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Retirement Plans | 9 Months Ended
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Sep. 28, 2014
Retirement Plans | N. Retirement Plans ASC 715, “Compensation—Retirement Benefits” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation. On October 27, 2014, the U.S. Society of Actuaries released new mortality tables. Teradyne will use the new mortality tables along with other updated pension valuation assumptions (discount rate, asset rate of return, etc.) as part of its annual fourth quarter pension obligation remeasurement. The estimated actuarial loss as a result of the new mortality tables and current discount rates is approximately $50 million. 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. In the nine months ended September 28, 2014, Teradyne contributed $1.3 million to the U.S. supplemental executive defined benefit pension plan and $1.2 million to certain qualified plans for non-U.S. subsidiaries. For the three and nine months ended September 28, 2014 and September 29, 2013, Teradyne’s net periodic pension cost was comprised of the following:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 28, 2014 |  |  | September 29, 2013 |  |  | September 28, 2014 |  |  | September 29, 2013 |
|  | (in thousands) |
Service cost |  | $ | 761 |  |  | $ | 871 |  |  | $ | 2,368 |  |  | $ | 2,557 |
Interest cost |  |  | 3,650 |  |  |  | 3,350 |  |  |  | 11,102 |  |  |  | 10,001 |
Expected return on plan assets |  |  | (3,335 | ) |  |  | (3,664 | ) |  |  | (10,060 | ) |  |  | (10,925 | )
Amortization of unrecognized prior service cost |  |  | 34 |  |  |  | 41 |  |  |  | 101 |  |  |  | 123 |
Actuarial loss (gain) |  |  | — |  |  |  | — |  |  |  | 362 |  |  |  | (1,123 | )
Total net periodic pension cost |  | $ | 1,110 |  |  | $ | 598 |  |  | $ | 3,873 |  |  | $ | 633 |
Postretirement Benefit Plan 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. For the three and nine months ended September 28, 2014 and September 29, 2013, Teradyne’s net periodic postretirement benefit was comprised of the following:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 28, 2014 |  |  | September 29, 2013 |  |  | September 28, 2014 |  |  | September 29, 2013 |
|  | (in thousands) |
Service cost |  | $ | 15 |  |  | $ | 19 |  |  | $ | 44 |  |  | $ | 56 |
Interest cost |  |  | 84 |  |  |  | 86 |  |  |  | 252 |  |  |  | 257 |
Amortization of unrecognized prior service benefit |  |  | (150 | ) |  |  | (150 | ) |  |  | (449 | ) |  |  | (449 | )
Actuarial gain |  |  | — |  |  |  | — |  |  |  | (247 | ) |  |  | (236 | )
Total net periodic post-retirement benefit |  | $ | (51 | ) |  | $ | (45 | ) |  | $ | (400 | ) |  | $ | (372 | )

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6414718&loc=d3e28014-114942 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35743120&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35742057&loc=SL14450702-114947 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6414199&loc=d3e39622-114963 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 + Details
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