XML 40 R29.htm IDEA: XBRL DOCUMENT v3.7.0.1

Financial Instruments (Tables)

3 Months Ended

Apr. 02, 2017

Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of April 2, 2017 and December 31, 2016.

		April 2, 2017
		Quoted Prices in Active Markets for Identical Instruments (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
		(in thousands)
Assets
Cash		$	202,925			$	—			$	—			$	202,925
Cash equivalents			115,578				6,243				—				121,821
Available-for-sale securities:
U.S. Treasury securities			—				854,547				—				854,547
Commercial paper			—				121,065				—				121,065
Corporate debt securities			—				89,731				—				89,731
Certificates of deposit and time deposits			—				50,578				—				50,578
U.S. government agency securities			—				21,149				—				21,149
Equity and debt mutual funds			19,986				—				—				19,986
Non-U.S. government securities			—				583				—				583
Total		$	338,489			$	1,143,896			$	—			$	1,482,385
Derivative assets			—				145				—				145
Total		$	338,489			$	1,144,041			$	—			$	1,482,530
Liabilities
Contingent consideration		$	—			$	—			$	37,916			$	37,916
Derivative liabilities			—				107				—				107
Total		$	—			$	107			$	37,916			$	38,023

Reported as follows:

		(Level 1)				(Level 2)				(Level 3)				Total
		(in thousands)
Assets
Cash and cash equivalents		$	318,503			$	6,243			$	—			$	324,746
Marketable securities			—				895,578				—				895,578
Long-term marketable securities			19,986				242,075				—				262,061
Prepayments			—				145				—				145
		$	338,489			$	1,144,041			$	—			$	1,482,530
Liabilities			.
Other current liabilities		$	—			$	107			$	—			$	107
Contingent consideration			—				—				21,711				21,711
Long-term contingent consideration			—				—				16,205				16,205
		$	—			$	107			$	37,916			$	38,023

		December 31, 2016
		Quoted Prices in Active Markets for Identical Instruments (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
		(in thousands)
Assets
Cash		$	214,722			$	—			$	—			$	214,722
Cash equivalents			37,458				55,704				—				93,162
Available for sale securities:
U.S. Treasury securities			—				900,038				—				900,038
Commercial paper			—				161,630				—				161,630
Corporate debt securities			—				100,153				—				100,153
Certificates of deposit and time deposits			—				82,133				—				82,133
U.S. government agency securities			—				42,014				—				42,014
Equity and debt mutual funds			18,171				—				—				18,171
Non-U.S. government securities			—				728				—				728
Total		$	270,351			$	1,342,400			$	—			$	1,612,751
Derivative assets			—				1				—				1
Total		$	270,351			$	1,342,401			$	—			$	1,612,752
Liabilities
Contingent consideration		$	—			$	—			$	38,332			$	38,332
Derivative liabilities			—				131				—				131
Total		$	—			$	131			$	38,332			$	38,463

Reported as follows:

		(Level 1)				(Level 2)				(Level 3)				Total
		(in thousands)
Assets
Cash and cash equivalents		$	252,180			$	55,704			$	—			$	307,884
Marketable securities			—				871,024				—				871,024
Long-term marketable securities			18,171				415,672				—				433,843
Prepayments			—				1				—				1
		$	270,351			$	1,342,401			$	—			$	1,612,752
Liabilities
Other accrued liabilities		$	—			$	131			$	—			$	131
Contingent consideration			—				—				1,050				1,050
Long-term contingent consideration			—				—				37,282				37,282
		$	—			$	131			$	38,332			$	38,463

Schedule of Changes in Fair Value of Level 3 Contingent Consideration

Changes in the fair value of Level 3 contingent consideration for the three months ended April 2, 2017 and April 3, 2016 were as follows:

		For the Three Months Ended
		April 2,				April 3,
		2017				2016
		(in thousands)
Balance at beginning of period		$	38,332			$	37,436
Payments (a)			(1,050	)			(15,000	)
Fair value adjustment (b)			634				1,173
Balance at end of period		$	37,916			$	23,609

(a) In the three months ended April 2, 2017, Teradyne paid $1.1 million of the AIT contingent consideration. In the three months ended April 3, 2016 based on Universal Robots’ calendar year 2015 EBITDA results, Teradyne paid $15.0 million or 100% of the eligible EBITDA contingent consideration amount.

(b) In the three months ended April 2, 2017 and April 3, 2016, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots was increased by $0.6 million and $1.2 million, respectively, primarily due to a decrease in the discount rate.

Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument

The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instruments:

Liability		April 2, 2017 Fair Value				Valuation Technique		Unobservable Inputs		Weighted Average
		(in thousands)
Contingent consideration (Universal Robots)		$	21,711			Monte Carlo Simulation		Revenues for the period July 1, 2015—December 31, 2017 volatility			12.2	%
								Discount Rate			2.8	%
		$	16,205			Monte Carlo Simulation		Revenues for the period July 1, 2015—December 31, 2018 volatility			12.2	%
								Discount Rate			2.8	%

Schedule of Carrying Amounts and Fair Values of Financial Instruments

The carrying amounts and fair values of Teradyne’s financial instruments at April 2, 2017 and December 31, 2016 were as follows:

		April 2, 2017								December 31, 2016
		Carrying Value				Fair Value				Carrying Value				Fair Value
		(in thousands)
Assets
Cash and cash equivalents		$	324,746			$	324,746			$	307,884			$	307,884
Marketable securities			1,157,639				1,157,639				1,304,867				1,304,867
Derivative assets			145				145				1				1
Liabilities
Contingent consideration			37,916				37,916				38,332				38,332
Derivative liabilities			107				107				131				131
Convertible debt (1)			355,937				534,750				352,669				486,754

(1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features.

Schedule of Available-for-Sale Marketable Securities

The following tables summarize the composition of available-for-sale marketable securities at April 2, 2017 and December 31, 2016:

		April 2, 2017
		Available-for-Sale
		Cost				Unrealized Gain				Unrealized (Loss)				Fair Market Value				Fair Market Value of Investments with Unrealized Losses
		(in thousands)
U.S. Treasury securities		$	856,714			$	37			$	(2,204	)		$	854,547			$	846,287
Commercial paper			121,073				7				(15	)			121,065				76,050
Corporate debt securities			89,164				1,151				(584	)			89,731				56,678
Certificates of deposit and time deposits			50,541				37				—				50,578				—
U.S. government agency securities			21,174				8				(33	)			21,149				10,024
Equity and debt mutual funds			17,472				2,546				(32	)			19,986				1,415
Non-U.S. government securities			578				5				—				583				—
		$	1,156,716			$	3,791			$	(2,868	)		$	1,157,639			$	990,454

Reported as follows:

		Cost				Unrealized Gain				Unrealized (Loss)				Fair Market Value				Fair Market Value of Investments with Unrealized Losses
		(in thousands)
Marketable securities		$	896,345			$	56			$	(823	)		$	895,578			$	774,974
Long-term marketable securities			260,371				3,735				(2,045	)			262,061				215,480
		$	1,156,716			$	3,791			$	(2,868	)		$	1,157,639			$	990,454

		December 31, 2016
		Available-for-Sale
		Cost				Unrealized Gain				Unrealized (Loss)				Fair Market Value				Fair Market Value of Investments with Unrealized Losses
		(in thousands)
U.S. Treasury securities		$	901,975			$	97			$	(2,034	)		$	900,038			$	572,284
Commercial paper			161,672				24				(66	)			161,630				84,034
Corporate debt securities			99,708				1,065				(620	)			100,153				53,642
Certificates of deposit and time deposits			82,080				54				(1	)			82,133				7,760
U.S. government agency securities			42,026				7				(19	)			42,014				13,461
Equity and debt mutual funds			16,505				1,724				(58	)			18,171				1,661
Non-U.S. government securities			745				6				(23	)			728				137
		$	1,304,711			$	2,977			$	(2,821	)		$	1,304,867			$	732,979

Reported as follows:

		Cost				Unrealized Gain				Unrealized (Loss)				Fair Market Value				Fair Market Value of Investments with Unrealized Losses
		(in thousands)
Marketable securities		$	871,321			$	134			$	(431	)		$	871,024			$	423,128
Long-term marketable securities			433,390				2,843				(2,390	)			433,843				309,851
		$	1,304,711			$	2,977			$	(2,821	)		$	1,304,867			$	732,979

Contractual Maturities of Investments Held

The contractual maturities of investments held at April 2, 2017 were as follows:

		April 2, 2017
		Cost				Fair Market Value
		(in thousands)
Due within one year		$	896,345			$	895,578
Due after 1 year through 5 years			190,557				190,252
Due after 5 years through 10 years			12,270				11,812
Due after 10 years			40,072				40,011
Total		$	1,139,244			$	1,137,653

Schedule of Derivative Instruments in Statement of Financial Position at Fair Value

The following table summarizes the fair value of derivative instruments at April 2, 2017 and December 31, 2016:

		Balance Sheet Location				April 2, 2017				December 31, 2016
						(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts assets			Prepayments			$	145			$	1
Foreign exchange contracts liabilities			Other current liabilities				(107	)			(131	)
Total derivatives						$	38			$	(130	)

Schedule of Effect of Derivative Instruments on Statement of Operations Recognized

The following table summarizes the effect of derivative instruments recognized in the statement of operations during the three months ended April 2, 2017 and April 3, 2016.

		Location of Losses		For the Three Months Ended
		Recognized in		April 2,				April 3,
		Statements of Operations		2017				2016
				(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange contracts		Other (income) expense, net		$	1,011			$	3,298
Total Derivatives				$	1,011			$	3,298

X

- Definition

Schedule of carrying amounts and fair values of financial instruments.

+ References

No definition available.

+ Details

Name:	ter_ScheduleOfCarryingAmountsAndFairValuesOfFinancialInstrumentsTableTextBlock
Namespace Prefix:	ter_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27290-111563

+ Details

Name:	us-gaap_AvailableForSaleSecuritiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of quantitative information about the inputs used in the fair value measurement of liabilities. This disclosure may include, but is not limited to, the fair value of the liability, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueInputsLiabilitiesQuantitativeInformationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration