Financial Instruments (Tables)

6 Months Ended

Jun. 29, 2025

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 29, 2025, and December 31, 2024.


	June 29, 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	$	146,193	$	—	$	—	$	146,193
Cash equivalents		189,910		3,149		—		193,059
Available-for-sale securities:
U.S. Treasury securities		—		41,910		—		41,910
Corporate debt securities		—		35,059		—		35,059
Debt mutual funds		12,350		—		—		12,350
U.S. government agency securities		—		4,040		—		4,040
Certificates of deposit and time deposits		—		1,694		—		1,694
Non-U.S. government securities		—		962		—		962
Equity securities:
Mutual funds		53,307		—		—		53,307
	$	401,760	$	86,814	$	—	$	488,574
Derivative assets		—		1,334		—		1,334
Total	$	401,760	$	88,148	$	—	$	489,908
Liabilities
Derivative liabilities		—		1,373		—	$	1,373
Total	$	—	$	1,373	$	—	$	1,373

Reported as follows:
	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets
Cash and cash equivalents	$	336,103	$	3,149	$	—	$	339,252
Marketable securities		—		28,638		—		28,638
Long-term marketable securities		65,657		55,027		—		120,684
Prepayments		—		1,334		—		1,334
Total	$	401,760	$	88,148	$	—	$	489,908
Liabilities
Other current liabilities	$	—	$	1,373	$	—	$	1,373
Total	$	—	$	1,373	$	—	$	1,373


	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:
Corporate debt securities		—		35,696		—		35,696
U.S. Treasury securities		—		44,942		—		44,942
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 June 29, 2025, and December 31, 2024, were as follows:


	June 29, 2025				December 31, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in thousands)
Assets
Cash and cash equivalents	$	339,252	$	339,252	$	553,354	$	553,354
Marketable securities		149,322		149,322		170,433		170,433
Derivative assets		1,334		1,334		1,665		1,665
Liabilities
Derivative liabilities		1,373		1,373		1,324		1,324

Schedule of Available-for-Sale Marketable Securities

The following table summarizes the composition of available-for-sale marketable securities at June 29, 2025:


	June 29, 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	$	46,656	$	37	$	(4,783	)	$	41,910	$	32,277
Corporate debt securities		39,262		186		(4,389	)		35,059		24,249
Debt mutual funds		12,564		—		(214	)		12,350		2,715
U.S. government agency securities		4,041		—		(1	)		4,040		2,318
Certificates of deposit and time deposits		1,694		—		—			1,694		—
Non-U.S. government securities		962		—		—			962		—
	$	105,179	$	223	$	(9,387	)	$	96,015	$	61,559

Reported as follows:


	Cost		Unrealized Gain		Unrealized (Loss)			Fair Market Value		Fair Market Value of Investments with Unrealized Losses
	(in thousands)
Marketable securities	$	28,684	$	6	$	(52	)	$	28,638	$	19,524
Long-term marketable securities		76,495		217		(9,335	)		67,377		42,035
	$	105,179	$	223	$	(9,387	)	$	96,015	$	61,559

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 June 29, 2025, were as follows:


	June 29, 2025
	Cost		Fair Market Value
	(in thousands)
Due within one year	$	28,684	$	28,638
Due after 1 year through 5 years		20,756		20,560
Due after 5 years through 10 years		7,716		7,721
Due after 10 years		35,459		26,746
Total	$	92,615	$	83,665

Schedule of Notional Amount of Derivatives

At June 29, 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
	June 29, 2025		December 31, 2024
	(in millions)
Currency Hedged (Buy/Sell)
U.S. dollar/Singapore dollar		35.6		—
U.S. dollar/Taiwan dollar		17.1		14.5
U.S. dollar/Japanese yen		13.6		12.6
U.S. dollar/Korean won		10.8		4.2
U.S. dollar/British pound sterling		1.7		1.2
U.S. dollar/Danish krone		0.2		—
Euro/U.S. dollar		21.6		22.3
Danish krone/Chinese yuan		7.4		10.5
Philippine peso/U.S. dollar		1.9		9.4
Chinese yuan/U.S. dollar		1.3		1.6
Danish krone/U.S. dollar		0.8		16.9
Singapore dollar/U.S. dollar		—		28.9
Total	$	112.0	$	122.1

Schedule of Foreign Currency Cash Flow Hedges

At June 29, 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
	June 29, 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 June 29, 2025, and December 31, 2024:


	Balance Sheet Location	June 29, 2025			December 31, 2024
		(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets		1,334			725
Foreign exchange forward contracts	Other current liabilities		(1,373	)		(1,324	)
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Other current assets		—			940
Total derivatives		$	(39	)	$	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 six months ended June 29, 2025, and June 30, 2024:


		For the Three Months Ended					For the Six Months Ended
	Location of (Gains) Losses Recognized in Statement of Operations	June 29, 2025		June 30, 2024			June 29, 2025			June 30, 2024
		(in thousands)					(in thousands)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts (1)	Other (income) expense, net	$	122	$	(2,444	)	$	(45	)	$	(4,144	)
Foreign exchange option contracts	Other (income) expense, net		—		(4,154	)		—			9,764
Derivatives designated as hedging instruments:
Foreign exchange forward and option contracts	Revenue		298		—			(449	)		(2,280	)
Total Derivatives		$	420	$	(6,598	)	$	(494	)	$	3,340

(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 29, 2025, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.2 million and $3.4 million, respectively. 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.

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

TERADYNE, INC 10-Q