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Financial Instruments (Tables) | 3 Months Ended
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Apr. 04, 2021
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 4, 2021 and December 31, 2020.​​​​​​​
|  | April 4, 2021 |
|  | 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 |  | $ | 417,888 |  |  |  |  |  |  | $ | — |  |  | $ | 417,888 |
Cash equivalents |  |  | 386,694 |  |  |  | 26,567 |  |  |  | — |  |  |  | 413,261 |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper |  |  | — |  |  |  | 306,715 |  |  |  | — |  |  |  | 306,715 |
U.S. Treasury securities |  |  | — |  |  |  | 155,190 |  |  |  | — |  |  |  | 155,190 |
Corporate debt securities |  |  | — |  |  |  | 83,372 |  |  |  | — |  |  |  | 83,372 |
Debt mutual funds |  |  | 9,288 |  |  |  | — |  |  |  | — |  |  |  | 9,288 |
U.S. government agency securities |  |  | — |  |  |  | 4,612 |  |  |  | — |  |  |  | 4,612 |
Certificates of deposit and time deposits |  |  | — |  |  |  | 966 |  |  |  | — |  |  |  | 966 |
Non-U.S. government securities |  |  | — |  |  |  | 619 |  |  |  | — |  |  |  | 619 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual funds |  |  | 33,151 |  |  |  | — |  |  |  | — |  |  |  | 33,151 |
|  | $ | 847,021 |  |  | $ | 578,041 |  |  | $ | — |  |  | $ | 1,425,062 |
Derivative assets |  |  | — |  |  |  | 16 |  |  |  | — |  |  |  | 16 |
Total |  | $ | 847,021 |  |  | $ | 578,057 |  |  | $ | — |  |  | $ | 1,425,078 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities |  | $ | — |  |  | $ | 393 |  |  | $ | — |  |  | $ | 393 |
Total |  | $ | — |  |  | $ | 393 |  |  | $ | — |  |  | $ | 393 |
Reported as follows:
|  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Total |
|  | (in thousands) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 804,582 |  |  | $ | 26,567 |  |  | $ | — |  |  | $ | 831,149 |
Marketable securities |  |  | — |  |  |  | 478,293 |  |  |  | — |  |  |  | 478,293 |
Long-term marketable securities |  |  | 42,439 |  |  |  | 73,181 |  |  |  | — |  |  |  | 115,620 |
Prepayments and other current assets |  |  | — |  |  |  | 16 |  |  |  | — |  |  |  | 16 |
Total |  | $ | 847,021 |  |  | $ | 578,057 |  |  | $ | — |  |  | $ | 1,425,078 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other current liabilities |  | $ | — |  |  | $ | 393 |  |  | $ | — |  |  | $ | 393 |
Total |  | $ | — |  |  | $ | 393 |  |  | $ | — |  |  | $ | 393 |
|  | December 31, 2020 |
|  | 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 |  | $ | 443,166 |  |  | $ | — |  |  | $ | — |  |  |  | 443,166 |
Cash equivalents |  |  | 347,768 |  |  |  | 123,187 |  |  |  | — |  |  |  | 470,955 |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
U.S. Treasury securities |  |  | — |  |  |  | 258,304 |  |  |  | — |  |  |  | 258,304 |
Commercial paper |  |  | — |  |  |  | 254,413 |  |  |  | — |  |  |  | 254,413 |
Corporate debt securities |  |  | — |  |  |  | 83,615 |  |  |  | — |  |  |  | 83,615 |
Debt mutual funds |  |  | 8,565 |  |  |  | — |  |  |  | — |  |  |  | 8,565 |
U.S. government agency securities |  |  | — |  |  |  | 4,339 |  |  |  | — |  |  |  | 4,339 |
Certificates of deposit and time deposits |  |  | — |  |  |  | 979 |  |  |  | — |  |  |  | 979 |
Non-U.S. government securities |  |  | — |  |  |  | 625 |  |  |  | — |  |  |  | 625 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity mutual funds |  |  | 29,420 |  |  |  | — |  |  |  | — |  |  |  | 29,420 |
|  | $ | 828,919 |  |  | $ | 725,462 |  |  | $ | — |  |  | $ | 1,554,381 |
Derivative assets |  |  | — |  |  |  | 95 |  |  |  | — |  |  |  | 95 |
Total |  | $ | 828,919 |  |  | $ | 725,557 |  |  | $ | — |  |  | $ | 1,554,476 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  |  | $ | — |  |  | $ | 7,227 |  |  | $ | 7,227 |
Derivative liabilities |  |  | — |  |  |  | 504 |  |  |  | — |  |  |  | 504 |
Total |  | $ | — |  |  | $ | 504 |  |  | $ | 7,227 |  |  | $ | 7,731 |
Reported as follows:
|  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Total |
|  | (in thousands) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 790,934 |  |  | $ | 123,187 |  |  | $ | — |  |  | $ | 914,121 |
Marketable securities |  |  | — |  |  |  | 522,280 |  |  |  | — |  |  |  | 522,280 |
Long-term marketable securities |  |  | 37,985 |  |  |  | 79,995 |  |  |  | — |  |  |  | 117,980 |
Prepayments and other current assets |  |  | — |  |  |  | 95 |  |  |  | — |  |  |  | 95 |
Total |  | $ | 828,919 |  |  | $ | 725,557 |  |  | $ | — |  |  | $ | 1,554,476 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other accrued liabilities |  | $ | — |  |  | $ | 504 |  |  | $ | — |  |  | $ | 504 |
Long-term contingent consideration |  |  | — |  |  |  | — |  |  |  | 7,227 |  |  |  | 7,227 |
Total |  | $ | — |  |  | $ | 504 |  |  | $ | 7,227 |  |  | $ | 7,731 |
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 4, 2021, and March 29, 2020 were as follows:
|  | For the Three Months Ended |
|  | April 4, |  |  | March 29, |
|  | 2021 |  |  | 2020 |
|  | (in thousands) |
Balance at beginning of period |  | $ | 7,227 |  |  | $ | 39,705 |
Fair value adjustment (a)(b) |  |  | (7,227 | ) |  |  | (10,020 | )
Foreign currency impact |  |  | — |  |  |  | (361 | )
Payments (c) |  |  | — |  |  |  | (8,852 | )
Balance at end of period |  | $ | — |  |  | $ | 20,472 |
(a) | In the three months ended April 4, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. As of April 4, 2021, the maximum amount of contingent consideration that could be paid in connection with the acquisition of AutoGuide is $100.2 million. The remaining earn-out periods end on December 31, 2021 and December 31, 2022. The sellers of AutoGuide have filed an arbitration claim against Teradyne related to the earn-out alleging non-compliance with the earn-out provisions of the AutoGuide acquisition agreement. Teradyne disputes the allegations of non-compliance. The ultimate amount of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide may be affected by the outcome of the dispute.
(b) | In the three months ended March 29, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisitions of Mobile Industrial Robots Aps (“MiR”) and AutoGuide decreased by $2.9 million and $7.1 million, respectively, due to lower forecasts.
(c) | In the three months ended March 29, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out in connection with the acquisition of MiR.
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at April 4, 2021 and December 31, 2020 were as follows:
|  | April 4, 2021 |  |  | December 31, 2020 |
|  | Carrying Value |  |  | Fair Value |  |  | Carrying Value |  |  | Fair Value |
|  | (in thousands) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 831,149 |  |  | $ | 831,149 |  |  | $ | 914,121 |  |  | $ | 914,121 |
Marketable securities |  |  | 593,913 |  |  |  | 593,913 |  |  |  | 640,260 |  |  |  | 640,260 |
Derivative assets |  |  | 16 |  |  |  | 16 |  |  |  | 95 |  |  |  | 95 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration |  |  | — |  |  |  | — |  |  |  | 7,227 |  |  |  | 7,227 |
Derivative liabilities |  |  | 393 |  |  |  | 393 |  |  |  | 504 |  |  |  | 504 |
Convertible debt (1) |  |  | 367,934 |  |  |  | 1,664,667 |  |  |  | 410,111 |  |  |  | 1,739,553 |
(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 table summarizes the composition of available-for-sale marketable securities at April 4, 2021:
|  | Cost |  |  | Unrealized Gain |  |  | Unrealized (Loss) |  |  | Fair Market Value |  |  | Fair Market Value of Investments with Unrealized Losses |
|  | (in thousands) |
Commercial paper |  | $ | 306,707 |  |  | $ | 8 |  |  | $ | — |  |  | $ | 306,715 |  |  | $ | 13,996 |
U.S. Treasury securities |  |  | 155,337 |  |  |  | 644 |  |  |  | (791 | ) |  |  | 155,190 |  |  |  | 24,492 |
Corporate debt securities |  |  | 79,190 |  |  |  | 4,340 |  |  |  | (158 | ) |  |  | 83,372 |  |  |  | 25,553 |
Debt mutual funds |  |  | 9,242 |  |  |  | 46 |  |  |  | — |  |  |  | 9,288 |  |  |  | — |
U.S. government agency securities |  |  | 4,581 |  |  |  | 34 |  |  |  | (3 | ) |  |  | 4,612 |  |  |  | 1,413 |
Certificates of deposit and time deposits |  |  | 966 |  |  |  | — |  |  |  | — |  |  |  | 966 |  |  |  | — |
Non-U.S. government securities |  |  | 619 |  |  |  | — |  |  |  | — |  |  |  | 619 |  |  |  | — |
|  | $ | 556,642 |  |  | $ | 5,072 |  |  | $ | (952 | ) |  | $ | 560,762 |  |  | $ | 65,454 |
Reported as follows:
|  | Cost |  |  | Unrealized Gain |  |  | Unrealized (Loss) |  |  | Fair Market Value |  |  | Fair Market Value of Investments with Unrealized Losses |
|  | (in thousands) |
Marketable securities |  | $ | 478,221 |  |  | $ | 95 |  |  | $ | (23 | ) |  | $ | 478,293 |  |  | $ | 47,468 |
Long-term marketable securities |  |  | 78,421 |  |  |  | 4,977 |  |  |  | (929 | ) |  |  | 82,469 |  |  |  | 17,986 |
|  | $ | 556,642 |  |  | $ | 5,072 |  |  | $ | (952 | ) |  | $ | 560,762 |  |  | $ | 65,454 |
The following table summarizes the composition of available-for-sale marketable securities at December 31, 2020:
|  | Cost |  |  | Unrealized Gain |  |  | Unrealized (Loss) |  |  | Fair Market Value |  |  | Fair Market Value of Investments with Unrealized Losses |
|  | (in thousands) |
U.S. Treasury securities |  | $ | 257,132 |  |  | $ | 1,330 |  |  | $ | (158 | ) |  | $ | 258,304 |  |  | $ | 17,243 |
Commercial paper |  |  | 254,404 |  |  |  | 10 |  |  |  | (1 | ) |  |  | 254,413 |  |  |  | 12,173 |
Corporate debt securities |  |  | 76,129 |  |  |  | 7,539 |  |  |  | (53 | ) |  |  | 83,615 |  |  |  | 39,896 |
Debt mutual funds |  |  | 8,413 |  |  |  | 152 |  |  |  | — |  |  |  | 8,565 |  |  |  | — |
U.S. government agency securities |  |  | 4,294 |  |  |  | 46 |  |  |  | (1 | ) |  |  | 4,339 |  |  |  | 1,106 |
Certificates of deposit and time deposits |  |  | 979 |  |  |  | — |  |  |  | — |  |  |  | 979 |  |  |  | — |
Non-U.S. government securities |  |  | 625 |  |  |  | — |  |  |  | — |  |  |  | 625 |  |  |  | — |
|  | $ | 601,976 |  |  | $ | 9,077 |  |  | $ | (213 | ) |  | $ | 610,840 |  |  | $ | 70,418 |
Reported as follows:
|  | Cost |  |  | Unrealized Gain |  |  | Unrealized (Loss) |  |  | Fair Market Value |  |  | Fair Market Value of Investments with Unrealized Losses |
|  | (in thousands) |
Marketable securities |  | $ | 522,228 |  |  | $ | 92 |  |  | $ | (40 | ) |  | $ | 522,280 |  |  | $ | 61,806 |
Long-term marketable securities |  |  | 79,748 |  |  |  | 8,985 |  |  |  | (173 | ) |  |  | 88,560 |  |  |  | 8,612 |
|  | $ | 601,976 |  |  | $ | 9,077 |  |  | $ | (213 | ) |  | $ | 610,840 |  |  | $ | 70,418 |
Contractual Maturities of Investments Held | The contractual maturities of investments in available-for-sale securities held at April 4, 2021 were as follows:
|  | April 4, 2021 |
|  | Cost |  |  | Fair Market Value |
|  | (in thousands) |
Due within one year |  | $ | 478,221 |  |  | $ | 478,293 |
Due after 1 year through 5 years |  |  | 28,597 |  |  |  | 29,038 |
Due after 5 years through 10 years |  |  | 6,103 |  |  |  | 6,484 |
Due after 10 years |  |  | 34,479 |  |  |  | 37,659 |
Total |  | $ | 547,400 |  |  | $ | 551,474 |
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of April 4, 2021 and December 31, 2020:
|  | Balance Sheet Location |  | April 4, 2021 |  |  | December 31, 2020 |
|  |  |  | (in thousands) |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepayments |  | $ | 16 |  |  | $ | 95 |
Foreign exchange contracts |  | Other current liabilities |  |  | (393 | ) |  |  | (504 | )
Total derivatives |  |  |  | $ | (377 | ) |  | $ | (409 | )
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 for the three months ended April 4, 2021 and March 29, 2020:
|  | Location of Losses Recognized in Statement of Operations |  | For the Three Months Ended |
|  | April 4, 2021 |  |  | March 29, 2020 |
|  |  |  | (in thousands) |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Other (income) expense, net |  | $ | 2,118 |  |  | $ | 4,011 |
(1) | The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies.
(2) | For the three months ended April 4, 2021 and March 29, 2020, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.2 million and $2.0 million, respectively.

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- 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 No definition available. + Details
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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 + Details
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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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