Restructuring and Other

3 Months Ended

Mar. 31, 2013

L. Restructuring and Other

Other

During the three months ended April 1, 2012, Teradyne recorded a $1.9 million fair value adjustment to decrease the LitePoint acquisition contingent consideration.

Restructuring

In response to a downturn in the industry in 2008 and 2009, Teradyne initiated restructuring activities across its Semiconductor Test and Systems Test segments to reduce costs, principally through headcount reductions and facility consolidations. The remaining accrual for severance and benefits of $0.2 million is reflected in the accrued employees’ compensation and withholdings on the balance sheet and is expected to be paid by October 2013. The remaining accrual for lease payments on vacated facilities of $0.8 million is reflected in the other accrued liabilities and is expected to be paid by October 2013. As of March 31, 2013, Teradyne subleased approximately 20% of its unoccupied space.


	Severance and Benefits			Facility Exit Costs			Total
	(in thousands)
*Pre-2012 Activities*
Balance at December 31, 2011	$	325		$	1,862		$	2,187
Cash payments		(325	)		(778	)		(1,103	)

Balance at December 31, 2012		—			1,084			1,084
Change in estimate		—			(105	)		(105	)
Cash payments		—			(183	)		(183	)

Balance at March 31, 2013	$	—		$	796		$	796

*2012 Activities*
Q2 2012 Activity:
Provision	$	286		$	—		$	286
Change in estimate		(4	)		—			(4	)
Cash payments		(282	)		—			(282	)

Balance at December 31, 2012	$	—		$	—		$	—

Q3 2012 Activity:
Provision	$	687		$	—		$	687
Cash payments		(444	)		—			(444	)

Balance at December 31, 2012		243			—			243
Cash payments		(243	)		—			(243	)

Balance at March 31, 2013	$	—		$	—		$	—

*2013 Activities*
Q1 2013 Activity:
Provision	$	437		$	—		$	437
Cash payments		(194	)		—			(194	)

Balance at March 31, 2013	$	243		$	—		$	243

Balance at March 31, 2013	$	243		$	796		$	1,039

During the three months ended March 31, 2013, Teradyne recorded a $0.4 million of severance charges related to headcount reductions of 2 people in Systems Test and 2 people in Semiconductor Test.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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