Goodwill and Acquired Intangible Assets

9 Months Ended

Sep. 28, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

O. GOODWILL AND ACQUIRED INTANGIBLE ASSETS

Goodwill

Goodwill is considered impaired when the carrying value of a reporting unit exceeds its estimated fair value. Teradyne performs its annual goodwill impairment test as required under the provisions of Accounting Standards Codification ("ASC") 350-10, “Intangibles—Goodwill and Other” on December 31 of each fiscal year unless there are negative qualitative factors relating to macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant events and changes during an interim period. The presence of such factors could, under certain circumstances, be a triggering event that causes us to perform a goodwill impairment test.

At June 29, 2025, the Company identified a triggering event for the Robotics reporting unit and performed an interim impairment test of the related goodwill and long-lived assets, including intangible assets. Based on the analysis performed, Teradyne did not record an impairment.

At September 28, 2025, Teradyne assessed the above factors for all reporting units, including the Robotics reporting unit, and performed a triggering event assessment, concluding that no events or circumstances occurred that indicated it was more likely than not that the fair value was below its carrying amount. Accordingly, the Company did not identify a triggering event and no quantitative impairment test of goodwill was required.

The changes in the carrying amount of goodwill by reportable segments for the nine months ended September 28, 2025, were as follows:


	Robotics		Semiconductor Test			Product Test			Total
	(in thousands)
Balance at December 31, 2024
Goodwill	$	375,298	$	262,117		$	520,518		$	1,157,933
Accumulated impairment losses		—		(260,540	)		(502,026	)		(762,566	)
Total Goodwill		375,298		1,577			18,492			395,367
AET acquisition		—		1,257			—			1,257
Quantifi acquisition		—		—			83,068			83,068
Foreign currency translation adjustment		39,648		210			—			39,858
Balance at September 28, 2025
Goodwill	$	414,946	$	263,584		$	603,586		$	1,282,116
Accumulated impairment losses		—		(260,540	)		(502,026	)		(762,566	)
Total Goodwill	$	414,946	$	3,044		$	101,560		$	519,550

Intangible Assets

Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate.

Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet:


	Gross Carrying Amount (1)		Accumulated Amortization (1)			Foreign Currency Translation Adjustment			Net Carrying Amount
	(in thousands)
Balance at September 28, 2025
Developed technology	$	250,025	$	(208,314	)	$	60		$	41,771
Customer relationships		56,480		(51,335	)		204			5,349
Tradenames and trademarks		40,487		(31,853	)		(1,046	)		7,588
Total intangible assets	$	346,992	$	(291,502	)	$	(782	)	$	54,708
Balance at December 31, 2024
Developed technology	$	267,706	$	(255,448	)	$	(5,820	)	$	6,438
Customer relationships		52,109		(49,562	)		204			2,751
Tradenames and trademarks		59,007		(50,805	)		(1,464	)		6,738
Total intangible assets	$	378,822	$	(355,815	)	$	(7,080	)	$	15,927

(1)

In the nine months ended September 28, 2025, $81.8 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization.

Aggregate intangible asset amortization expense was $3.5 million and $11.8 million, respectively, for the three and nine months ended September 28, 2025, and $4.7 million and $14.1 million, respectively, for the three and nine months ended September 29, 2024.

Estimated intangible asset amortization expense for each of the five succeeding fiscal years and thereafter is as follows:


Year	Amortization Expense
	(in thousands)
2025	$	3,409
2026		8,215
2027		6,999
2028		6,918
2029		5,557
Thereafter		23,610