XML 45 R37.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following tables set forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2024, and December 31, 2023.

 

 

 

June 30, 2024

 

 

 

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

 

$

199,227

 

 

$

—

 

 

$

—

 

 

$

199,227

 

Cash equivalents

 

 

219,666

 

 

 

3,011

 

 

 

—

 

 

 

222,677

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

—

 

 

 

40,563

 

 

 

—

 

 

 

40,563

 

Corporate debt securities

 

 

—

 

 

 

35,041

 

 

 

—

 

 

 

35,041

 

Certificates of deposit and time deposits

 

 

—

 

 

 

21,688

 

 

 

—

 

 

 

21,688

 

Debt mutual funds

 

 

8,704

 

 

 

—

 

 

 

—

 

 

 

8,704

 

U.S. government agency securities

 

 

—

 

 

 

3,905

 

 

 

—

 

 

 

3,905

 

Commercial paper

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-U.S. government securities

 

 

—

 

 

 

767

 

 

 

—

 

 

 

767

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

51,709

 

 

 

—

 

 

 

—

 

 

 

51,709

 

 

$

479,306

 

 

$

104,975

 

 

$

—

 

 

$

584,281

 

Derivative assets

 

 

—

 

 

 

2,067

 

 

 

—

 

 

 

2,067

 

Total

 

$

479,306

 

 

$

107,042

 

 

$

—

 

 

$

586,348

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

—

 

 

 

1,352

 

 

 

—

 

 

$

1,352

 

Total

 

$

—

 

 

$

1,352

 

 

$

—

 

 

$

1,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

418,893

 

 

$

3,011

 

 

$

—

 

 

$

421,904

 

Marketable securities

 

 

—

 

 

 

38,654

 

 

 

—

 

 

 

38,654

 

Long-term marketable securities

 

 

60,413

 

 

 

63,310

 

 

 

—

 

 

 

123,723

 

Prepayments

 

 

—

 

 

 

2,067

 

 

 

—

 

 

 

2,067

 

Total

 

$

479,306

 

 

$

107,042

 

 

$

—

 

 

$

586,348

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

—

 

 

$

1,352

 

 

$

—

 

 

$

1,352

 

     Total

 

$

—

 

 

$

1,352

 

 

$

—

 

 

$

1,352

 

 

 

 

December 31, 2023

 

 

 

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

 

$

298,156

 

 

$

—

 

 

$

—

 

 

$

298,156

 

Cash equivalents

 

 

453,298

 

 

 

6,117

 

 

 

—

 

 

 

459,415

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

—

 

 

 

52,734

 

 

 

—

 

 

 

52,734

 

U.S. Treasury securities

 

 

—

 

 

 

41,808

 

 

 

—

 

 

 

41,808

 

Certificates of deposit and time deposits

 

 

—

 

 

 

21,772

 

 

 

—

 

 

 

21,772

 

Debt mutual funds

 

 

8,773

 

 

 

—

 

 

 

—

 

 

 

8,773

 

U.S. government agency securities

 

 

—

 

 

 

4,892

 

 

 

—

 

 

 

4,892

 

Commercial paper

 

 

—

 

 

 

1,667

 

 

 

—

 

 

 

1,667

 

Non-U.S. government securities

 

 

—

 

 

 

810

 

 

 

—

 

 

 

810

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual Funds

 

 

47,132

 

 

 

—

 

 

 

—

 

 

 

47,132

 

 

$

807,359

 

 

$

129,800

 

 

$

—

 

 

$

937,159

 

Derivative assets

 

 

—

 

 

 

18,746

 

 

 

—

 

 

 

18,746

 

Total

 

$

807,359

 

 

$

148,546

 

 

$

—

 

 

$

955,905

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

—

 

 

 

2,545

 

 

 

—

 

 

 

2,545

 

Total

 

$

—

 

 

$

2,545

 

 

$

—

 

 

$

2,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

751,454

 

 

$

6,117

 

 

$

—

 

 

$

757,571

 

Marketable securities

 

 

—

 

 

 

62,154

 

 

 

—

 

 

 

62,154

 

Long-term marketable securities

 

 

55,905

 

 

 

61,529

 

 

 

—

 

 

 

117,434

 

Other current assets

 

 

—

 

 

 

18,746

 

 

 

—

 

 

 

18,746

 

Total

 

$

807,359

 

 

$

148,546

 

 

$

—

 

 

$

955,905

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

—

 

 

$

2,545

 

 

$

—

 

 

$

2,545

 

Total

 

$

—

 

 

$

2,545

 

 

$

—

 

 

$

2,545

 
Schedule of Carrying Amounts and Fair Values of Financial Instruments

The carrying amounts and fair values of Teradyne’s financial instruments at June 30, 2024, and December 31, 2023, were as follows:

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

421,904

 

 

$

421,904

 

 

$

757,571

 

 

$

757,571

 

Marketable securities

 

 

162,377

 

 

 

162,377

 

 

 

179,588

 

 

 

179,588

 

Derivative assets

 

 

2,067

 

 

 

2,067

 

 

 

18,746

 

 

 

18,746

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

1,352

 

 

 

1,352

 

 

 

2,545

 

 

 

2,545

 
Schedule of Available-for-Sale Marketable Securities

The following table summarizes the composition of available-for-sale marketable securities at June 30, 2024:

 

 

 

June 30, 2024

 

 

 

Available-for-Sale

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

Corporate debt securities

 

$

39,750

 

 

$

58

 

 

$

(4,767

)

 

$

35,041

 

 

$

30,671

 

U.S. Treasury securities

 

 

45,305

 

 

 

—

 

 

 

(4,742

)

 

 

40,563

 

 

 

40,563

 

Certificates of deposit and time deposits

 

 

21,688

 

 

 

—

 

 

 

—

 

 

 

21,688

 

 

 

—

 

Debt mutual funds

 

 

9,060

 

 

 

—

 

 

 

(356

)

 

 

8,704

 

 

 

3,181

 

U.S. government agency securities

 

 

3,928

 

 

 

—

 

 

 

(23

)

 

 

3,905

 

 

 

3,905

 

Commercial paper

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-U.S. government securities

 

 

767

 

 

 

—

 

 

 

—

 

 

 

767

 

 

 

—

 

 

$

120,498

 

 

$

58

 

 

$

(9,888

)

 

$

110,668

 

 

$

78,320

 

 

Reported as follows:

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

Marketable securities

 

$

38,718

 

 

 

—

 

 

$

(64

)

 

$

38,654

 

 

$

16,966

 

Long-term marketable securities

 

 

81,780

 

 

 

58

 

 

 

(9,824

)

 

 

72,014

 

 

 

61,354

 

 

$

120,498

 

 

$

58

 

 

$

(9,888

)

 

$

110,668

 

 

$

78,320

 

The following table summarizes the composition of available-for-sale marketable securities at December 31, 2023:

 

 

 

December 31, 2023

 

 

 

Available-for-Sale

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

Corporate debt securities

 

$

56,458

 

 

$

201

 

 

$

(3,925

)

 

$

52,734

 

 

$

44,263

 

U.S. Treasury securities

 

 

45,725

 

 

 

14

 

 

 

(3,931

)

 

 

41,808

 

 

 

35,080

 

Certificates of deposit and time deposits

 

 

21,772

 

 

 

—

 

 

 

—

 

 

 

21,772

 

 

 

—

 

Debt mutual funds

 

 

9,081

 

 

 

—

 

 

 

(308

)

 

 

8,773

 

 

 

3,303

 

U.S. government agency securities

 

 

4,898

 

 

 

—

 

 

 

(6

)

 

 

4,892

 

 

 

4,892

 

Commercial paper

 

 

1,633

 

 

 

34

 

 

 

—

 

 

 

1,667

 

 

 

—

 

Non-U.S. government securities

 

 

810

 

 

 

—

 

 

 

—

 

 

 

810

 

 

 

—

 

 

$

140,377

 

 

$

249

 

 

$

(8,170

)

 

$

132,456

 

 

$

87,538

 

 

Reported as follows:

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

Marketable securities

 

$

62,385

 

 

$

36

 

 

$

(267

)

 

 

62,154

 

 

$

34,844

 

Long-term marketable securities

 

 

77,992

 

 

 

213

 

 

 

(7,903

)

 

 

70,302

 

 

 

52,694

 

 

$

140,377

 

 

$

249

 

 

$

(8,170

)

 

$

132,456

 

 

$

87,538

 

 
Contractual Maturities of Investments Held

The contractual maturities of investments in available-for-sale securities held at June 30, 2024, were as follows:

 

 

 

June 30, 2024

 

 

 

Cost

 

 

Fair Market
Value

 

 

 

(in thousands)

 

Due within one year

 

$

38,718

 

 

$

38,654

 

Due after 1 year through 5 years

 

 

27,821

 

 

 

27,285

 

Due after 5 years through 10 years

 

 

8,189

 

 

 

7,782

 

Due after 10 years

 

 

36,710

 

 

 

28,243

 

Total

 

$

111,438

 

 

$

101,964

 
Schedule of Notional Amount of Derivatives

At June 30, 2024, and December 31, 2023, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts:

 

 

 

Net Notional Value

 

 

 

June 30,
2024

 

 

December 31,
2023

 

 

 

(in millions)

 

Currency Hedged (Buy/Sell)

 

 

 

 

 

 

U.S. dollar/Japanese yen

 

 

42.8

 

 

 

11.0

 

U.S. dollar/Taiwan dollar

 

 

33.6

 

 

 

42.7

 

U.S. dollar/Danish krone

 

 

32.1

 

 

 

36.0

 

U.S. dollar/Korean won

 

 

8.9

 

 

 

7.2

 

U.S. dollar/British pound sterling

 

 

0.3

 

 

 

1.5

 

Euro/U.S. dollar

 

 

24.1

 

 

 

25.3

 

Singapore dollar/U.S. dollar

 

 

18.8

 

 

 

16.6

 

Philippine peso/U.S. dollar

 

 

9.5

 

 

 

10.1

 

Chinese yuan/U.S. dollar

 

 

1.3

 

 

 

1.0

 

Danish krone/U.S. dollar

 

 

0.6

 

 

 

0.7

 

Total

 

$

172.0

 

 

$

152.1

 
Schedule of Foreign Currency Cash Flow Hedges

At December 31, 2023, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S. currencies for U.S. dollars with the following notional amounts:

 

 

 

Net Notional Value

 

 

 

June 30,
2024

 

 

December 31,
2023

 

 

 

(in millions)

 

Currency Hedged (Buy/Sell)

 

 

 

 

 

 

U.S. dollar/Japanese yen

 

$

—

 

 

$

35.5

 

Total

 

$

—

 

 

$

35.5

 
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value

The following table summarizes the fair value of derivative instruments as of June 30, 2024, and December 31, 2023:

 

 

 

Balance Sheet Location

 

June 30,
2024

 

 

December 31,
2023

 

 

 

 

 

(in thousands)

 

Derivatives not designated as hedging instruments:

 

Foreign exchange forward contracts

 

Other current assets

 

 

2,067

 

 

 

733

 

Foreign exchange forward contracts

 

Other current liabilities

 

 

(1,352

)

 

 

(2,545

)

Foreign exchange option contracts

 

Other current assets

 

 

—

 

 

 

17,364

 

Derivatives designated as hedging instruments:

 

Foreign exchange forward contracts

 

Other current assets

 

 

—

 

 

 

648

 

Total derivatives

 

 

 

$

715

 

 

$

16,200

 
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 and six months ended June 30, 2024, and July 2, 2023:

 

 

 

 

 

For the Three Months
 Ended

 

 

For the Six Months
 Ended

 

 

 

Location of (Gains) Losses
Recognized in Statement
of Operations

 

June 30,
2024

 

 

July 2,
2023

 

 

June 30,
2024

 

 

July 2,
2023

 

 

 

 

 

(in thousands)

 

 

(in thousands)

 

Derivatives not designated as hedging instruments:

 

Foreign exchange forward contracts
   (1)

 

Other (income) expense, net

 

$

(2,444

)

 

$

(4,040

)

 

$

(4,144

)

 

$

(2,781

)

Foreign exchange option contracts

 

Other (income) expense, net

 

 

(4,154

)

 

 

—

 

 

 

9,764

 

 

 

—

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

Foreign exchange forward and option
   contracts

 

Revenue

 

 

—

 

 

 

414

 

 

 

(2,280

)

 

 

1,952

 

Total Derivatives

 

 

 

$

(6,598

)

 

$

(3,626

)

 

$

3,340

 

 

$

(829

)

 

(1)
The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the three and six months ended June 30, 2024, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $3.3 million and $6.0 million, respectively. For the three and six months ended July 2, 2023, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $6.7 million and $7.0 million, respectively.