membership Interests Purchase
Agreement (the “Purchase Agreement”), dated as of October 18, 2019, among
Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought
full acceleration of the maximum
earn-out
amount payable under the Purchase Agreement, or $106.9 million, for the alleged
breach of the
earn-out
provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim
was settled for $26.7 million. As a result, Teradyne has no remaining
earn-out
obligations.

Item 1A: Risk Factors


In addition to other information set forth in this Form
10-Q,
including the risk discussed below, 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, 2022, 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 and many of these risks could be further
increased due to the
COVID-19
pandemic.

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.

Adverse developments affecting the financial services industry, including events
or risks involving liquidity, defaults or
non-performance
by financial institutions, could have a material adverse effect on our business,
financial condition or results of operations.

On March 10, 2023,
Silicon Valley Bank
(SVB), who is a lender in our revolving credit facility and where we maintain
certain accounts and cash deposits, was placed into receivership with the
Federal Deposit Insurance Corporation (FDIC), which resulted in all funds held
at SVB being temporarily inaccessible by SVB’s customers. As of March 13, 2023,
access to our cash and cash equivalents at SVB was fully restored. Although our
cash balances at SVB are insignificant and we do not expect further developments
at SVB to have a material impact on our cash and cash equivalents, we do hold
cash balances in several large financial institutions significantly in excess of
FDIC and global insurance limits. If other banks and financial institutions with
whom we have banking relationships enter receivership or become insolvent in the
future, we may be unable to access, and we may lose, some or all of our existing
cash, cash equivalents and investments to the extent those funds are not insured
or otherwise protected by the FDIC.

                                       38

--------------------------------------------------------------------------------
  Table of Contents  

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds


In January 2023, Teradyne’s Board of Directors cancelled our 2021 repurchase
program and approved a new repurchase program for up to $2.0 billion of common
stock. During the six months ended July 2, 2023, we repurchased 2.2 million
shares of common stock for a total cost of $229.5 million at an average price of
$102.35 per share. We record share repurchases at cost, which includes broker
commissions and related excise taxes. During the six months ended July 3, 2022,
we repurchased 5.0 million shares of common stock for $532.8 million at an
average price of $107.5 per share.

The following table includes information with respect to repurchases we made of
our common stock during the three and six months ended July 2, 2023, (in
thousands except per share price):

                                                                                                                                   Maximum Number

                                       Total                                                       Total Number of             (or Approximate Dollar

                                     Number of                                                    Shares (or Units)             Value) of Shares (or

                                       Shares                             Average                Purchased as Part of          Units) that may Yet Be

                                     (or Units)                       Price Paid per              Publicly Announced            Purchased Under the

Period                               Purchased                        Share (or Unit)             Plans or Programs            Plans or Programs (2)

April 3, 2023 – April 30, 2023               410                     $          100.73                             409        $              1,865,063
May 1, 2023 – May 28, 2023                   469                     $           92.88                             467        $              1,821,664
May 29, 2023 – July 2, 2023                  474                     $          108.31                             473        $              1,770,455

                                           1,354 (1)                 $          100.66 (1)                       1,349





(1) Includes approximately four thousand shares at an average price of $97.95
    withheld from employees for the payment of taxes.


(2) As of January 1, 2023, share repurchases net of share issuances are subject
    to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred is
    included as part of the cost basis of shares repurchased in the Condensed
    Consolidated Statements of Convertible Common Shares and Stockholders’
    Equity.


We satisfy U.S. federal and state minimum withholding tax obligations 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

Item 5: Other Information


10b5-1
Trading Plans

Our officers (as defined in Rule
16a-1(f)
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”))
(“Section 16 Officers”) and directors from time to time enter into contracts,
instructions or written plans for the purchase or sale of our securities that
are intended to satisfy the conditions specified in Rule
10b5-1(c)
under the Exchange Act for an affirmative defense against liability for trading
in securities on the basis of material nonpublic information. We refer to these
contracts, instructions, and written plans as “Rule
10b5-1
trading plans” and each one as a “Rule
10b5-1
trading plan.” During our
fiscal quarter
ended
July 2, 2023
, the following Section 16 Officers and directors adopted, modified or
terminated Rule
10b5-1
trading plans:

Sanjay Mehta, Chief Financial Officer and Treasurer

Sanjay Mehta, our Chief Financial Officer and Treasurer, entered into a new Rule
10b5-1
trading plan on May 12, 2023. The Rule
10b5-1
trading plan provides that Mr. Mehta, acting through a broker, may sell up to an
aggregate of (i) 19,494 shares of our common stock, (ii) 100% of the (net)
shares resulting from the vesting of 16,603 (gross) restricted stock units (net
shares are net of tax withholding), and (iii)
100
% of the (net) shares resulting from the exercise of up to 8,827 stock options
(net shares are net of the stock option exercise prices). Subject to price
limits, the first trade under the Rule
10b5-1
trading plan is scheduled for August 14, 2023. The plan is scheduled to
terminate on May 3, 2024, subject to earlier termination upon the sale of all
shares subject to the plan, upon termination by Mr. Mehta or the broker, or as
otherwise provided in the
plan.

                                       39

--------------------------------------------------------------------------------
  Table of Contents  

Item 6: Exhibits



Exhibit

Number                                   Description

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 of Principal Executive Officer 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 of Principal Financial Officer pursuant to 18 U.S.C.
           1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
           2002 (furnished herewith)   

101.INS    Inline XBRL Instance Document

101.SCH    Inline XBRL Taxonomy Extension Schema Document

101.CAL    Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF    Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB    Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE    Inline XBRL Taxonomy Extension Presentation Linkbase Document

104        Cover Page Interactive Data File (formatted as Inline XBRL, and
           contained in Exhibit 101)



                                       40

--------------------------------------------------------------------------------
  Table of Contents  

                                   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/ S
                ANJAY
                  M
                EHTA
            Sanjay Mehta
           Vice President,
Chief Financial Officer and Treasurer
      (Duly Authorized Officer
  and Principal Financial Officer)
           August 4, 2023




                                       41
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>d417157dex311.htm
<DESCRIPTION>EX-31.1
<TEXT>
                                                                    Exhibit 31.1

                                 CERTIFICATIONS

I, Gregory S. Smith, 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 functions):

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 4, 2023

By:    /s/ GREGORY S. SMITH
         Gregory S. Smith
      Chief Executive Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>d417157dex312.htm
<DESCRIPTION>EX-31.2
<TEXT>
                                                                    Exhibit 31.2

                                 CERTIFICATIONS

I, Sanjay Mehta, 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 functions):

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 4, 2023

By:      /s/ SANJAY MEHTA
           Sanjay Mehta
      Chief Financial Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>d417157dex321.htm
<DESCRIPTION>EX-32.1
<TEXT>
                                                                    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 ended July 2, 2023, as filed with the Securities and
Exchange Commission on the date hereof (the “Report”), I, Gregory S. Smith,
Chief Executive Officer of the Company, certify pursuant to 18 U.S.C
Section 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 S. SMITH
   Gregory S. Smith
Chief Executive Officer
    August 4, 2023
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>d417157dex322.htm
<DESCRIPTION>EX-32.2
<TEXT>
                                                                    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 ended July 2, 2023, as filed with the Securities and
Exchange Commission on the date hereof (the “Report”), I, Sanjay Mehta, Chief
Financial Officer of the Company, certify pursuant to 18 U.S.C Section 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/ SANJAY MEHTA
     Sanjay Mehta
Chief Financial Officer
    August 4, 2023
</TEXT>
</DOCUMENT>
</SUBMISSION>