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Financial Instruments (Tables)
 9 Months Ended
Sep. 28, 2025
Fair Value Disclosures [Abstract]  
Realized and Unrealized Gains and Loss

 

 

For the Three Months
 Ended

 

 

For the Nine Months
 Ended

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

September 28,
2025

 

 

September 29,
2024

 

 

 

(in millions)

 

 

(in millions)

 

Realized gains and losses included in 'Other (income) expense, net' in the condensed consolidated statement of operations

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains

 

$

0.7

 

 

$

0.8

 

 

$

1.8

 

 

$

2.1

 

Realized losses

 

 

—

 

 

 

—

 

 

 

1.3

 

 

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on equity securities included in 'Other (income) expense, net' in the condensed consolidated statement of operations

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains on equity securities

 

 

3.1

 

 

 

2.2

 

 

 

7.4

 

 

 

5.4

 

Unrealized losses on equity securities

 

 

0.1

 

 

 

—

 

 

 

3.2

 

 

 

—

 
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 September 28, 2025, and December 31, 2024.

 

 

 

September 28, 2025

 

 

 

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

 

$

180,730

 

 

$

—

 

 

$

—

 

 

$

180,730

 

Cash equivalents

 

 

91,970

 

 

 

—

 

 

 

—

 

 

 

91,970

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

—

 

 

 

44,759

 

 

 

—

 

 

 

44,759

 

Corporate debt securities

 

 

—

 

 

 

36,748

 

 

 

—

 

 

 

36,748

 

Debt mutual funds

 

 

14,766

 

 

 

—

 

 

 

—

 

 

 

14,766

 

Certificates of deposit and time deposits

 

 

—

 

 

 

1,613

 

 

 

—

 

 

 

1,613

 

U.S. government agency securities

 

 

—

 

 

 

1,098

 

 

 

—

 

 

 

1,098

 

Non-U.S. government securities

 

 

—

 

 

 

937

 

 

 

—

 

 

 

937

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

54,754

 

 

 

—

 

 

 

—

 

 

 

54,754

 

 

$

342,220

 

 

$

85,155

 

 

$

—

 

 

$

427,375

 

Derivative assets

 

 

—

 

 

 

310

 

 

 

—

 

 

 

310

 

Total

 

$

342,220

 

 

$

85,465

 

 

$

—

 

 

$

427,685

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

—

 

 

 

1,129

 

 

 

—

 

 

$

1,129

 

Total

 

$

—

 

 

$

1,129

 

 

$

—

 

 

$

1,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

272,700

 

 

$

—

 

 

$

—

 

 

$

272,700

 

       Long-term marketable securities

 

 

69,520

 

 

 

60,138

 

 

 

-

 

 

 

129,658

 

Marketable securities

 

 

—

 

 

 

25,017

 

 

 

—

 

 

 

25,017

 

Prepayments

 

 

—

 

 

 

310

 

 

 

—

 

 

 

310

 

Total

 

$

342,220

 

 

$

85,465

 

 

$

—

 

 

$

427,685

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

—

 

 

$

1,129

 

 

$

—

 

 

$

1,129

 

     Total

 

$

—

 

 

$

1,129

 

 

$

—

 

 

$

1,129

 

 

 

 

December 31, 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

 

$

261,176

 

 

$

—

 

 

$

—

 

 

$

261,176

 

Cash equivalents

 

 

283,037

 

 

 

9,141

 

 

 

—

 

 

 

292,178

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

            U.S. Treasury securities

 

 

—

 

 

 

44,942

 

 

 

—

 

 

 

44,942

 

Corporate debt securities

 

 

—

 

 

 

35,696

 

 

 

—

 

 

 

35,696

 

Certificates of deposit and time deposits

 

 

—

 

 

 

21,689

 

 

 

—

 

 

 

21,689

 

Debt mutual funds

 

 

8,951

 

 

 

—

 

 

 

—

 

 

 

8,951

 

U.S. government agency securities

 

 

—

 

 

 

3,970

 

 

 

—

 

 

 

3,970

 

Non-U.S. government securities

 

 

—

 

 

 

773

 

 

 

—

 

 

 

773

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual Funds

 

 

54,412

 

 

 

—

 

 

 

—

 

 

 

54,412

 

 

$

607,576

 

 

$

116,211

 

 

$

—

 

 

$

723,787

 

Derivative assets

 

 

—

 

 

 

1,665

 

 

 

—

 

 

 

1,665

 

Total

 

$

607,576

 

 

$

117,876

 

 

$

—

 

 

$

725,452

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

—

 

 

 

1,324

 

 

 

—

 

 

 

1,324

 

Total

 

$

—

 

 

$

1,324

 

 

$

—

 

 

$

1,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

544,213

 

 

$

9,141

 

 

$

—

 

 

$

553,354

 

Marketable securities

 

 

—

 

 

 

46,312

 

 

 

—

 

 

 

46,312

 

Long-term marketable securities

 

 

63,363

 

 

 

60,758

 

 

 

—

 

 

 

124,121

 

Prepayments

 

 

—

 

 

 

1,665

 

 

 

—

 

 

 

1,665

 

Total

 

$

607,576

 

 

$

117,876

 

 

$

—

 

 

$

725,452

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

—

 

 

$

1,324

 

 

$

—

 

 

$

1,324

 

Total

 

$

—

 

 

$

1,324

 

 

$

—

 

 

$

1,324

 
Schedule of Carrying Amounts and Fair Values of Financial Instruments

The carrying amounts and fair values of Teradyne’s financial instruments at September 28, 2025, and December 31, 2024, were as follows:

 

 

 

September 28, 2025

 

 

December 31, 2024

 

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

272,700

 

 

$

272,700

 

 

$

553,354

 

 

$

553,354

 

Marketable securities

 

 

154,675

 

 

 

154,675

 

 

 

170,433

 

 

 

170,433

 

Derivative assets

 

 

310

 

 

 

310

 

 

 

1,665

 

 

 

1,665

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

1,129

 

 

 

1,129

 

 

 

1,324

 

 

 

1,324

 
Schedule of Available-for-Sale Marketable Securities

The following table summarizes the composition of available-for-sale marketable securities at September 28, 2025:

 

 

 

September 28, 2025

 

 

 

Available-for-Sale

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

U.S. Treasury securities

 

$

49,271

 

 

$

63

 

 

$

(4,575

)

 

$

44,759

 

 

$

21,338

 

Corporate debt securities

 

 

40,281

 

 

 

280

 

 

 

(3,813

)

 

 

36,748

 

 

 

24,216

 

Debt mutual funds

 

 

14,945

 

 

 

—

 

 

 

(179

)

 

 

14,766

 

 

 

2,972

 

Certificates of deposit and time deposits

 

 

1,613

 

 

 

—

 

 

 

—

 

 

 

1,613

 

 

 

—

 

U.S. government agency securities

 

 

1,098

 

 

 

—

 

 

 

—

 

 

 

1,098

 

 

 

1,098

 

Non-U.S. government securities

 

 

937

 

 

 

—

 

 

 

—

 

 

 

937

 

 

 

—

 

 

$

108,145

 

 

$

343

 

 

$

(8,567

)

 

$

99,921

 

 

$

49,624

 

 

Reported as follows:

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

Marketable securities

 

$

25,012

 

 

$

25

 

 

$

(20

)

 

$

25,017

 

 

$

6,517

 

Long-term marketable securities

 

 

83,133

 

 

 

318

 

 

 

(8,547

)

 

 

74,904

 

 

 

43,107

 

 

$

108,145

 

 

$

343

 

 

$

(8,567

)

 

$

99,921

 

 

$

49,624

 

The following table summarizes the composition of available-for-sale marketable securities at December 31, 2024:

 

 

 

December 31, 2024

 

 

 

Available-for-Sale

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

U.S. Treasury securities

 

$

49,879

 

 

$

14

 

 

$

(4,951

)

 

$

44,942

 

 

$

30,530

 

Corporate debt securities

 

 

40,395

 

 

 

79

 

 

 

(4,778

)

 

 

35,696

 

 

 

27,824

 

Certificates of deposit and time deposits

 

 

21,689

 

 

 

—

 

 

 

—

 

 

 

21,689

 

 

 

—

 

Debt mutual funds

 

 

9,299

 

 

 

—

 

 

 

(348

)

 

 

8,951

 

 

 

3,238

 

U.S. government agency securities

 

 

3,966

 

 

 

5

 

 

 

(1

)

 

 

3,970

 

 

 

1,946

 

Non-U.S. government securities

 

 

773

 

 

 

—

 

 

 

—

 

 

 

773

 

 

 

—

 

 

$

126,001

 

 

$

98

 

 

$

(10,078

)

 

$

116,021

 

 

$

63,538

 

 

Reported as follows:

 

 

 

Cost

 

 

Unrealized
Gain

 

 

Unrealized
(Loss)

 

 

Fair
Market
Value

 

 

Fair Market
Value of
Investments
with Unrealized
Losses

 

 

 

(in thousands)

 

Marketable securities

 

$

46,349

 

 

$

16

 

 

$

(53

)

 

$

46,312

 

 

$

10,454

 

Long-term marketable securities

 

 

79,652

 

 

 

82

 

 

 

(10,025

)

 

 

69,709

 

 

 

53,084

 

 

$

126,001

 

 

$

98

 

 

$

(10,078

)

 

$

116,021

 

 

$

63,538

 

 
Contractual Maturities of Investments Held

The contractual maturities of investments in available-for-sale securities held at September 28, 2025, were as follows:

 

 

 

September 28, 2025

 

 

 

Cost

 

 

Fair Market
Value

 

 

 

(in thousands)

 

Due within one year

 

$

25,012

 

 

$

25,017

 

Due after 1 year through 5 years

 

 

24,346

 

 

 

24,202

 

Due after 5 years through 10 years

 

 

8,575

 

 

 

8,683

 

Due after 10 years

 

 

35,267

 

 

 

27,253

 

Total

 

$

93,200

 

 

$

85,155

 
Schedule of Notional Amount of Derivatives

At September 28, 2025, and December 31, 2024, 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:

 

 

 

Gross Notional Value

 

 

 

September 28,
2025

 

 

December 31,
2024

 

 

 

(in millions)

 

Currency Hedged (Buy/Sell)

 

 

 

 

 

 

U.S. dollar/Taiwan dollar

 

 

24.9

 

 

 

14.5

 

U.S. dollar/Japanese yen

 

 

8.7

 

 

 

12.6

 

U.S. dollar/Danish krone

 

 

7.0

 

 

 

—

 

U.S. dollar/Korean won

 

 

4.0

 

 

 

4.2

 

U.S. dollar/British pound sterling

 

 

1.8

 

 

 

1.2

 

Singapore dollar/U.S. dollar

 

 

48.1

 

 

 

28.9

 

Euro/U.S. dollar

 

 

16.9

 

 

 

22.3

 

Danish krone/Chinese yuan

 

 

10.3

 

 

 

10.5

 

Philippine peso/U.S. dollar

 

 

1.8

 

 

 

9.4

 

Chinese yuan/U.S. dollar

 

 

0.9

 

 

 

1.6

 

Danish krone/U.S. dollar

 

 

0.8

 

 

 

16.9

 

Total

 

$

125.2

 

 

$

122.1

 
Schedule of Foreign Currency Cash Flow Hedges

At September 28, 2025, and December 31, 2024, 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:

 

 

 

Gross Notional Value

 

 

 

September 28,
2025

 

 

December 31,
2024

 

 

 

(in millions)

 

Currency Hedged (Buy/Sell)

 

 

 

 

 

 

U.S. dollar/Japanese yen

 

$

—

 

 

$

15.6

 

Total

 

$

—

 

 

$

15.6

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

The following table summarizes the fair value of derivative instruments as of September 28, 2025, and December 31, 2024:

 

 

 

Balance Sheet Location

 

September 28,
2025

 

 

December 31,
2024

 

 

 

 

 

(in thousands)

 

Derivatives not designated as hedging instruments:

 

Foreign exchange forward contracts

 

Other current assets

 

 

310

 

 

 

725

 

Foreign exchange forward contracts

 

Other current liabilities

 

 

(1,129

)

 

 

(1,324

)

Derivatives designated as hedging instruments:

 

Foreign exchange forward contracts

 

Other current assets

 

 

—

 

 

 

940

 

Total derivatives

 

 

 

$

(819

)

 

$

341

 
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 nine months ended September 28, 2025, and September 29, 2024:

 

 

 

 

 

For the Three Months
 Ended

 

 

For the Nine Months
 Ended

 

 

 

Location of (Gains) Losses
Recognized in Statement
of Operations

 

September 28,
2025

 

 

September 29,
2024

 

 

September 28,
2025

 

 

September 29,
2024

 

 

 

 

 

(in thousands)

 

 

(in thousands)

 

Derivatives not designated as hedging instruments:

 

Foreign exchange forward contracts (1)

 

Other (income) expense, net

 

$

218

 

 

$

4,829

 

 

$

174

 

 

$

686

 

Foreign exchange option contracts

 

Other (income) expense, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,764

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

Foreign exchange forward and option contracts

 

Revenue

 

 

—

 

 

 

—

 

 

 

(449

)

 

 

(2,280

)

Total Derivatives

 

 

 

$

218

 

 

$

4,829

 

 

$

(275

)

 

$

8,170

 

 

(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 nine months ended September 28, 2025, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.8 million and $6.2 million, respectively. For the three and nine months ended September 29, 2024, net losses (gains) from remeasurement of monetary assets and liabilities denominated in foreign currencies were $(2.9) million and $3.1 million, respectively.