XML 64 R45.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Schedule of Income (Loss) Before Income Taxes and Provision (Benefit) for Income Taxes from Operations | The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Income (loss) before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 76,699 |  |  | $ | (341,018 | ) |  | $ | 56,270 |
Non-U.S. |  |  | 447,713 |  |  |  | 285,958 |  |  |  | 196,854 |
|  | $ | 524,412 |  |  | $ | (55,060 | ) |  | $ | 253,124 |
Provision (benefit) for income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 162,679 |  |  | $ | 7,750 |  |  | $ | 16,635 |
Non-U.S. |  |  | 64,313 |  |  |  | 41,579 |  |  |  | 35,707 |
State |  |  | 2,623 |  |  |  | 1,968 |  |  |  | 1,429 |
|  |  | 229,615 |  |  |  | 51,297 |  |  |  | 53,771 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | 43,687 |  |  |  | (51,482 | ) |  |  | (574 | )
Non-U.S. |  |  | (6,476 | ) |  |  | (9,240 | ) |  |  | (7,761 | )
State |  |  | (106 | ) |  |  | (2,214 | ) |  |  | 1,211 |
|  |  | 37,105 |  |  |  | (62,936 | ) |  |  | (7,124 | )
Total provision (benefit) for income taxes: |  | $ | 266,720 |  |  | $ | (11,639 | ) |  | $ | 46,647 |
Reconciliation of Effective Tax Rate | A reconciliation of the effective tax rate for the years 2017, 2016, and 2015 is as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
U.S. statutory federal tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
U.S. transition tax |  |  | 28.7 |  |  |  | — |  |  |  | — |
Impact of rate change on deferred tax |  |  | 6.4 |  |  |  | — |  |  |  | — |
Uncertain tax positions |  |  | 1.7 |  |  |  | (2.6 | ) |  |  | 2.2 |
Foreign taxes |  |  | (16.3 | ) |  |  | 78.0 |  |  |  | (13.8 | )
Foreign tax credits |  |  | (2.2 | ) |  |  | 49.1 |  |  |  | (2.7 | )
U.S. research and development credit |  |  | (1.6 | ) |  |  | 15.8 |  |  |  | (3.0 | )
Equity compensation |  |  | (0.8 | ) |  |  | (2.7 | ) |  |  | 0.6 |
Domestic production activities deduction |  |  | (0.3 | ) |  |  | 2.3 |  |  |  | (1.0 | )
State income taxes, net of federal tax benefit |  |  | — |  |  |  | 2.3 |  |  |  | 0.4 |
Goodwill impairment |  |  | — |  |  |  | (162.1 | ) |  |  | — |
U.S. alternative minimum tax credit |  |  | — |  |  |  | 3.7 |  |  |  | — |
Inventory cost capitalization |  |  | — |  |  |  | 1.8 |  |  |  | — |
Other, net |  |  | 0.3 |  |  |  | 0.5 |  |  |  | 0.7 |
|  |  | 50.9 | % |  |  | 21.1 | % |  |  | 18.4 | %
Deferred Tax Assets (Liabilities) | Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2017 and 2016 were as follows:
|  | 2017 |  |  | 2016 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Tax credits |  | $ | 76,083 |  |  | $ | 57,313 |
Accruals |  |  | 27,508 |  |  |  | 27,247 |
Pension liabilities |  |  | 22,602 |  |  |  | 31,581 |
Inventory valuations |  |  | 17,793 |  |  |  | 31,227 |
Deferred revenue |  |  | 9,016 |  |  |  | 12,806 |
Equity compensation |  |  | 6,861 |  |  |  | 9,922 |
Net operating loss carryforwards |  |  | 5,440 |  |  |  | 5,244 |
Vacation accrual |  |  | 4,747 |  |  |  | 7,874 |
Other |  |  | 713 |  |  |  | 630 |
Gross deferred tax assets |  |  | 170,763 |  |  |  | 183,844 |
Less: valuation allowance |  |  | (63,919 | ) |  |  | (48,369 | )
Total deferred tax assets |  | $ | 106,844 |  |  | $ | 135,475 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangible assets |  | $ | (16,120 | ) |  | $ | (22,887 | )
Depreciation |  |  | (12,293 | ) |  |  | (17,117 | )
Marketable securities |  |  | (1,125 | ) |  |  | (210 | )
Total deferred tax liabilities |  | $ | (29,538 | ) |  | $ | (40,214 | )
Net deferred assets |  | $ | 77,306 |  |  | $ | 95,261 |
Operating Loss Carryforwards | At December 31, 2017, Teradyne had operating loss carryforwards that expire in the following years:
|  | U.S. Federal Operating Loss Carryforwards |  |  | State Operating Loss Carryforwards |  |  | Foreign Operating Loss Carryforwards |
|  | (in thousands) |
2018 |  | $ | — |  |  | $ | 9,943 |  |  | $ | — |
2019 |  |  | — |  |  |  | 174 |  |  |  | — |
2020 |  |  | — |  |  |  | 130 |  |  |  | — |
2021 |  |  | — |  |  |  | 2,919 |  |  |  | — |
2022 |  |  | — |  |  |  | 6,362 |  |  |  | — |
2023-2027 |  |  | — |  |  |  | 12,296 |  |  |  | — |
2028-2032 |  |  | — |  |  |  | 34,963 |  |  |  | — |
Beyond 2032 |  |  | — |  |  |  | 4,516 |  |  |  | 130 |
Non-expiring |  |  | — |  |  |  | — |  |  |  | 7,012 |
Total |  | $ | — |  |  | $ | 71,303 |  |  | $ | 7,142 |
Unrecognized Tax Benefits | Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015 were as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Beginning balance, as of January 1 |  | $ | 38,958 |  |  | $ | 36,792 |  |  | $ | 30,418 |
Additions: |  |  |  |  |  |  |  |  |  |  |  |
Tax positions for current year |  |  | 8,208 |  |  |  | 9,766 |  |  |  | 6,626 |
Tax positions for prior years |  |  | 199 |  |  |  | 187 |  |  |  | 792 |
Reductions: |  |  |  |  |  |  |  |  |  |  |  |
Tax positions for prior years |  |  | (10,573 | ) |  |  | (1,960 | ) |  |  | (708 | )
Expiration of statutes |  |  | (325 | ) |  |  | (3,532 | ) |  |  | — |
Settlements with tax authorities |  |  | (204 | ) |  |  | (2,295 | ) |  |  | (336 | )
Ending balance as of December 31 |  | $ | 36,263 |  |  | $ | 38,958 |  |  | $ | 36,792 |

X
- 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=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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=84230637&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=84230637&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=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration