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10-Q

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 April 2, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File

No. 001-06462

TERADYNE, INC.

(Exact name of registrant as specified in its charter)


Massachusetts		04-2272148
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

600 Riverpark Drive, North Reading, Massachusetts		01864
(Address of Principal Executive Offices)		(Zip Code)

978-370-2700

(Registrant’s Telephone Number, Including Area Code)

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):

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 May 1, 2023 was

155,038,743

shares.

TERADYNE, INC.

INDEX


		Page No.
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited):

	Condensed Consolidated Balance Sheets as of April 2, 2023 and December 31, 2022		1

	Condensed Consolidated Statements of Operations for the Three Months ended April 2, 2023 and April 3, 2022		2

	Condensed Consolidated Statements of Comprehensive Income for the Three Months ended April 2, 2023 and April 3, 2022		3

	Condensed Statements of Convertible Common Shares and Shareholders’ Equity for the Three Months Ended April 2, 2023 and April 3, 2022		4

	Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 2, 2023 and April 3, 2022		5

	Notes to Condensed Consolidated Financial Statements		6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		26

Item 3.	Quantitative and Qualitative Disclosures about Market Risk		32

Item 4.	Controls and Procedures		33

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings		33

Item 1A.	Risk Factors		33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		34

Item 4.	Mine Safety Disclosures		34

Item 6.	Exhibits		35

PART I

Item 1:

Financial Statements

TERADYNE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	April 2, 2023			December 31, 2022

	(in thousands, except per share amount)
ASSETS
Current assets:
Cash and cash equivalents	$	649,208		$	854,773
Marketable securities		92,895			39,612
Accounts receivable, less allowance for credit losses of $1,973 and $1,955 at April 2, 2023 and December 31, 2022, respectively		455,334			491,145
Inventories, net		352,058			325,019
Prepayments		549,114			532,962
Other current assets		13,367			14,404

Total current assets		2,111,976			2,257,915
Property, plant and equipment, net		432,381			418,683
Operating lease right-of-use assets, net		74,939			73,734
Marketable securities		116,938			110,777
Deferred tax assets		148,527			142,784
Retirement plans assets		11,650			11,761
Other assets		27,922			28,925
Acquired intangible assets, net		49,246			53,478
Goodwill		409,828			403,195

Total assets	$	3,383,407		$	3,501,252

LIABILITIES
Current liabilities:
Accounts payable	$	142,382		$	139,722
Accrued employees’ compensation and withholdings		119,433			212,266
Deferred revenue and customer advances		119,355			148,285
Other accrued liabilities		114,739			112,271
Operating lease liabilities		19,985			18,594
Income taxes payable		77,089			65,010
Current debt		35,109			50,115

Total current liabilities		628,092			746,263
Retirement plans liabilities		121,303			116,005
Long-term deferred revenue and customer advances		41,797			45,131
Long-term other accrued liabilities		16,211			15,981
Deferred tax liabilities		2,325			3,267
Long-term operating lease liabilities		65,082			64,176
Long-term incomes taxes payable		59,135			59,135

Total liabilities		933,945			1,049,958

Commitments and contingencies (Note P)
SHAREHOLDERS’ EQUITY
Common stock, $0.125 par value, 1,000,000 shares authorized; 155,445 and 155,759 shares issued and outstanding at April 2, 2023 and December 31, 2022, respectively		19,431			19,470
Additional paid-in capital		1,772,352			1,755,963
Accumulated other comprehensive loss		(36,466	)		(49,868	)
Retained earnings		694,145			725,729

Total shareholders’ equity		2,449,462			2,451,294

Total liabilities and shareholders’ equity	$	3,383,407		$	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.

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TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	For the Three Months Ended
	April 2,			April 3,
	2023			2022

	(in thousands, except per share amount)
Revenues:
Products	$	473,418		$	625,875
Services		144,111			129,495

Total revenues		617,529			755,370
Cost of revenues:
Cost of products		198,665			243,016
Cost of services		62,444			57,421

Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below)		261,109			300,437

Gross profit		356,420			454,933
Operating expenses:
Selling and administrative		150,955			140,185
Engineering and development		105,762			108,116
Acquired intangible assets amortization		4,802			5,063
Restructuring and other		2,037			15,714

Total operating expenses		263,556			269,078

Income from operations		92,864			185,855
Non-operating (income) expense:
Interest income		(5,258	)		(703	)
Interest expense		987			1,012
Other (income) expense, net		51			5,187

Income before income taxes		97,084			180,359
Income tax provision		13,553			18,431

Net income	$	83,531		$	161,928

Net income per common share:
Basic	$	0.54		$	1.00

Diluted	$	0.50		$	0.92

Weighted average common shares—basic		155,904			162,048

Weighted average common shares—diluted		166,308			175,575

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.

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TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended
	April 2,			April 3,
	2023			2022

	(in thousands)
Net income	$	83,531		$	161,928
Other comprehensive income (loss) , net of tax:
Foreign currency translation adjustment, net of tax of $0 and $0, respectively		9,309			(8,076	)
Available-for-sale marketable securities:
Unrealized gains (losses) on marketable securities arising during period, net of tax of $503 and $(1,333), respectively		2,294			(5,388	)
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $2 and $(18), respectively		5			(65	)

		2,299			(5,453	)
Cash flow hedges:
Unrealized gains arising during period, net of tax of $167, $0, respectively		596			—
Less: Reclassification adjustment for losses included in net income, net of tax of $338 and $0, respectively		1,200			—

		1,796			—
Defined benefit post-retirement plan:
Amortization of prior service credit, net of tax of $0 and $0, respectively		(2	)		(2	)

Other comprehensive income (loss)		13,402			(13,531	)

Comprehensive income	$	96,933		$	148,397

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.

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TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES

AND SHAREHOLDERS’ EQUITY

(Unaudited)


				Shareholders’ Equity
	Convertible Common Shares Value			Common Stock Shares			Common Stock Par Value			Additional Paid-in Capital			Accumulated Other Comprehensive (Loss) Income			Retained Earnings			Total Shareholders’ Equity

				(in thousands)
For the Three Months Ended April 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					579			73			(3,943	)								(3,870	)
Stock-based compensation expense											20,332									20,332
Repurchase of common stock					(893	)		(112	)								(97,936	)		(98,048	)
Cash dividends ($0.11 per share)																	(17,179	)		(17,179	)
Settlements of convertible notes					324			41			(41	)								—
Exercise of convertible notes hedge call options					(324	)		(41	)		41									—
Net income																	83,531			83,531
Other comprehensive income														13,402						13,402

Balance, April 2, 2023	$	—			155,445		$	19,431		$	1,772,352		$	(36,466	)	$	694,145		$	2,449,462

For the Three Months Ended April 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					552			70			(14,644	)								(14,574	)
Stock-based compensation expense											14,204									14,204
Repurchase of common stock					(1,750	)		(219	)								(211,247	)		(211,466	)
Cash dividends ($0.11 per share)																	(17,908	)		(17,908	)
Settlements of convertible notes					509			64			(157	)								(93	)
Exercise of convertible notes hedge call options					(509	)		(64	)		64									—
Cumulative-effect of change in accounting principle related to convertible debt		(1,512	)								(99,322	)					92,850			(6,472	)
Net income																	161,928			161,928
Other comprehensive loss														(13,531	)					(13,531	)

Balance, April 3, 2022	$	—			161,053		$	20,132		$	1,711,690		$	(19,479	)	$	762,189		$	2,474,532

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.

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TERADYNE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Three Months Ended
	April 2,			April 3,
	2023			2022

	(in thousands)
Cash flows from operating activities:
Net income	$	83,531		$	161,928
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Depreciation		22,680			22,503
Stock-based compensation		18,885			12,894
Provision for excess and obsolete inventory		5,610			1,590
Amortization		4,926			5,233
Deferred taxes		(7,634	)		11,288
(Gains) losses on investments		(2,238	)		2,001
Other		108			177
Changes in operating assets and liabilities
Accounts receivable		37,204			208
Inventories		(23,697	)		(9,480	)
Prepayments and other assets		(15,380	)		(74,305	)
Accounts payable and other accrued expenses		(83,208	)		(124,382	)
Deferred revenue and customer advances		(32,705	)		6,747
Retirement plan contributions		(1,234	)		(1,329	)
Income taxes		12,488			(7,611	)

Net cash provided by operating activities		19,336			7,462

Cash flows from investing activities:
Purchases of property, plant and equipment		(41,444	)		(43,999	)
Purchases of marketable securities		(69,276	)		(165,977	)
Proceeds from sales of marketable securities		7,929			30,581
Proceeds from maturities of marketable securities		7,468			96,682
Proceeds from life insurance		460			—

Net cash used for investing activities		(94,863	)		(82,713	)

Cash flows from financing activities:
Issuance of common stock under stock purchase and stock option plans		15,997			16,475
Repurchase of common stock		(93,308	)		(201,465	)
Payments related to net settlement of employee stock compensation awards		(19,870	)		(31,048	)
Dividend payments		(17,165	)		(17,895	)
Payments of convertible debt principal		(15,155	)		(20,694	)

Net cash used for financing activities		(129,501	)		(254,627	)

Effects of exchange rate changes on cash and cash equivalents		(537	)		2,282

Decrease in cash and cash equivalents		(205,565	)		(327,596	)
Cash and cash equivalents at beginning of period		854,773			1,122,199

Cash and cash equivalents at end of period	$	649,208		$	794,603

Non-cash investing activities:
Capital expenditures incurred but not yet paid:	$	3,823		$	2,500

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.

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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 three months ended April 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.

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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
	System on- a-Chip		Memory		System Test		Universal Robots		Mobile Industrial Robots		Wireless Test		Corporate and Eliminations			Total

	(in thousands)
For the Three Months Ended April 2, 2023 (1)
Timing of Revenue Recognition
Point in Time	$	273,275	$	61,258	$	56,857	$	70,029	$	15,959	$	35,363	$	—		$	512,741
Over Time		73,559		6,917		17,774		2,008		1,218		3,312		—			104,788

Total	$	346,834	$	68,175	$	74,631	$	72,037	$	17,177	$	38,675	$	—		$	617,529

Geographical Market
Asia Pacific	$	283,259	$	63,695	$	39,590	$	13,217	$	1,502	$	23,231	$	—		$	424,494
Americas		41,568		2,944		28,980		20,447		11,806		12,846		—			118,591
Europe, Middle East and Africa		22,007		1,536		6,061		38,373		3,869		2,598		—			74,444

Total	$	346,834	$	68,175	$	74,631	$	72,037	$	17,177	$	38,675	$	—		$	617,529

For the Three Months Ended April 3, 2022 (1)
Timing of Revenue Recognition
Point in Time	$	323,456	$	88,723	$	105,288	$	83,182	$	16,744	$	48,429	$	(346	)	$	665,476
Over Time		63,129		7,033		13,380		2,102		1,161		3,089		—			89,894

Total	$	386,585	$	95,756	$	118,668	$	85,284	$	17,905	$	51,518	$	(346	)	$	755,370

Geographical Market
Asia Pacific	$	340,741	$	93,151	$	73,784	$	18,621	$	2,592	$	34,946	$	—		$	563,835
Americas		29,714		2,046		36,608		28,148		8,564		9,687		(346	)		114,421
Europe, Middle East and Africa		16,130		559		8,276		38,515		6,749		6,885		—			77,114

Total	$	386,585	$	95,756	$	118,668	$	85,284	$	17,905	$	51,518	$	(346	)	$	755,370

(1)	Includes $1.3 million and $2.3 million in 2023 and 2022, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”

Contract Balances

During the three months ended April 2, 2023 and April 3, 2022, Teradyne recognized $50.7 million and $35.0 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 April 2, 2023, Teradyne had $1,240.7 million of unsatisfied performance obligations. Teradyne expects to recognize 88% of the remaining performance obligations in the next 12 months and 12% 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:


	April 2, 2023		December 31, 2022

	(in thousands)
Maintenance, service and training	$	70,609	$	78,089
Extended warranty		49,343		56,180
Customer advances, undelivered elements and other		41,200		59,147

Total deferred revenue and customer advances	$	161,152	$	193,416

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Accounts Receivable

During the three months ended April 2, 2023 and April 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 April 2, 2023 and April 3, 2022, total trade accounts receivable sold under the factoring agreements were $34.2 million and $19.4 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 April 2, 2023 and December 31, 2022:


	April 2, 2023		December 31, 2022

	(in thousands)
Raw material	$	264,035	$	256,065
Work-in-process		43,987		37,982
Finished goods		44,036		30,972

	$	352,058	$	325,019

Inventory reserves at April 2, 2023 and December 31, 2022 were $138.6 million and $136.8 million, respectively.

. 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 months ended April 2, 2023 and April 3, 2022, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments.

Realized gains recorded in the three months ended April 2, 2023 and April 3, 2022 were $0.3 million and $0.4 million, respectively. Realized losses recorded in the three months ended April 2, 2023 and April 3, 2022 were $0.1 million and $0.2 million, respectively. Realized gains and losses are included in other (income) expense, net.

Unrealized gains on equity securities recorded in the three months ended April 2, 2023 were $2.0 million. Unrealized losses on equity securities recorded in the three months ended April 3, 2022 were $2.2 million. 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 April 2, 2023 and December 31, 2022.

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	April 2, 2023
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

	(in thousands)
Assets
Cash	$	244,542	$	—	$	—	$	244,542
Cash equivalents		252,374		152,292		—		404,666
Available-for-sale securities:
U.S. Treasury securities		—		52,168		—		52,168
Corporate debt securities		—		51,369		—		51,369
Commercial paper		—		47,548		—		47,548
U.S. government agency securities		—		7,394		—		7,394
Debt mutual funds		6,800		—		—		6,800
Certificates of deposit and time deposits		—		1,754		—		1,754
Non-U.S. government securities		—		554		—		554
Equity securities:
Mutual funds		42,246		—		—		42,246

Total	$	545,962	$	313,079	$	—	$	859,041

Liabilities
Derivative liabilities	$	—	$	1,980	$	—	$	1,980

Total	$	—	$	1,980	$	—	$	1,980

Reported as follows:


	(Level 1)		(Level 2)		(Level 3)		Total

	(in thousands)
Assets
Cash and cash equivalents	$	496,916	$	152,292	$	—	$	649,208
Marketable securities		—		92,895		—		92,895
Long-term marketable securities		49,046		67,892		—		116,938

Total	$	545,962	$	313,079	$	—	$	859,041

Liabilities
Other current liabilities	$	—	$	1,980	$	—	$	1,980

Total	$	—	$	1,980	$	—	$	1,980

Table of Contents


	December 31, 2022
	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

	(in thousands)
Assets
Cash	$	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

Total	$	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 April 2, 2023 and December 31, 2022 were as follows:


	April 2, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value

	(in thousands)
Assets
Cash and cash equivalents	$	649,208	$	649,208	$	854,773	$	854,773
Marketable securities		209,833		209,833		150,389