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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2016
Schedule of (Loss) Income Before Income Taxes and (Benefit) Provision for Income Taxes from Operations | The components of (loss) income before income taxes and the (benefit) provision for income taxes as shown in the consolidated statements of operations were as follows:
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | (in thousands) |
(Loss) income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | (341,018 | ) |  | $ | 56,270 |  |  | $ | (151,889 | )
Non-U.S. |  |  | 285,958 |  |  |  | 196,854 |  |  |  | 247,265 |
|  | $ | (55,060 | ) |  | $ | 253,124 |  |  | $ | 95,376 |
(Benefit) provision for income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 7,750 |  |  | $ | 16,635 |  |  | $ | 5,197 |
Non-U.S. |  |  | 41,579 |  |  |  | 35,707 |  |  |  | 28,157 |
State |  |  | 1,968 |  |  |  | 1,429 |  |  |  | 678 |
|  |  | 51,297 |  |  |  | 53,771 |  |  |  | 34,032 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | (51,482 | ) |  |  | (574 | ) |  |  | (20,449 | )
Non-U.S. |  |  | (9,240 | ) |  |  | (7,761 | ) |  |  | (404 | )
State |  |  | (2,214 | ) |  |  | 1,211 |  |  |  | 925 |
|  |  | (62,936 | ) |  |  | (7,124 | ) |  |  | (19,928 | )
Total (benefit) provision for income taxes: |  | $ | (11,639 | ) |  | $ | 46,647 |  |  | $ | 14,104 |
Reconciliation of Effective Tax Rate | A reconciliation of the effective tax rate for the years 2016, 2015 and 2014 follows:
|  | 2016 |  |  | 2015 |  |  | 2014 |
U.S. statutory federal tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Foreign taxes |  |  | 127.1 |  |  |  | (16.5 | ) |  |  | (58.1 | )
U.S. research and development credit |  |  | 15.8 |  |  |  | (3.0 | ) |  |  | (7.9 | )
Domestic production activities deduction |  |  | 2.3 |  |  |  | (1.0 | ) |  |  | (0.5 | )
State income taxes, net of federal tax benefit |  |  | 2.3 |  |  |  | 0.4 |  |  |  | (0.1 | )
Equity compensation |  |  | (2.7 | ) |  |  | 0.6 |  |  |  | (1.8 | )
Uncertain tax positions |  |  | (2.6 | ) |  |  | 2.2 |  |  |  | 7.9 |
Goodwill impairment |  |  | (162.1 | ) |  |  | — |  |  |  | 36.3 |
Other, net |  |  | 6.0 |  |  |  | 0.7 |  |  |  | 4.0 |
|  |  | 21.1 | % |  |  | 18.4 | % |  |  | 14.8 | %
Deferred Tax Assets (Liabilities) | Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2016 and 2015 were as follows:
|  | 2016 |  |  | 2015 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Tax credits |  | $ | 57,313 |  |  | $ | 44,684 |
Pension liabilities |  |  | 31,581 |  |  |  | 31,742 |
Inventory valuations |  |  | 31,227 |  |  |  | 29,445 |
Accruals |  |  | 27,247 |  |  |  | 26,563 |
Deferred revenue |  |  | 12,806 |  |  |  | 10,232 |
Equity compensation |  |  | 9,922 |  |  |  | 9,674 |
Vacation accrual |  |  | 7,874 |  |  |  | 7,354 |
Net operating loss carryforwards |  |  | 5,244 |  |  |  | 7,989 |
Other |  |  | 630 |  |  |  | 502 |
Gross deferred tax assets |  |  | 183,844 |  |  |  | 168,185 |
Less: valuation allowance |  |  | (48,369 | ) |  |  | (43,039 | )
Total deferred tax assets |  | $ | 135,475 |  |  | $ | 125,146 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangible assets |  | $ | (22,887 | ) |  | $ | (68,433 | )
Depreciation |  |  | (17,117 | ) |  |  | (20,541 | )
Marketable securities |  |  | (210 | ) |  |  | (458 | )
Total deferred tax liabilities |  | $ | (40,214 | ) |  | $ | (89,432 | )
Net deferred assets |  | $ | 95,261 |  |  | $ | 35,714 |
Operating Loss Carryforwards | At December 31, 2016, Teradyne had operating loss carryforwards that expire in the following years:
|  | State Operating Loss Carryforwards |  |  | Foreign Operating Loss Carryforwards |
|  | (in thousands) |
2017 |  | $ | 10,245 |  |  | $ | — |
2018 |  |  | 8,562 |  |  |  | — |
2019 |  |  | 983 |  |  |  | — |
2020 |  |  | 1,248 |  |  |  | — |
2021 |  |  | 3,549 |  |  |  | — |
2022-2026 |  |  | 18,044 |  |  |  | — |
2027-2031 |  |  | 38,498 |  |  |  | — |
Beyond 2031 |  |  | 5,464 |  |  |  | 129 |
Non-expiring |  |  | — |  |  |  | 6,400 |
Total |  | $ | 86,593 |  |  | $ | 6,529 |
Unrecognized Tax Benefits | Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 were as follows:
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | (in thousands) |
Beginning balance as of January 1 |  | $ | 36,792 |  |  | $ | 30,418 |  |  | $ | 21,203 |
Additions: |  |  |  |  |  |  |  |  |  |  |  |
Tax positions for current year |  |  | 9,766 |  |  |  | 6,626 |  |  |  | 8,414 |
Tax positions for prior years |  |  | 187 |  |  |  | 792 |  |  |  | 3,781 |
Reductions: |  |  |  |  |  |  |  |  |  |  |  |
Expiration of statutes |  |  | (3,532 | ) |  |  | — |  |  |  | — |
Settlements with tax authorities |  |  | (2,295 | ) |  |  | (336 | ) |  |  | (500 | )
Tax positions for prior years |  |  | (1,960 | ) |  |  | (708 | ) |  |  | (2,480 | )
Ending balance as of December 31 |  | $ | 38,958 |  |  | $ | 36,792 |  |  | $ | 30,418 |

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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32840-109319 + Details
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