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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2016

Defined Benefit Pension Plans

Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations

The December 31 balances of these defined benefit pension plans assets and obligations are shown below:

		2016								2015
		United States				Foreign				United States				Foreign
		(in thousands)
Assets and Obligations
Change in benefit obligation:
Projected benefit obligation:
Beginning of year		$	351,117			$	62,290			$	367,619			$	58,210
Service cost			2,302				761				2,462				1,006
Interest cost			13,630				1,185				13,142				1,444
Actuarial gain (loss)			6,053				5,621				(13,221	)			7,498
Benefits paid			(19,486	)			(1,385	)			(18,885	)			(859	)
Curtailment			—				—				—				(634	)
Plan participants’ contributions			—				—				—				64
Expenses paid			—				(609	)			—				—
Non-U.S. currency movement			—				(7,125	)			—				(4,439	)
End of year			353,616				60,738				351,117				62,290
Change in plan assets:
Fair value of plan assets:
Beginning of year			298,404				28,141				316,072				29,511
Company contributions			4,489				867				10,517				808
Plan participants’ contributions			—				—				—				64
Actual return on plan assets			23,897				5,142				(9,300	)			(136	)
Benefits paid			(19,486	)			(1,148	)			(18,885	)			(859	)
Settlements			—				—				—				—
Expenses paid			—				(609	)			—				(43	)
Non-U.S. currency movement			—				(4,822	)			—				(1,204	)
End of year			307,304				27,571				298,404				28,141
Funded status		$	(46,312	)		$	(33,167	)		$	(52,713	)		$	(34,149	)

Amounts Recorded within Statement of Financial Position

The following table provides amounts recorded within the account line items of the statements of financial position as of December 31:

		2016								2015
		United States				Foreign				United States				Foreign
		(in thousands)
Retirement plans assets		$	7,712			$	—			$	636			$	—
Accrued employees’ compensation and withholdings			(2,591	)			(772	)			(2,564	)			(695	)
Retirement plans liabilities			(51,433	)			(32,395	)			(50,785	)			(33,454	)
Funded status		$	(46,312	)		$	(33,167	)		$	(52,713	)		$	(34,149	)

Amounts Recognized in Accumulated Other Comprehensive Income

The following table provides amounts recognized in accumulated other comprehensive income as of December 31:

		2016								2015
		United States				Foreign				United States				Foreign
		(in thousands)
Prior service cost, before tax		$	127			$	—			$	224			$	—
Deferred taxes			514				—				479				—
Total recognized in other comprehensive income, net of tax		$	641			$	—			$	703			$	—

Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets

Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31:

		2016								2015
		United States				Foreign				United States				Foreign
		(in millions)
Projected benefit obligation		$	54.0			$	34.3			$	53.3			$	35.2
Accumulated benefit obligation			48.0				30.1				47.3				29.5
Fair value of plan assets			—				1.1				—				1.0

Net Periodic Pension and Postretirement Benefit Costs

For the years ended December 31, 2016, 2015 and 2014, Teradyne’s net periodic pension (income) cost was comprised of the following:

		2016								2015								2014
		United States				Foreign				United States				Foreign				United States				Foreign
		(in thousands)
Components of Net Periodic Pension (Income) Cost:
Service cost		$	2,302			$	761			$	2,462			$	1,006			$	2,218			$	897
Interest cost			13,630				1,185				13,142				1,444				12,875				1,837
Expected return on plan assets			(13,830	)			(443	)			(14,517	)			(781	)			(12,500	)			(868	)
Amortization of prior service cost			96				—				134				—				135				—
Net actuarial (gain) loss			(4,013	)			815				10,596				8,415				43,168				4,651
Curtailment			—				—				—				(634	)			—				—
Total net periodic pension (income) cost		$	(1,815	)		$	2,318			$	11,817			$	9,450			$	45,896			$	6,517
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:
Reversal of amortization items:
Prior service cost			(96	)			—				(134	)			—				(135	)			—
Total recognized in other comprehensive income			(96	)			—				(134	)			—				(135	)			—
Total recognized in net periodic pension (income) cost and other comprehensive income		$	(1,911	)		$	2,318			$	11,683			$	9,450			$	45,761			$	6,517

Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation

Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1:

		2016								2015								2014
		United States				Foreign				United States				Foreign				United States				Foreign
Discount rate			4.0	%			2.3	%			3.7	%			2.6	%			4.5	%			3.8	%
Expected return on plan assets			4.8				2.0				4.8				2.6				5.0				3.4
Salary progression rate			2.7				3.2				2.9				3.2				3.0				3.5

Weighted Average Assumptions to Determine Pension Obligations at December 31 :

		2016								2015
		United States				Foreign				United States				Foreign
Discount rate			3.9	%			1.8	%			4.0	%			2.3	%
Salary progression rate			2.6				2.7				2.7				3.2

Weighted Average Pension Asset Allocations by Category

The following table provides weighted average pension asset allocation by asset category at December 31, 2016 and 2015:

		2016								2015
		United States				Foreign				United States				Foreign
Fixed income securities			88.1	%			—	%			88.6	%			—	%
Equity securities			9.9				—				9.8				—
Other			2.0				100.0				1.6				100.0
			100.0	%			100.0	%			100.0	%			100.0	%

Target Asset Allocation and Index for Each Asset Category

The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows:

Asset Category:		Policy Index:		Target Allocation
U.S. corporate fixed income		Barclays U.S. Corporate A or Better Index			76	%
Global equity		MSCI World Minimum Volatility Index			10
U.S. government fixed income		Barclays U.S. Long Government Bond Index			8
High yield fixed income		Barclays U.S. Corporate High Yield 2% Issuer Cap Index			5
Cash		Citigroup Three Month U.S. Treasury Bill Index			1

Changes in Fair Value of Pension Assets

The fair value of pension plan assets by asset category and by level at December 31, 2016 and December 31, 2015 were as follows:

		December 31, 2016
		United States																Foreign
		Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
		(in thousands)
Fixed income securities:
Corporate debt securities		$	—			$	246,528			$	—			$	246,528			$	—			$	—			$	—			$	—
U.S. government securities			—				24,322				—				24,322				—				—				—				—
Global equity			—				30,360				—				30,360				—				—				—				—
Group annuity insurance contracts			—				—				3,071				3,071				—				—				26,385				26,385
Other			—				—				—				—				—				1,124				—				1,124
Cash and cash equivalents			3,023				—				—				3,023				62				—				—				62
Total		$	3,023			$	301,210			$	3,071			$	307,304			$	62			$	1,124			$	26,385			$	27,571
		December 31, 2015
		United States																Foreign
		Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
		(in thousands)
Fixed income securities:
Corporate debt securities		$	—			$	240,695			$	—			$	240,695			$	—			$	—			$	—			$	—
U.S. government securities			—				23,761				—				23,761				—				—				—				—
Global equity			—				29,193				—				29,193				—				—				—				—
Group annuity insurance contracts			—				—				2,982				2,982				—				—				26,410				26,410
Other			—				—				—				—				—				1,029				—				1,029
Cash and cash equivalents			1,773				—				—				1,773				702				—				—				702
Total		$	1,773			$	293,649			$	2,982			$	298,404			$	702			$	1,029			$	26,410			$	28,141

Expected Future Benefit Payments

Future benefit payments are expected to be paid as follows:

		United States				Foreign
		(in thousands)
2017		$	19,205			$	788
2018			18,568				754
2019			19,046				780
2020			19,768				1,054
2021			20,390				882
2022-2026			111,334				5,209

Postretirement Benefit Plans

Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations

The December 31 balances of the postretirement assets and obligations are shown below:

		2016				2015
		(in thousands)
Assets and Obligations
Change in benefit obligation:
Projected benefit obligation:
Beginning of year		$	6,030			$	7,162
Service cost			37				48
Interest cost			218				237
Plan amendments			(93	)			—
Actuarial loss (gain)			5				(648	)
Benefits paid			(687	)			(769	)
End of year			5,510				6,030
Change in plan assets:
Fair value of plan assets:
Beginning of year			—				—
Company contributions			687				769
Benefits paid			(687	)			(769	)
End of year			—				—
Funded status		$	(5,510	)		$	(6,030	)

Amounts Recorded within Statement of Financial Position

The following table provides amounts recorded within the account line items of financial position as of December 31:

		2016				2015
		(in thousands)
Accrued employees’ compensation and withholdings		$	(571	)		$	(692	)
Retirement plans liability			(4,939	)			(5,338	)
Funded status		$	(5,510	)		$	(6,030	)

Amounts Recognized in Accumulated Other Comprehensive Income

The following table provides amounts recognized in accumulated other comprehensive income as of December 31:

		2016				2015
		(in thousands)
Prior service credit, before tax		$	(1,118	)		$	(1,632	)
Deferred taxes			(1,292	)			(1,100	)
Total recognized in other comprehensive income, net of tax		$	(2,410	)		$	(2,732	)

Net Periodic Pension and Postretirement Benefit Costs

For the years ended December 31, 2016, 2015 and 2014, Teradyne’s net periodic postretirement benefit income was comprised of the following:

		2016				2015				2014
		(in thousands)
Components of Net Periodic Postretirement Benefit Income:
Service cost		$	37			$	48			$	59
Interest cost			218				237				335
Amortization of prior service credit			(607	)			(598	)			(598	)
Net actuarial loss (gain)			5				(648	)			(1,255	)
Total net periodic postretirement benefit income			(347	)			(961	)			(1,459	)
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:
Prior service benefit			(93	)			—				—
Reversal of amortization items:
Prior service credit			607				598				598
Total recognized in other comprehensive income			514				598				598
Total recognized in net periodic postretirement cost (income) and other comprehensive income		$	167			$	(363	)		$	(861	)

Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation

Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1:

		2016				2015				2014
Discount rate			3.9	%			3.5	%			4.1	%
Initial health care cost trend rate			7.5				7.5				8.0
Ultimate health care cost trend rate			5.0				5.0				5.0
Year in which ultimate health care cost trend rate is reached			2023				2022				2020

Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31:

		2016				2015				2014
Discount rate			3.9	%			3.9	%			3.5	%
Initial medical trend			7.3				7.5				7.5
Ultimate health care trend			5.0				5.0				5.0
Medical cost trend rate decrease to ultimate rate in year			2023				2023				2022

Expected Future Benefit Payments

Future benefit payments are expected to be paid as follows:

		Benefit Payments
		(in thousands)
2017		$	571
2018			529
2019			456
2020			409
2021			367
2022-2026			1,536

One Percentage Point Change in Assumed Health Care Cost Trend Rates for Year

A one percentage point change in the assumed health care cost trend rates for the year ended December 31, 2016 would have the following effects:

		1 Percentage Point Increase				1 Percentage Point Decrease
		(in thousands)
Effect on total service and interest cost components		$	2			$	(2	)
Effect on postretirement benefit obligations			44				(42	)

Group Annuity Insurance Contracts

Changes in Fair Value of Pension Assets

Changes in the fair value of Level 3 group annuity insurance contracts for the years ended December 31, 2016 and 2015 were as follows:

		Group Annuity Insurance Contracts
		(in thousands)
Balance at December 31, 2014		$	2,990
Purchases of group annuity insurance contracts			27,313
Interest and market value adjustments			(825	)
Benefits paid			(67	)
Other			(19	)
Balance at December 31, 2015			29,392
Purchases of group annuity insurance contracts			709
Interest and market value adjustments			5,308
Benefits paid			(611	)
Other			(634	)
Non-U.S. currency movement			(4,708	)
Balance at December 31, 2016		$	29,456

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