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Retirement Plans
 3 Months Ended
Mar. 31, 2013
Retirement Plans

M. Retirement Plans

Defined Benefit Pension Plans

Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (“IRC”), as well as unfunded foreign plans.

Teradyne’s net periodic pension cost was comprised of the following:

 

     For the Three Months
Ended		  
     March 31,
2013		     April 1,
2012		  
     (in thousands)  

Service cost

    $ 834      $ 722   

Interest cost

      3,294        4,083   

Expected return on plan assets

      (3,630 )      (4,087 ) 

Amortization of unrecognized prior service cost

      41        58   

Settlement loss

      76        —    
  

 

 

    

 

 

  

Total net periodic pension cost

    $ 615      $ 776   
  

 

 

    

 

 

  

In the three months ended March 31, 2013, Teradyne contributed $0.4 million to the U.S. supplemental executive defined benefit pension plan and $0.3 million to certain qualified plans for non-U.S. subsidiaries.

Postretirement Benefit Plans

In addition to receiving pension benefits, U.S. Teradyne employees who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes death, and medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees.

Teradyne’s net periodic postretirement benefit was comprised of the following:

 

     For the Three Months
Ended		  
     March 31,
2013		     April,
2012		  
     (in thousands)  

Service cost

    $ 16      $ 19   

Interest cost

      87        110   

Amortization of unrecognized prior service benefit

      (150 )      (150 ) 
  

 

 

    

 

 

  

Total net periodic postretirement benefit

    $ (47 )    $ (21 )