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Retirement Plans | 9 Months Ended
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Sep. 29, 2019
Retirement Plans | R. RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits , ” requires an employer with a defined benefit plan or other postretirement benefit plan to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plan. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation. Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of the U.S. qualified pension plan consist primarily of fixed income and equity securities. In addition, Teradyne has unfunded qualified foreign plans as well as an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (“IRC”). In the nine months ended September 29, 2019, Teradyne contributed $2.1 million to the U.S. supplemental executive defined benefit pension plan and $0.6 million to certain qualified pension plans for non-U.S. subsidiaries. For the three and nine months ended September 29, 2019 and September 30, 2018, Teradyne’s net periodic pension cost was comprised of the following:
|  | For the Three Months Ended |
|  | September 29, 2019 |  |  | September 30, 2018 |
|  | United States |  |  | Foreign |  |  | United States |  |  | Foreign |
|  | (in thousands) |
Service cost |  | $ | 402 |  |  | $ | 183 |  |  | $ | 538 |  |  | $ | 203 |
Interest cost |  |  | 1,797 |  |  |  | 168 |  |  |  | 1,750 |  |  |  | 177 |
Expected return on plan assets |  |  | (1,510 | ) |  |  | (7 | ) |  |  | (1,551 | ) |  |  | (5 | )
Amortization of prior service cost |  |  | — |  |  |  | — |  |  |  | 14 |  |  |  | — |
Settlement loss |  |  | — |  |  |  | — |  |  |  | 267 |  |  |  | — |
Total net periodic pension cost |  | $ | 689 |  |  | $ | 344 |  |  | $ | 1,018 |  |  | $ | 375 |
|  | For the Nine Months Ended |
|  | September 29, 2019 |  |  | September 30, 2018 |
|  | United States |  |  | Foreign |  |  | United States |  |  | Foreign |
|  | (in thousands) |
Service cost |  | $ | 1,206 |  |  | $ | 550 |  |  | $ | 1,657 |  |  | $ | 609 |
Interest cost |  |  | 5,392 |  |  |  | 505 |  |  |  | 7,188 |  |  |  | 532 |
Expected return on plan assets |  |  | (4,531 | ) |  |  | (21 | ) |  |  | (7,484 | ) |  |  | (15 | )
Amortization of prior service cost |  |  | — |  |  |  | — |  |  |  | 43 |  |  |  | — |
Net actuarial loss (gain) |  |  | 252 |  |  |  | — |  |  |  | (189 | ) |  |  | — |
Settlement loss |  |  | — |  |  |  | — |  |  |  | 345 |  |  |  | — |
Total net periodic pension cost |  | $ | 2,319 |  |  | $ | 1,034 |  |  | $ | 1,560 |  |  | $ | 1,126 |
Postretirement Benefit Plan In addition to receiving pension benefits, Teradyne employees in the United States who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees. For the three and nine months ended September 29, 2019 and September 30, 2018, Teradyne’s net periodic postretirement benefit cost was comprised of the following:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 29, 2019 |  |  | September 30, 2018 |  |  | September 29, 2019 |  |  | September 30, 2018 |
|  | (in thousands) |
Service cost |  | $ | 10 |  |  | $ | 10 |  |  | $ | 31 |  |  | $ | 29 |
Interest cost |  |  | 87 |  |  |  | 49 |  |  |  | 260 |  |  |  | 147 |
Amortization of prior service credit |  |  | (48 | ) |  |  | (93 | ) |  |  | (143 | ) |  |  | (280 | )
Net actuarial loss |  |  | — |  |  |  | — |  |  |  | 196 |  |  |  | 40 |
Special termination benefits |  |  | — |  |  |  | 601 |  |  |  | — |  |  |  | 3,419 |
Total net periodic postretirement benefit cost |  | $ | 49 |  |  | $ | 567 |  |  | $ | 344 |  |  | $ | 3,355 |

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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Namespace Prefix: | us-gaap_
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