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Supplementary Information | 12 Months Ended
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Dec. 31, 2018
Supplementary Information | SUPPLEMENTARY INFORMATION (Unaudited) The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein.
|  | 2018 |
|  | 1st Quarter |  |  | 2nd Quarter |  |  | 3rd Quarter |  |  | 4th Quarter |
|  | (1) |  |  | (2)(5) |  |  | (3)(5) |  |  | (4)(5) |
|  | (in thousands, except per share amounts) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  | $ | 403,925 |  |  | $ | 434,051 |  |  | $ | 470,994 |  |  | $ | 420,652 |
Services |  |  | 83,542 |  |  |  | 92,878 |  |  |  | 95,854 |  |  |  | 98,906 |
Total revenues |  |  | 487,467 |  |  |  | 526,929 |  |  |  | 566,848 |  |  |  | 519,558 |
Cost of revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of products |  |  | 180,958 |  |  |  | 180,777 |  |  |  | 195,339 |  |  |  | 170,064 |
Cost of services |  |  | 36,677 |  |  |  | 38,818 |  |  |  | 37,816 |  |  |  | 39,959 |
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |  |  | 217,635 |  |  |  | 219,595 |  |  |  | 233,155 |  |  |  | 210,023 |
Gross profit |  |  | 269,832 |  |  |  | 307,334 |  |  |  | 333,693 |  |  |  | 309,535 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and administrative |  |  | 90,505 |  |  |  | 99,410 |  |  |  | 100,202 |  |  |  | 100,552 |
Engineering and development |  |  | 74,408 |  |  |  | 75,342 |  |  |  | 77,049 |  |  |  | 74,706 |
Acquired intangible assets amortization |  |  | 7,698 |  |  |  | 9,793 |  |  |  | 11,142 |  |  |  | 10,558 |
Restructuring and other |  |  | (313 | ) |  |  | 2,389 |  |  |  | 1,710 |  |  |  | 11,446 |
Total operating expenses |  |  | 172,298 |  |  |  | 186,934 |  |  |  | 190,103 |  |  |  | 197,262 |
Income (loss) from operations |  |  | 97,534 |  |  |  | 120,400 |  |  |  | 143,590 |  |  |  | 112,273 |
Non-operating (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | (5,981 | ) |  |  | (5,427 | ) |  |  | (6,213 | ) |  |  | (9,083 | )
Interest expense |  |  | 6,890 |  |  |  | 5,639 |  |  |  | 5,557 |  |  |  | 13,182 |
Other (income) expense, net |  |  | 805 |  |  |  | 176 |  |  |  | 3,405 |  |  |  | (2,954 | )
Income (loss) before income taxes |  |  | 95,820 |  |  |  | 120,012 |  |  |  | 140,841 |  |  |  | 111,128 |
Income tax provision (benefit) |  |  | 8,846 |  |  |  | 18,975 |  |  |  | 20,863 |  |  |  | (32,662 | )
Net income (loss) |  | $ | 86,974 |  |  | $ | 101,037 |  |  | $ | 119,978 |  |  | $ | 143,790 |
Net income (loss) per common share—basic |  | $ | 0.45 |  |  | $ | 0.53 |  |  | $ | 0.65 |  |  | $ | 0.80 |
Net income (loss) per common share—diluted |  | $ | 0.43 |  |  | $ | 0.52 |  |  | $ | 0.63 |  |  | $ | 0.79 |
Cash dividend declared per common share |  | $ | 0.09 |  |  | $ | 0.09 |  |  | $ | 0.09 |  |  | $ | 0.09 |
(1) | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges.
(2) | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation.
(3) | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability.
(4) | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability.
(5) | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy.
|  | 2017 |
|  | 1st Quarter |  |  | 2nd Quarter |  |  | 3rd Quarter |  |  | 4th Quarter |
|  | (1) |  |  | (2)(5) |  |  | (3) |  |  | (4)(5) |
|  | (in thousands, except per share amounts) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  | $ | 373,204 |  |  | $ | 610,356 |  |  | $ | 412,854 |  |  | $ | 388,282 |
Services |  |  | 83,709 |  |  |  | 86,545 |  |  |  | 90,524 |  |  |  | 91,133 |
Total revenues |  |  | 456,913 |  |  |  | 696,901 |  |  |  | 503,378 |  |  |  | 479,415 |
Cost of revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of products |  |  | 154,883 |  |  |  | 267,752 |  |  |  | 169,661 |  |  |  | 168,672 |
Cost of services |  |  | 37,014 |  |  |  | 38,511 |  |  |  | 38,848 |  |  |  | 39,813 |
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) |  |  | 191,897 |  |  |  | 306,263 |  |  |  | 208,509 |  |  |  | 208,485 |
Gross profit |  |  | 265,016 |  |  |  | 390,638 |  |  |  | 294,869 |  |  |  | 270,930 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and administrative |  |  | 84,792 |  |  |  | 90,111 |  |  |  | 86,130 |  |  |  | 87,880 |
Engineering and development |  |  | 75,978 |  |  |  | 82,270 |  |  |  | 76,986 |  |  |  | 72,070 |
Acquired intangible assets amortization |  |  | 7,952 |  |  |  | 8,166 |  |  |  | 7,028 |  |  |  | 7,384 |
Restructuring and other |  |  | 2,511 |  |  |  | 2,288 |  |  |  | (4,407 | ) |  |  | 8,970 |
Total operating expenses |  |  | 171,233 |  |  |  | 182,835 |  |  |  | 165,737 |  |  |  | 176,304 |
Income from operations |  |  | 93,783 |  |  |  | 207,803 |  |  |  | 129,132 |  |  |  | 94,626 |
Non-operating (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | (3,520 | ) |  |  | (3,292 | ) |  |  | (4,517 | ) |  |  | (6,476 | )
Interest expense |  |  | 5,402 |  |  |  | 5,509 |  |  |  | 5,372 |  |  |  | 5,380 |
Other (income) expense, net |  |  | (115 | ) |  |  | (1,291 | ) |  |  | 840 |  |  |  | (2,362 | )
Income before income taxes |  |  | 92,016 |  |  |  | 206,877 |  |  |  | 127,437 |  |  |  | 98,084 |
Income tax provision |  |  | 6,795 |  |  |  | 31,901 |  |  |  | 24,017 |  |  |  | 204,007 |
Net income (loss) |  | $ | 85,221 |  |  | $ | 174,976 |  |  | $ | 103,420 |  |  | $ | (105,923 | )
Net income (loss) per common share—basic |  | $ | 0.43 |  |  | $ | 0.88 |  |  | $ | 0.52 |  |  | $ | (0.54 | )
Net income (loss) per common share—diluted |  | $ | 0.42 |  |  | $ | 0.87 |  |  | $ | 0.52 |  |  | $ | (0.54 | )
Cash dividend declared per common share |  | $ | 0.07 |  |  | $ | 0.07 |  |  | $ | 0.07 |  |  | $ | 0.07 |
(1) | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges.
(2) | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges.
(3) | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges.
(4) | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets.
(5) | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy.

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- Definition The entire disclosure for quarterly financial data. Includes, but is not limited to, tabular presentation of financial information for fiscal quarters, effect of year-end adjustments, and an explanation of matters or transactions that affect comparability of the information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -URI http://asc.fasb.org/topic&trid=2126967 + Details
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