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Income Taxes | 9 Months Ended
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Sep. 27, 2020
Income Taxes | S. INCOME TAXES A reconciliation of the United States federal statutory corporate tax rat e to Teradyne’s effective tax rate was as follows:
|  | For the Three Months Ended |  |  | For the Nin e Months Ended |
|  | September 27 , 2020 |  |  | September 29 , 2019 |  |  | September 27 , 2020 |  |  | September 29 , 2019 |
US statutory federal tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
I n ternational provisions of the U.S. Tax C uts and Jobs Act o f 2017 |  |  | 3.6 |  |  |  | 1.2 |  |  |  | 0.7 |  |  |  | 1.0 |
Foreign taxes |  |  | (6.9 | ) |  |  | (5.1 | ) |  |  | (5.8 | ) |  |  | (4.9 | )
Tax cre dits |  |  | (1.1 | ) |  |  | (1.8 | ) |  |  | (1.4 | ) |  |  | (2.2 | )
Discrete (benefit) expense related to the internat ional provisions of the U.S. Tax C uts and Jobs Act of 2017 |  |  | (0.6 | ) |  |  | (4.0 | ) |  |  | (0.2 | ) |  |  | 2.3 |
Discrete ( benefit ) expense related to release of reserve s for uncertain tax positions |  |  | (0.5 | ) |  |  | 0.1 |  |  |  | (0.2 | ) |  |  | (6.9 | )
Discrete benefit related to equity compensation |  |  | (0.4 | ) |  |  | (0.7 | ) |  |  | (1.4 | ) |  |  | (1.5 | )
Other, net |  |  | 0.5 |  |  |  | (0.2 | ) |  |  | 0.6 |  |  |  | 0.4 |
Effective tax rate |  |  | 15.6 | % |  |  | 10.5 | % |  |  | 13.3 | % |  |  | 9.2 | %
On a quarterly basis, Teradyne evaluates the realizability of the deferred tax assets by jurisdiction and assesses the need for a valuation allowance. As of September 27, 2020, Teradyne believes that it will ultimately realize the deferred tax assets recorded on the condensed consolidated balance sheet. However, should Teradyne believe that it is more-likely-than-not that the deferred tax assets would not be realized, the tax provision would increase in the period in which Teradyne determined that the realizability was not likely. Teradyne considers the probability of future taxable income and historical profitability, among other factors, in assessing the realizability of the deferred tax assets. As of September 27, 2020 and December 31, 2019, Teradyne had $17.6 million and $21.2 million, respectively, of reserves for uncertain tax positions. The $3.6 million net decrease in reserves for uncertain tax positions is primarily related to U.S. state research and development credits generated in prior years, as well as inventory cost capitalization and equity compensation in prior years. As of September 27, 2020, Teradyne does not anticipate a material change in the balance of unrecognized tax benefits during the next twelve months. Teradyne recognizes interest and penalties related to income tax matters in income tax expense. As of September 27, 2020 and December 31, 2019, $1.4 million and $1.4 million, respectively, of interest and penalties were accrued for uncertain tax positions. For the nine months ended September 27, 2020 and September 29, 2019, expense of $0.0 million and $0.2 million, respectively, was recorded for interest and penalties related to income tax items. Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings due to the tax holiday for the nine months ended September 27, 2020 was $24.9 million, or $0.14 per diluted share. The tax savings due to the tax holiday for the nine months ended September 29, 2019 was $12.0 million, or $0.07 per diluted share. The tax holiday is scheduled to expire on December 31, 2020. Teradyne is currently in discussion with the Singapore Economic Development Board with respect to extension of the tax holiday for periods after December 31, 2020.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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