10-Q
falseP3YP3YP0MP7Y20200000097210Q3--12-31P3YIncludes $1.7 million and $1.5 million in 2020 and 2019, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”Includes $6.1 million and $4.9 million in 2020 and 2019, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.”Incremental shares from assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.57, multiplied by 14.6 million 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.Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.62, multiplied by 14.6 million 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.Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges.Included in Corporate and Other are: contingent consideration adjustments, employee severance charges, interest (income) and expense, net foreign exchange (gains) and losses, pension and postretirement plan actuarial (gains) and losses and settlement charges, intercompany eliminations, and certain acquisition related charges and compensation.Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. 0000097210 2020-01-01 2020-09-27 0000097210 2020-09-27 0000097210 2019-12-31 0000097210 2020-06-29 2020-09-27 0000097210 2019-07-01 2019-09-29 0000097210 2019-01-01 2019-09-29 0000097210 2019-01-01 2019-12-31 0000097210 2019-09-29 0000097210 2018-12-31 0000097210 2020-05-01 2020-05-01 0000097210 2020-01-31 0000097210 2019-01-31 0000097210 2020-05-31 0000097210 2019-05-31 0000097210 2020-08-31 0000097210 2019-08-31 0000097210 2020-10-26 0000097210 2020-05-01 0000097210 2020-06-28 0000097210 2019-06-30 0000097210 ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member us-gaap:CashMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member us-gaap:CashEquivalentsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CashEquivalentsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashEquivalentsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member us-gaap:CashAndCashEquivalentsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CashAndCashEquivalentsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashAndCashEquivalentsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member ter:MarketableSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:MarketableSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member ter:LongTermMarketableSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member ter:LongTermMarketableSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:LongTermMarketableSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member ter:PrepaidExpenseMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:PrepaidExpenseMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember 2020-09-27 0000097210 ter:MonteCarloSimulationValuationModelMember us-gaap:FairValueInputsLevel3Member ter:MobileIndustrialRobotsApsMember 2020-09-27 0000097210 ter:MonteCarloSimulationValuationModelMember us-gaap:FairValueInputsLevel3Member ter:AutoguideLlcMember 2020-09-27 0000097210 us-gaap:USTreasurySecuritiesMember 2020-09-27 0000097210 us-gaap:CommercialPaperMember 2020-09-27 0000097210 us-gaap:CorporateDebtSecuritiesMember 2020-09-27 0000097210 ter:DebtMutualFundsMember 2020-09-27 0000097210 us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2020-09-27 0000097210 us-gaap:CertificatesOfDepositMember 2020-09-27 0000097210 us-gaap:ForeignCorporateDebtSecuritiesMember 2020-09-27 0000097210 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-09-27 0000097210 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-09-27 0000097210 ter:LongTermMarketableSecuritiesMember 2020-09-27 0000097210 ter:MarketableSecuritiesMember 2020-09-27 0000097210 ter:ConvertibleNoteMember 2020-09-27 0000097210 ter:ConvertibleNotesHedgeAndWarrantMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:OtherCurrentLiabilitiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherCurrentLiabilitiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member ter:LongTermContingentConsiderationMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:LongTermContingentConsiderationMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member ter:DebtMutualFundsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:DebtMutualFundsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CertificatesOfDepositMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignCorporateDebtSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignCorporateDebtSecuritiesMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member ter:DebtMutualFundsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2020-09-27 0000097210 us-gaap:NondesignatedMember us-gaap:ForeignExchangeForwardMember ter:PrepaidExpenseMember 2020-09-27 0000097210 ter:SemiconductorTestMember 2020-09-27 0000097210 ter:IndustrialAutomationMember 2020-09-27 0000097210 ter:SystemsTestGroupMember 2020-09-27 0000097210 ter:WirelessTestMember 2020-09-27 0000097210 ter:CorporateAndOthersMember 2020-09-27 0000097210 ter:AutoguideLlcMember 2020-09-27 0000097210 ter:MobileIndustrialRobotsApsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member ter:EquityMutualFundsMember 2020-09-27 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:EquityMutualFundsMember 2020-09-27 0000097210 us-gaap:NondesignatedMember us-gaap:ForeignExchangeForwardMember us-gaap:OtherCurrentLiabilitiesMember 2020-09-27 0000097210 us-gaap:DevelopedTechnologyRightsMember 2020-09-27 0000097210 us-gaap:CustomerRelationshipsMember 2020-09-27 0000097210 us-gaap:TrademarksAndTradeNamesMember 2020-09-27 0000097210 ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2020-09-27 0000097210 srt:MaximumMember 2020-09-27 0000097210 us-gaap:ShortTermContractWithCustomerMember 2020-09-27 0000097210 us-gaap:LongTermContractWithCustomerMember 2020-09-27 0000097210 us-gaap:RevolvingCreditFacilityMember 2020-09-27 0000097210 ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashEquivalentsMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashEquivalentsMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashEquivalentsMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member us-gaap:CashAndCashEquivalentsMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CashAndCashEquivalentsMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashAndCashEquivalentsMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member ter:MarketableSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:MarketableSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member ter:LongTermMarketableSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member ter:LongTermMarketableSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:LongTermMarketableSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member ter:PrepaidExpenseMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:PrepaidExpenseMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000097210 us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0000097210 us-gaap:CommercialPaperMember 2019-12-31 0000097210 us-gaap:USTreasurySecuritiesMember 2019-12-31 0000097210 us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2019-12-31 0000097210 ter:DebtMutualFundsMember 2019-12-31 0000097210 us-gaap:CertificatesOfDepositMember 2019-12-31 0000097210 us-gaap:ForeignCorporateDebtSecuritiesMember 2019-12-31 0000097210 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000097210 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000097210 ter:MarketableSecuritiesMember 2019-12-31 0000097210 ter:LongTermMarketableSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:OtherCurrentLiabilitiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherCurrentLiabilitiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member ter:ContingentConsiderationMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:ContingentConsiderationMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member ter:LongTermContingentConsiderationMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:LongTermContingentConsiderationMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000097210 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember ter:DebtMutualFundsMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember ter:DebtMutualFundsMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2019-12-31 0000097210 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignCorporateDebtSecuritiesMember 2019-12-31 0000097210 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignCorporateDebtSecuritiesMember 2019-12-31 0000097210 us-gaap:NondesignatedMember us-gaap:ForeignExchangeForwardMember ter:PrepaidExpenseMember 2019-12-31 0000097210 ter:EquityMutualFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000097210 ter:EquityMutualFundsMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000097210 us-gaap:NondesignatedMember us-gaap:ForeignExchangeForwardMember us-gaap:OtherCurrentLiabilitiesMember 2019-12-31 0000097210 ter:IndustrialAutomationMember 2019-12-31 0000097210 ter:SystemsTestGroupMember 2019-12-31 0000097210 ter:WirelessTestMember 2019-12-31 0000097210 ter:SemiconductorTestMember 2019-12-31 0000097210 us-gaap:DevelopedTechnologyRightsMember 2019-12-31 0000097210 us-gaap:CustomerRelationshipsMember 2019-12-31 0000097210 us-gaap:TrademarksAndTradeNamesMember 2019-12-31 0000097210 ter:BacklogMember 2019-12-31 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SocMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MemoryMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SystemsTestGroupMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:UniversalRobotsMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember us-gaap:CorporateAndOtherMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:SocMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:MemoryMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:SystemsTestGroupMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:UniversalRobotsMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:WirelessTestMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember 2020-06-29 2020-09-27 0000097210 ter:SocMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:MemoryMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:SystemsTestGroupMember 2020-06-29 2020-09-27 0000097210 ter:UniversalRobotsMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 ter:WirelessTestMember 2020-06-29 2020-09-27 0000097210 us-gaap:CorporateAndOtherMember 2020-06-29 2020-09-27 0000097210 ter:SocMember srt:AsiaPacificMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:MemoryMember srt:AsiaPacificMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:SystemsTestGroupMember srt:AsiaPacificMember 2020-06-29 2020-09-27 0000097210 ter:UniversalRobotsMember ter:IndustrialAutomationMember srt:AsiaPacificMember 2020-06-29 2020-09-27 0000097210 ter:IndustrialAutomationMember ter:MobileIndustrialRobotsApsMember srt:AsiaPacificMember 2020-06-29 2020-09-27 0000097210 ter:WirelessTestMember srt:AsiaPacificMember 2020-06-29 2020-09-27 0000097210 srt:AsiaPacificMember 2020-06-29 2020-09-27 0000097210 ter:SocMember srt:AmericasMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:MemoryMember srt:AmericasMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:SystemsTestGroupMember srt:AmericasMember 2020-06-29 2020-09-27 0000097210 ter:UniversalRobotsMember ter:IndustrialAutomationMember srt:AmericasMember 2020-06-29 2020-09-27 0000097210 ter:IndustrialAutomationMember ter:MobileIndustrialRobotsApsMember srt:AmericasMember 2020-06-29 2020-09-27 0000097210 ter:WirelessTestMember srt:AmericasMember 2020-06-29 2020-09-27 0000097210 us-gaap:CorporateAndOtherMember srt:AmericasMember 2020-06-29 2020-09-27 0000097210 srt:AmericasMember 2020-06-29 2020-09-27 0000097210 ter:SocMember us-gaap:EMEAMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:MemoryMember us-gaap:EMEAMember ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:SystemsTestGroupMember us-gaap:EMEAMember 2020-06-29 2020-09-27 0000097210 ter:UniversalRobotsMember ter:IndustrialAutomationMember us-gaap:EMEAMember 2020-06-29 2020-09-27 0000097210 ter:IndustrialAutomationMember ter:MobileIndustrialRobotsApsMember us-gaap:EMEAMember 2020-06-29 2020-09-27 0000097210 ter:WirelessTestMember us-gaap:EMEAMember 2020-06-29 2020-09-27 0000097210 us-gaap:EMEAMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 srt:AsiaPacificMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 srt:AmericasMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 us-gaap:EMEAMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:IndustrialAutomationMember ter:MobileIndustrialRobotsApsMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember us-gaap:CorporateAndOtherMember 2020-06-29 2020-09-27 0000097210 srt:AsiaPacificMember us-gaap:CorporateAndOtherMember 2020-06-29 2020-09-27 0000097210 us-gaap:EMEAMember us-gaap:CorporateAndOtherMember 2020-06-29 2020-09-27 0000097210 country:US 2020-06-29 2020-09-27 0000097210 us-gaap:ForeignPlanMember 2020-06-29 2020-09-27 0000097210 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-06-29 2020-09-27 0000097210 us-gaap:OtherNonoperatingIncomeExpenseMember 2020-06-29 2020-09-27 0000097210 ter:SemiconductorTestMember 2020-06-29 2020-09-27 0000097210 ter:IndustrialAutomationMember 2020-06-29 2020-09-27 0000097210 ter:CorporateAndOthersMember 2020-06-29 2020-09-27 0000097210 ter:TerCorporateAndEliminationsMember ter:UniversalRobotsMember 2020-06-29 2020-09-27 0000097210 ter:ConvertibleNotesHedgeAndWarrantMember 2020-06-29 2020-09-27 0000097210 ter:ConvertibleNoteMember 2020-06-29 2020-09-27 0000097210 ter:DisputeInRespectOfContingentConsiderationMember ter:AutoguideLlcMember 2020-06-29 2020-09-27 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-06-29 2020-09-27 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-06-29 2020-09-27 0000097210 us-gaap:RestrictedStockUnitsRSUMember 2020-06-29 2020-09-27 0000097210 us-gaap:EmployeeStockOptionMember 2020-06-29 2020-09-27 0000097210 us-gaap:CommonStockMember 2020-06-29 2020-09-27 0000097210 us-gaap:AdditionalPaidInCapitalMember 2020-06-29 2020-09-27 0000097210 us-gaap:ProductMember 2020-06-29 2020-09-27 0000097210 us-gaap:ServiceMember 2020-06-29 2020-09-27 0000097210 us-gaap:RetainedEarningsMember 2020-06-29 2020-09-27 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-29 2020-09-27 0000097210 ter:CorporateAndEliminationsMember 2020-06-29 2020-09-27 0000097210 ter:CorporateAndEliminationsMember ter:UniversalRobotsMember us-gaap:OtherOperatingIncomeExpenseMember 2020-06-29 2020-09-27 0000097210 ter:CorporateAndEliminationsMember ter:AutoguideMember us-gaap:OtherOperatingIncomeExpenseMember 2020-06-29 2020-09-27 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:OtherOperatingIncomeExpenseMember ter:CorporateAndEliminationsMember 2020-06-29 2020-09-27 0000097210 ter:UnitedStatesPlansMember ter:AnnuityPlanForParticipantsInTheUsQualifiedPensionPlanMember 2020-06-29 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SemiconductorTestMember ter:SocMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MemoryMember ter:SemiconductorTestMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SystemsTestGroupMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember us-gaap:CorporateAndOtherMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:SemiconductorTestMember ter:SocMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:MemoryMember ter:SemiconductorTestMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:SystemsTestGroupMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:WirelessTestMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-29 0000097210 ter:SemiconductorTestMember ter:SocMember 2019-07-01 2019-09-29 0000097210 ter:MemoryMember ter:SemiconductorTestMember 2019-07-01 2019-09-29 0000097210 ter:SystemsTestGroupMember 2019-07-01 2019-09-29 0000097210 ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-07-01 2019-09-29 0000097210 ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-07-01 2019-09-29 0000097210 ter:WirelessTestMember 2019-07-01 2019-09-29 0000097210 us-gaap:CorporateAndOtherMember 2019-07-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:SemiconductorTestMember ter:SocMember 2019-07-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:MemoryMember ter:SemiconductorTestMember 2019-07-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:SystemsTestGroupMember 2019-07-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-07-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-07-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:WirelessTestMember 2019-07-01 2019-09-29 0000097210 srt:AsiaPacificMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember ter:SemiconductorTestMember ter:SocMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember ter:MemoryMember ter:SemiconductorTestMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember ter:SystemsTestGroupMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember ter:WirelessTestMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember us-gaap:CorporateAndOtherMember 2019-07-01 2019-09-29 0000097210 srt:AmericasMember 2019-07-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:SemiconductorTestMember ter:SocMember 2019-07-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:MemoryMember ter:SemiconductorTestMember 2019-07-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:SystemsTestGroupMember 2019-07-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-07-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-07-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:WirelessTestMember 2019-07-01 2019-09-29 0000097210 us-gaap:EMEAMember 2019-07-01 2019-09-29 0000097210 ter:MobileIndustrialRobotsApsMember 2019-07-01 2019-09-29 0000097210 country:US 2019-07-01 2019-09-29 0000097210 us-gaap:ForeignPlanMember 2019-07-01 2019-09-29 0000097210 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-07-01 2019-09-29 0000097210 ter:UniversalRobotsMember 2019-07-01 2019-09-29 0000097210 us-gaap:OtherNonoperatingIncomeExpenseMember 2019-07-01 2019-09-29 0000097210 ter:SemiconductorTestMember 2019-07-01 2019-09-29 0000097210 ter:IndustrialAutomationMember 2019-07-01 2019-09-29 0000097210 ter:CorporateAndOthersMember 2019-07-01 2019-09-29 0000097210 ter:MIRMember 2019-07-01 2019-09-29 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-07-01 2019-09-29 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-07-01 2019-09-29 0000097210 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-29 0000097210 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-29 0000097210 us-gaap:CommonStockMember 2019-07-01 2019-09-29 0000097210 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-29 0000097210 us-gaap:ProductMember 2019-07-01 2019-09-29 0000097210 us-gaap:ServiceMember 2019-07-01 2019-09-29 0000097210 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-29 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-29 0000097210 ter:CorporateAndEliminationsMember 2019-07-01 2019-09-29 0000097210 ter:CorporateAndEliminationsMember ter:UniversalRobotsMember us-gaap:OtherOperatingIncomeExpenseMember 2019-07-01 2019-09-29 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:OtherOperatingIncomeExpenseMember ter:CorporateAndEliminationsMember 2019-07-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SemiconductorTestMember ter:SocMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MemoryMember ter:SemiconductorTestMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SystemsTestGroupMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember us-gaap:CorporateAndOtherMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:SemiconductorTestMember ter:SocMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:MemoryMember ter:SemiconductorTestMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:SystemsTestGroupMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember ter:WirelessTestMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredOverTimeMember 2019-01-01 2019-09-29 0000097210 ter:SemiconductorTestMember ter:SocMember 2019-01-01 2019-09-29 0000097210 ter:MemoryMember ter:SemiconductorTestMember 2019-01-01 2019-09-29 0000097210 ter:SystemsTestGroupMember 2019-01-01 2019-09-29 0000097210 ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-01-01 2019-09-29 0000097210 ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-01-01 2019-09-29 0000097210 ter:WirelessTestMember 2019-01-01 2019-09-29 0000097210 us-gaap:CorporateAndOtherMember 2019-01-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:SemiconductorTestMember ter:SocMember 2019-01-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:MemoryMember ter:SemiconductorTestMember 2019-01-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:SystemsTestGroupMember 2019-01-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-01-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-01-01 2019-09-29 0000097210 srt:AsiaPacificMember ter:WirelessTestMember 2019-01-01 2019-09-29 0000097210 srt:AsiaPacificMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember ter:SemiconductorTestMember ter:SocMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember ter:MemoryMember ter:SemiconductorTestMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember ter:SystemsTestGroupMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember ter:WirelessTestMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember us-gaap:CorporateAndOtherMember 2019-01-01 2019-09-29 0000097210 srt:AmericasMember 2019-01-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:SemiconductorTestMember ter:SocMember 2019-01-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:MemoryMember ter:SemiconductorTestMember 2019-01-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:SystemsTestGroupMember 2019-01-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2019-01-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2019-01-01 2019-09-29 0000097210 us-gaap:EMEAMember ter:WirelessTestMember 2019-01-01 2019-09-29 0000097210 us-gaap:EMEAMember 2019-01-01 2019-09-29 0000097210 ter:MobileIndustrialRobotsApsMember 2019-01-01 2019-09-29 0000097210 country:US 2019-01-01 2019-09-29 0000097210 us-gaap:ForeignPlanMember 2019-01-01 2019-09-29 0000097210 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-09-29 0000097210 us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-09-29 0000097210 ter:SemiconductorTestMember 2019-01-01 2019-09-29 0000097210 ter:IndustrialAutomationMember 2019-01-01 2019-09-29 0000097210 ter:CorporateAndOthersMember 2019-01-01 2019-09-29 0000097210 ter:SemiconductorTestIndustrialAutomationAndCorporateMember 2019-01-01 2019-09-29 0000097210 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-29 0000097210 ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2019-01-01 2019-09-29 0000097210 exch:XNYS ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2019-01-01 2019-09-29 0000097210 ter:MIRMember 2019-01-01 2019-09-29 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-09-29 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-09-29 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2019-01-01 2019-09-29 0000097210 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-09-29 0000097210 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-29 0000097210 us-gaap:CommonStockMember 2019-01-01 2019-09-29 0000097210 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-29 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-29 0000097210 ter:ServiceBasedRestrictedStockUnitsMember srt:ExecutiveOfficerMember 2019-01-01 2019-09-29 0000097210 ter:ServiceBasedRestrictedStockUnitsMember ter:EmployeesMember 2019-01-01 2019-09-29 0000097210 ter:ProfitBeforeIncomeAndTaxPerformanceBasedRestrictedStockUnitsMember 2019-01-01 2019-09-29 0000097210 ter:NonEmployeesMember ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2019-01-01 2019-09-29 0000097210 us-gaap:MeasurementInputExpectedDividendPaymentMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-29 0000097210 us-gaap:ProductMember 2019-01-01 2019-09-29 0000097210 us-gaap:ServiceMember 2019-01-01 2019-09-29 0000097210 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-29 0000097210 ter:ShareRepurchaseProgramMember 2019-01-01 2019-09-29 0000097210 ter:CorporateAndEliminationsMember 2019-01-01 2019-09-29 0000097210 ter:CorporateAndEliminationsMember ter:UniversalRobotsMember us-gaap:OtherOperatingIncomeExpenseMember 2019-01-01 2019-09-29 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:OtherOperatingIncomeExpenseMember ter:CorporateAndEliminationsMember 2019-01-01 2019-09-29 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SemiconductorTestMember ter:SocMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MemoryMember ter:SemiconductorTestMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:SystemsTestGroupMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:WirelessTestMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:SemiconductorTestMember ter:SocMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:MemoryMember ter:SemiconductorTestMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:SystemsTestGroupMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:WirelessTestMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember 2020-01-01 2020-09-27 0000097210 ter:SemiconductorTestMember ter:SocMember 2020-01-01 2020-09-27 0000097210 ter:MemoryMember ter:SemiconductorTestMember 2020-01-01 2020-09-27 0000097210 ter:SystemsTestGroupMember 2020-01-01 2020-09-27 0000097210 ter:IndustrialAutomationMember ter:UniversalRobotsMember 2020-01-01 2020-09-27 0000097210 ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 ter:WirelessTestMember 2020-01-01 2020-09-27 0000097210 us-gaap:CorporateAndOtherMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember ter:SemiconductorTestMember ter:SocMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember ter:MemoryMember ter:SemiconductorTestMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember ter:SystemsTestGroupMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember ter:WirelessTestMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember ter:SemiconductorTestMember ter:SocMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember ter:MemoryMember ter:SemiconductorTestMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember ter:SystemsTestGroupMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember ter:WirelessTestMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember ter:SemiconductorTestMember ter:SocMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember ter:MemoryMember ter:SemiconductorTestMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember ter:SystemsTestGroupMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember ter:IndustrialAutomationMember ter:UniversalRobotsMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember ter:WirelessTestMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredAtPointInTimeMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 srt:AmericasMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember ter:AutoguideLlcMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember ter:MobileIndustrialRobotsApsMember ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 us-gaap:TransferredOverTimeMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-09-27 0000097210 srt:AsiaPacificMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-09-27 0000097210 us-gaap:EMEAMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-09-27 0000097210 country:US 2020-01-01 2020-09-27 0000097210 us-gaap:ForeignPlanMember 2020-01-01 2020-09-27 0000097210 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-01-01 2020-09-27 0000097210 us-gaap:RestrictedStockUnitsRSUMember ter:EmployeesMember 2020-01-01 2020-09-27 0000097210 us-gaap:RestrictedStockUnitsRSUMember srt:DirectorMember 2020-01-01 2020-09-27 0000097210 ter:AvionicsInterfaceTechnologiesLlcMember 2020-01-01 2020-09-27 0000097210 us-gaap:OtherNonoperatingIncomeExpenseMember 2020-01-01 2020-09-27 0000097210 ter:SemiconductorTestMember 2020-01-01 2020-09-27 0000097210 ter:IndustrialAutomationMember 2020-01-01 2020-09-27 0000097210 ter:CorporateAndOthersMember 2020-01-01 2020-09-27 0000097210 ter:TerCorporateAndEliminationsMember ter:UniversalRobotsMember 2020-01-01 2020-09-27 0000097210 ter:TerCorporateAndEliminationsMember ter:MobileIndustrialRobotsApsMember 2020-01-01 2020-09-27 0000097210 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-27 0000097210 ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2020-01-01 2020-09-27 0000097210 exch:XNYS ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2020-01-01 2020-09-27 0000097210 ter:MonteCarloSimulationValuationModelMember ter:AutoguideLlcMember 2020-01-01 2020-09-27 0000097210 ter:MonteCarloSimulationValuationModelMember ter:MobileIndustrialRobotsApsMember 2020-01-01 2020-09-27 0000097210 ter:MIRMember 2020-01-01 2020-09-27 0000097210 ter:DisputeInRespectOfContingentConsiderationMember ter:AutoguideLlcMember 2020-01-01 2020-09-27 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-01-01 2020-09-27 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-01-01 2020-09-27 0000097210 ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2020-01-01 2020-09-27 0000097210 ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2020-01-01 2020-09-27 0000097210 ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2020-01-01 2020-09-27 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2020-01-01 2020-09-27 0000097210 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-09-27 0000097210 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-27 0000097210 us-gaap:CommonStockMember 2020-01-01 2020-09-27 0000097210 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-09-27 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-27 0000097210 us-gaap:DevelopedTechnologyRightsMember 2020-01-01 2020-09-27 0000097210 us-gaap:CustomerRelationshipsMember 2020-01-01 2020-09-27 0000097210 us-gaap:TrademarksAndTradeNamesMember 2020-01-01 2020-09-27 0000097210 ter:ServiceBasedRestrictedStockUnitsMember ter:EmployeesMember 2020-01-01 2020-09-27 0000097210 ter:NonEmployeesMember ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2020-01-01 2020-09-27 0000097210 ter:ProfitBeforeIncomeAndTaxPerformanceBasedRestrictedStockUnitsMember 2020-01-01 2020-09-27 0000097210 ter:UnitedStatesPlansMember 2020-01-01 2020-09-27 0000097210 ter:UnitedStatesSupplementalExecutiveDefinedBenefitPensionPlanMember 2020-01-01 2020-09-27 0000097210 us-gaap:MeasurementInputExpectedDividendPaymentMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-27 0000097210 us-gaap:ForeignExchangeContractMember 2020-01-01 2020-09-27 0000097210 ter:ServiceBasedRestrictedStockUnitsMember srt:ExecutiveOfficerMember 2020-01-01 2020-09-27 0000097210 us-gaap:ProductMember 2020-01-01 2020-09-27 0000097210 us-gaap:ServiceMember 2020-01-01 2020-09-27 0000097210 us-gaap:RetainedEarningsMember 2020-01-01 2020-09-27 0000097210 ter:EmployeeStockPurchasePlanMember 2020-01-01 2020-09-27 0000097210 ter:ShareRepurchaseProgramMember 2020-01-01 2020-09-27 0000097210 us-gaap:LongTermContractWithCustomerMember srt:MinimumMember 2020-01-01 2020-09-27 0000097210 us-gaap:ShortTermContractWithCustomerMember 2020-01-01 2020-09-27 0000097210 us-gaap:LongTermContractWithCustomerMember srt:MaximumMember 2020-01-01 2020-09-27 0000097210 ter:CorporateAndEliminationsMember 2020-01-01 2020-09-27 0000097210 ter:CorporateAndEliminationsMember ter:UniversalRobotsMember us-gaap:OtherOperatingIncomeExpenseMember 2020-01-01 2020-09-27 0000097210 ter:CorporateAndEliminationsMember ter:AutoguideMember us-gaap:OtherOperatingIncomeExpenseMember 2020-01-01 2020-09-27 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:OtherOperatingIncomeExpenseMember ter:CorporateAndEliminationsMember 2020-01-01 2020-09-27 0000097210 ter:SemiconductorTestIndustrialAutomationAndCorporateMember 2020-01-01 2020-09-27 0000097210 ter:UnitedStatesPlansMember ter:AnnuityPlanForParticipantsInTheUsQualifiedPensionPlanMember 2020-01-01 2020-09-27 0000097210 ter:AutoguideLlcMember ter:IndustrialAutomationMember 2019-11-13 2019-11-13 0000097210 ter:AutoguideLlcMember ter:IndustrialAutomationMember 2019-11-13 0000097210 ter:AutoguideLlcMember 2020-06-28 0000097210 ter:MobileIndustrialRobotsApsMember 2018-04-25 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:DevelopedTechnologyRightsMember 2018-04-25 2018-04-25 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:TrademarksAndTradeNamesMember 2018-04-25 2018-04-25 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:CustomerRelationshipsMember 2018-04-25 2018-04-25 0000097210 ter:MobileIndustrialRobotsApsMember us-gaap:OrderOrProductionBacklogMember 2018-04-25 2018-04-25 0000097210 ter:MobileIndustrialRobotsApsMember 2018-04-25 2018-04-25 0000097210 ter:LemsysMember 2019-01-04 2019-01-30 0000097210 ter:LemsysMember 2019-01-31 0000097210 us-gaap:EmployeeStockOptionMember us-gaap:MeasurementInputExpectedDividendPaymentMember 2020-01-01 2020-06-28 0000097210 ter:IndustrialAutomationMember ter:AutoguideLlcMember 2019-01-01 2019-12-31 0000097210 ter:AutoguideLlcMember 2019-01-01 2019-12-31 0000097210 ter:IndustrialAutomationMember 2019-01-01 2019-12-31 0000097210 ter:SemiconductorTestMember 2019-01-01 2019-12-31 0000097210 us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-12-31 0000097210 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-12-31 0000097210 us-gaap:TrademarksAndTradeNamesMember 2019-01-01 2019-12-31 0000097210 us-gaap:ForeignExchangeContractMember 2019-01-01 2019-12-31 0000097210 ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2016-12-12 2016-12-12 0000097210 ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember ter:OptionOneMember 2016-12-12 2016-12-12 0000097210 ter:OptionTwoMember ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2016-12-12 2016-12-12 0000097210 ter:OptionTwoMember ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2016-12-12 0000097210 ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2016-12-12 0000097210 us-gaap:PensionPlansDefinedBenefitMember 2020-09-27 2020-09-27 0000097210 us-gaap:CollateralPledgedMember 2020-05-01 2020-05-01 0000097210 ter:SemiconductorTestMember 2019-09-29 0000097210 ter:IndustrialAutomationMember 2019-09-29 0000097210 ter:SystemsTestGroupMember 2019-09-29 0000097210 ter:WirelessTestMember 2019-09-29 0000097210 ter:CorporateAndOthersMember 2019-09-29 0000097210 ter:TotalShareholderReturnPerformanceBasedRestrictedStockUnitsMember 2019-09-29 0000097210 ter:OnePointTwoFivePercentConvertibleSeniorUnsecuredNotesDueDecemberFifteenTwoThousandTwentyThreeMember 2020-09-30 0000097210 us-gaap:EmployeeStockOptionMember us-gaap:MeasurementInputExpectedDividendPaymentMember 2019-06-30 2019-06-30 0000097210 us-gaap:CommonStockMember 2020-06-28 0000097210 us-gaap:AdditionalPaidInCapitalMember 2020-06-28 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-28 0000097210 us-gaap:RetainedEarningsMember 2020-06-28 0000097210 us-gaap:CommonStockMember 2020-09-27 0000097210 us-gaap:AdditionalPaidInCapitalMember 2020-09-27 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-27 0000097210 us-gaap:RetainedEarningsMember 2020-09-27 0000097210 us-gaap:CommonStockMember 2019-06-30 0000097210 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000097210 us-gaap:RetainedEarningsMember 2019-06-30 0000097210 us-gaap:CommonStockMember 2019-09-29 0000097210 us-gaap:AdditionalPaidInCapitalMember 2019-09-29 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-29 0000097210 us-gaap:RetainedEarningsMember 2019-09-29 0000097210 us-gaap:CommonStockMember 2018-12-31 0000097210 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000097210 us-gaap:RetainedEarningsMember 2018-12-31 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2018-12-31 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-12-31 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2019-09-29 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-09-29 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-09-29 0000097210 us-gaap:CommonStockMember 2019-12-31 0000097210 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000097210 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000097210 us-gaap:RetainedEarningsMember 2019-12-31 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2019-12-31 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-12-31 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-12-31 0000097210 ter:ForeignCurrencyTranslationAdjustmentsMember 2020-09-27 0000097210 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-09-27 0000097210 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-09-27 iso4217:USD utr:Year xbrli:pure xbrli:shares utr:Month iso4217:USD xbrli:shares ter:Customer ter:Segments ter:Participant
Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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 September 27, 2020
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                  to                 
Commission File
No. 001-06462
 
 
TERADYNE, INC.
(Exact name of registrant as specified in its charter)
 
 
 
Massachusetts
 
04-2272148
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
600 Riverpark DriveNorth 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:
 
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock, par value $0.125 per share
 
TER
 
Nasdaq Stock Market LLC
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
 
October 2
6
, 2020 was 166,055,827 shares.
 
 
 

Table of Contents
TERADYNE, INC.
INDEX
 
 
  
 
  
Page No.
 
     
 
  
  
     
     
Item 1.
  
  
     
     
 
  
  
 
1
 
     
 
  
  
 
2
 
     
 
  
  
 
3
 
     
 
  
  
 
4
 
     
 
  
  
 
5
 
     
 
  
  
 
6
 
     
Item 2.
  
  
 
30
 
     
Item 3.
  
  
 
42
 
     
Item 4.
  
  
 
43
 
     
 
  
  
     
     
Item 1.
  
  
 
43
 
     
Item 1A.
  
  
 
43
 
     
Item 2.
  
  
 
46
 
     
Item 4.
  
  
 
46
 
     
Item 6.
  
  
 
47
 

Table of Contents
 
PART I
 
Item 1:
Financial Statements
TERADYNE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
    
September 27,
   
December 31,
 
    
2020
   
2019
 
    
(in thousands,
except per share amount)
 
ASSETS
    
Current assets:
    
Cash and cash equivalents
   $ 945,180     $ 773,924  
Marketable securities
     287,789       137,303  
Accounts receivable, less allowance for doubtful accounts of $1,891 and $1,736 at September 27, 2020 and December 31, 2019, respectively
     587,243       362,368  
Inventories, net
     191,317       196,691  
Prepayments and other current assets
     232,103       188,598  
  
 
 
   
 
 
 
Total current assets
     2,243,632       1,658,884  
Property, plant and equipment, net
     386,170       320,216  
Operating lease
right-of-use
assets, net
     54,724       57,539  
Marketable securities
     108,254       104,490  
Deferred tax assets
     78,243       75,185  
Retirement plans assets
     14,915       18,457  
Other assets
     11,650       10,332  
Acquired intangible assets, net
     103,672       125,480  
Goodwill
     435,252       416,431  
  
 
 
   
 
 
 
Total assets
   $ 3,436,512     $ 2,787,014  
  
 
 
   
 
 
 
LIABILITIES
    
Current liabilities:
    
Accounts payable
   $ 150,427     $ 126,617  
Accrued employees’ compensation and withholdings
     175,286       163,883  
Deferred revenue and customer advances
     129,438       104,876  
Other accrued liabilities
     117,108       70,871  
Operating lease liabilities
     20,311       19,476  
Contingent consideration
           9,106  
Income taxes payable
     79,270       44,200  
  
 
 
   
 
 
 
Total current liabilities
     671,840       539,029  
Retirement plans liabilities
     134,650       134,471  
Long-term deferred revenue and customer advances
     59,099       45,974  
Long-term contingent consideration
     22,531       30,599  
Long-term other accrued liabilities
     20,141       19,535  
Deferred tax liabilities
     11,462       14,070  
Long-term operating lease
liabilities
     42,137       45,849  
Long-term incomes taxes payable
     74,930       82,642  
Debt
     406,178       394,687  
  
 
 
   
 
 
 
Total liabilities
     1,442,968       1,306,856  
  
 
 
   
 
 
 
Commitments and contingencies (See Note
R
)
   
SHAREHOLDERS’ EQUITY
    
Common stock, $0.125 par value, 1,000,000 shares authorized; 166,043 and 166,410 shares issued and outstanding at September 27, 2020 and December 31, 2019, respectively
     20,755       20,801  
Additional
paid-in
capital
     1,756,831       1,720,129  
Accumulated other comprehensive
 income (
loss
)
     8,248       (18,854
Retained earnings (accumulated deficit)
     207,710       (241,918
  
 
 
   
 
 
 
Total shareholders’ equity
     1,993,544       1,480,158  
  
 
 
   
 
 
 
Total liabilities and shareholders’ equity
   $ 3,436,512     $ 2,787,014  
  
 
 
   
 
 
 
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, 2019, 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

Ended
   
For the Nine Months

Ended
 
    
September 27,
   
September 29,
   
September 27,
   
September 29,
 
    
2020
   
2019
   
2020
   
2019
 
    
(in thousands, except per share amount)
 
Revenues:
        
Products
   $ 697,745     $ 488,170     $ 2,043,281     $ 1,339,123  
Services
     121,739       93,868       319,219       301,192  
  
 
 
   
 
 
   
 
 
   
 
 
 
Total revenues
     819,484       582,038       2,362,500       1,640,315  
Cost of revenues:
        
Cost of products
     300,174       197,196       882,902       555,863  
Cost of services
     60,382       39,804       143,647       127,861  
  
 
 
   
 
 
   
 
 
   
 
 
 
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)
     360,556       237,000       1,026,549       683,724  
  
 
 
   
 
 
   
 
 
   
 
 
 
Gross profit
     458,928       345,038       1,335,951       956,591  
Operating expenses:
        
Selling and administrative
     115,840       109,166       340,488       319,990  
Engineering and development
     94,909       77,804       274,170       236,030  
Acquired intangible assets amortization
     6,219       9,647       25,052       30,363  
Restructuring and other
     (27,701     (6,500     1,915       (11,792
  
 
 
   
 
 
   
 
 
   
 
 
 
Total operating expenses
     189,267       190,117       641,625       574,591  
  
 
 
   
 
 
   
 
 
   
 
 
 
Income from operations
     269,661       154,921       694,326       382,000  
Non-operating
(income) expense:
        
Interest income
     (1,071     (4,433     (5,189     (13,805
Interest expense
     6,237       5,463       17,831       16,846  
Other (income) expense, net
     764       2,158       3,595       2,070  
  
 
 
   
 
 
   
 
 
   
 
 
 
Income before income taxes
     263,731       151,733       678,089       376,889  
Income tax provision
     41,013       15,873       90,274       34,494  
  
 
 
   
 
 
   
 
 
   
 
 
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Net income
   $ 222,718     $ 135,860     $ 587,815     $ 342,395  
  
 
 
   
 
 
   
 
 
   
 
 
 
Net income per common share:
        
Basic
   $ 1.34     $ 0.80     $ 3.54     $ 2.00  
  
 
 
   
 
 
   
 
 
   
 
 
 
Diluted
   $ 1.21     $ 0.75     $ 3.23     $ 1.92  
  
 
 
   
 
 
   
 
 
   
 
 
 
Weighted average common shares—basic
     166,014       169,641       166,131       171,471  
  
 
 
   
 
 
   
 
 
   
 
 
 
Weighted average common shares—diluted
     184,338       180,494       181,777       178,685  
  
 
 
   
 
 
   
 
 
   
 
 
 
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, 2019, 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

Ended
   
For the Nine Months

Ended
 
    
September 27,
   
September 29,
   
September 27,
   
September 29,
 
    
2020
   
2019
   
2020
   
2019
 
    
(in thousands)
 
Net income
   $ 222,718     $ 135,860     $ 587,815     $ 342,395  
Other comprehensive income
 (loss)
, net of tax:
        
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively
     17,104       (18,002     24,131       (17,019
Available-for-sale
marketable securities:
        
Unrealized gains on debt securities arising during period, net of tax of $139, $507, $1,410, $1,762, respectively
     335       1,754       5,165       6,391  
Less: Reclassification adjustment for gains included in net income, net of tax of $
(
194
)
, $(99), $
(
615
)
, $(125), respectively
     (689     (345     (2,188     (442
  
 
 
   
 
 
   
 
 
   
 
 
 
     (354     1,409       2,977       5,949  
Defined benefit retirement plans:
        
Amortization of prior service
 credit
, net of tax of $0, $(11), $(1), $(32), respectively
     (2     (37     (6     (111
  
 
 
   
 
 
   
 
 
   
 
 
 
Other comprehensive income
 (loss)
     16,748       (16,630     27,102       (11,181
  
 
 
   
 
 
   
 
 
   
 
 
 
Comprehensive income
   $ 239,466     $ 119,230     $ 614,917     $ 331,214  
  
 
 
   
 
 
   
 
 
   
 
 
 
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, 2019, are an integral part of the condensed
consolidated financial statements.
 
3

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
 
    
Common Stock
Shares
   
Common Stock
Par Value
   
Additional Paid-in

Capital
    
Accumulated
Other
Comprehensive
(Loss) Income
   
Retained
Earnings
(Accumulated
Deficit)
   
Total
Shareholders’
Equity
 
    
(in thousands)
 
For the Three Months Ended
 
September 27, 2020
             
Balance, June 28, 2020
     165,806     $ 20,725     $ 1,730,716      $ (8,500   $ 1,610     $ 1,744,551  
Net issuance of common stock under
 
stock-based plans
     237       30       13,515            13,545  
Stock-based compensation expense
         12,600            12,600  
Cash dividends ($0.10 per share)
              (16,618     (16,618
Net income
              222,718       222,718  
Other comprehensive income
            16,748         16,748  
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
Balance, September 27, 2020
     166,043     $ 20,755     $ 1,756,831      $ 8,248     $ 207,710     $ 1,993,544  
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
For the Three Months Ended
 
September 29, 2019
             
Balance, June 30, 2019
     170,436     $ 21,305     $ 1,688,211      $ (7,591   $ (222,513   $ 1,479,412  
Net issuance of common stock under stock-based plans
     377       46       14,041            14,087  
Stock-based compensation expense
         9,933            9,933  
Repurchase of common stock
     (2,323     (290          (124,473     (124,763
Cash dividends ($0.09 per share)
              (15,264     (15,264
Net income
              135,860       135,860  
Other comprehensive 
loss
            (16,630       (16,630
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
Balance, September 29, 2019
     168,490     $ 21,061     $ 1,712,185      $ (24,221   $ (226,390   $ 1,482,635  
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
For the Nine Months Ended September 27, 2020
             
Balance, December 31, 2019
     166,410     $ 20,801     $ 1,720,129      $ (18,854   $ (241,918   $ 1,480,158  
Net issuance of common stock under stock-based plans
     1,150       144       3,019            3,163  
Stock-based compensation expense
         33,683            33,683  
Repurchase of common stock
     (1,517     (190          (88,275     (88,465
Cash dividends ($0.10 per share)
              (49,912     (49,912
Net income
              587,815       587,815  
Other comprehensive income
            27,102         27,102  
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
Balance, September 27, 2020
     166,043     $ 20,755     $ 1,756,831      $ 8,248     $ 207,710     $ 1,993,544  
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
For the Nine Months Ended September 29, 2019
             
Balance, December 31, 2018
     175,522     $ 21,940     $ 1,671,645      $ (13,040   $ (158,191   $ 1,522,354  
Net issuance of common stock under stock-based plans
     1,762       220       14,511            14,731  
Stock-based compensation expense
         26,029            26,029  
Repurchase of common stock
     (8,794     (1,099          (364,287     (365,386
Cash dividends ($0.09 per share)
              (46,307     (46,307
Net income
              342,395       342,395  
Other comprehensive 
loss
            (11,181       (11,181
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
Balance, September 29, 2019
     168,490     $ 21,061     $ 1,712,185      $ (24,221   $ (226,390   $ 1,482,635  
  
 
 
   
 
 
   
 
 
    
 
 
   
 
 
   
 
 
 
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, 2019, 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 Nine Months
Ended
 
    
September 27,
   
September 29,
 
    
2020
   
2019
 
    
(in thousands)
 
Cash flows from operating activities:
    
Net income
   $ 587,815     $ 342,395  
Adjustments to reconcile net income from operations to net cash provided by operating activities:
    
Depreciation
     58,111       51,508  
Amortization
     36,577       36,849  
Stock-based compensation
     33,028       28,822  
Provision for excess and obsolete inventory
     13,116       8,848  
Contingent consideration adjustment
     (7,967     (16,460
Deferred taxes
     (4,547     (2,977
Gains on investments
     (3,515     (4,158
Retirement plan actuarial losses
     2,589       448  
Other
     750       610  
Changes in operating assets and liabilities, net of businesses acquired:
    
Accounts receivable
     (222,015     (66,789
Inventories
     16,998       (14,143
Prepayments and other assets
     (40,751     (16,118
Accounts payable and other liabilities
     81,557       20,807  
Deferred revenue and customer advances
     36,589       27,779  
Retirement plans contributions
     (3,884     (3,775
Income taxes
     24,060       (31,224
  
 
 
   
 
 
 
Net cash provided by operating activities
     608,511       362,422  
  
 
 
   
 
 
 
Cash flows from investing activities:
    
Purchases of property, plant and equipment
     (146,872     (96,048
Purchases of marketable securities
     (488,428     (605,539
Proceeds from maturities of marketable securities
     309,407       393,472  
Proceeds from sales of marketable securities
     32,611       60,274  
Proceeds from life insurance
     546       2,912  
Acquisition of businesses, net of cash acquired
     149       (21,970
  
 
 
   
 
 
 
Net cash used for investing activities
     (292,587     (266,899
  
 
 
   
 
 
 
Cash flows from financing activities:
    
Issuance of common stock under stock purchase and stock option plans
     26,528       29,280  
Repurchase of common stock
     (88,465     (368,782
Dividend payments
     (49,870     (46,269
Payments related to net settlement of employee stock compensation awards
     (22,735     (14,550
Payments of contingent consideration
     (8,852     (27,615
  
 
 
   
 
 
 
Net cash used for financing activities
     (143,394     (427,936
  
 
 
   
 
 
 
Effects of exchange rate changes on cash and cash equivalents
     (1,274     (400
  
 
 
   
 
 
 
Inc
rease (decrease)
 in cash and cash equivalents
     171,256       (332,813
Cash and cash equivalents at beginning of period
     773,924       926,752  
  
 
 
   
 
 
 
Cash and cash equivalents at end of period
   $ 945,180     $ 593,939  
  
 
 
   
 
 
 
Supplemental cash flow disclosure
  
     
 
   
 
Non-cash investing activities:
  
     
 
   
 
Capital Expenditures incurred but not yet paid
  
$
3,119
 
 
$
2,922
 
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, 2019, 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 automation equipment for test and industrial applications. Teradyne designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in the consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s industrial automation products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing costs. Teradyne’s automatic test equipment and industrial automation products and services include:
 
   
semiconductor test (“Semiconductor Test”) systems;
 
   
defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, storage and system level test (“Storage Test”) systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”);
 
   
industrial automation (“Industrial Automation”) products; and
 
   
wireless test (“Wireless Test”) systems.
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 were reclassified to conform to the current year presentation. The December 31, 2019 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 March 2, 2020, for the year ended December 31, 2019.
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. Due to the
COVID-19
pandemic, there has been uncertainty and disruption in the global economy and our markets. Teradyne 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 November 
2
, 2020, 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 could differ significantly from these estimates under different assumptions or conditions.
Goodwill
On January 26, 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2017-04,
“Intangibles—Goodwill and Other (Topic
 350): Simplifying the Accounting for Goodwill Impairment.”
The new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Teradyne adopted this standard on January 1, 2020, on a prospective basis. The adoption of ASU
2017-04
did not have a material impact on the consolidated statement of operations, cash flows, or earnings per share. Teradyne assesses goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. Under ASU
2017-04,
goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same
one-step
impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts.
 
6

Table of Contents
Credit Losses
In June 2016, the FASB issued ASU
2016-13,
“Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This standard introduced the expected credit losses methodology for the measurement of credit losses on financial assets that are not measured at fair value through net income and replaces the “incurred loss” model with an “expected credit loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. Teradyne adopted this standard on January 1, 2020 on a modified retrospective basis. The adoption of ASU
2016-13
did not have a material impact on the consolidated statement of operations, balance sheets, cash flows, or earnings per share.
C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In August 2020, the FASB issued ASU
2020-06
– “Debt - Debt with Conversion and Other Options and Derivatives and Hedging - Contracts in Entity’s Own Equity,” which simplifies the accounting for convertible debt instruments by reducing the number of accounting models and the number of embedded conversion features that could be recognized separately from the primary contract. This ASU requires a convertible debt instrument to be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. This ASU requires an entity to use the
if-converted
method in the diluted earnings per share calculation for convertible instruments. This ASU will be effective for Teradyne in on January 1, 2022, with early adoption permitted beginning on January 1, 2021. This ASU permits the use of either the modified retrospective or fully retrospective method of transition. Teradyne is evaluating the timing and effects of the adoption of this ASU on its financial statements.
D. ACQUISITIONS
AutoGuide LLC
On November 13, 2019, Teradyne acquired 100% of the membership interests of AutoGuide, LLC (“AutoGuide”), a maker of high-payload autonomous mobile robots (“AMRs”), based in Chelmsford, MA, an emerging and fast growing segment of the global forklift market. The total purchase price was approximately $81.6 million, which included cash paid of approximately $57.6 million and $24.0 million in fair value of contingent consideration payable upon achievement of certain performance targets, extending potentially through 2022. At
Septem
ber
 2
7
, 2020, the maximum contingent consideration that could be paid is $106.9 million.
The contingent consideration is payable upon achievement of certain thresholds and targets for revenue and earnings before interest and taxes for periods from January 1, 2019 to December 31, 2020, January 1, 2019 to December 31, 2021, and January 1, 2019 to December 31, 2022.
The valuation of the contingent consideration is dependent on the following assumptions: forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. These assumptions were estimated based on a review of the historical and projected results.
The AutoGuide acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s consolidated results of operations from the date of acquisition. AutoGuide’s AMRs are used for material transport of payloads up to 4,500 kg in manufacturing, warehouse and logistics applications. These products complement Mobile Industrial Robots Aps (“MiR”) lower payload products and expand the Industrial Automation segment, which is a key component of Teradyne’s growth strategy.
The allocation of the total purchase price to AutoGuide’s net tangible assets and identifiable intangible assets was based on their estimated fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible assets and net tangible assets in the amount of $41.2 million was allocated to goodwill, which is deductible for tax purposes. AutoGuide’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition.
7

The following table represents the final allocation of the purchase price:
 
    
Purchase Price

Allocation
 
    
(in thousands)
 
Goodwill
   $ 41,223  
Intangible assets
     37,660  
Tangible assets acquired and liabilities assumed:
  
Other current assets
     3,661  
Non-current
assets
     1,227  
Accounts payable and current liabilities
     (1,223
Long-term other liabilities
     (949
  
 
 
 
Total purchase price
   $ 81,599  
  
 
 
 
 
Teradyne estimated the fair value of intangible assets using the income approach. Forecasted revenues is the key assumption for estimating the fair value. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows:
 
    
Fair Value
    
Estimated Useful

Life
 
    
(in thousands)
    
(in years)
 
Developed technology
   $ 24,590        6.0  
Customer relationships
     7,360        6.0  
Trademarks and tradenames
     5,450        7.0  
Backlog
     260        0.3  
  
 
 
    
Total intangible assets
   $ 37,660        6.1  
  
 
 
    
The following unaudited pro forma information gives effect to the acquisition of AutoGuide as if the acquisition occurred on January 1, 2018. The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented:
 
    
For the Three Months
Ended
    
For the Nine Months
Ended
 
    
September 29, 2019
    
September 29, 2019
 
    
(in thousands)
 
Revenue
   $ 585,238      $ 1,646,815  
Net income
     134,911        338,149  
Net income per common share:
     
  
 
 
    
 
 
 
Basic
   $ 0.80      $ 1.97