Leases

12 Months Ended

Dec. 31, 2023

Leases, Operating [Abstract]

Leases

I.LEASES

Teradyne has facility and auto leases, which are accounted for as operating leases. Teradyne’s facility leases are primarily used for administrative functions, research and development, manufacturing, and storage and distribution. Remaining lease terms range from less than one year to twelve years.

For the years ended December 31, 2023, 2022 and 2021, total lease expense was $42.7 million, $40.1 million, and $39.2 million respectively, and included $15.5 million, $14.1 million, and $12.6 million, respectively, of variable lease costs and $1.3 million, $2.0 million, and $1.8 million, respectively, of costs related to short-term leases, which are not recorded on the consolidated balance sheets.

At December 31, 2023, the weighted average remaining lease term and weighted average discount rate for operating leases was 6.3 years and 5.2%, respectively. At December 31, 2022, the weighted average remaining lease term and weighted average discount rate for operating leases was 5.9 years and 4.7%, respectively.

Supplemental cash flows information related to leases was as follows:

	For the Years Ended
	December 31, 2023		December 31, 2022		December 31, 2021
	(in thousands)
Cash paid for amounts included in the measurement of lease     liabilities included in operating cash flows:	$	26,059	$	20,775	$	24,593
Right-of-use assets obtained in exchange for new lease obligations		17,987		26,149		34,246

Maturities of lease liabilities as of December 31, 2023 were as follows:

	Operating Lease (1)
	(in thousands)
2024	$	21,045
2025		18,755
2026		15,074
2027		11,733
2028		7,622
Thereafter		23,906
Total lease payments		98,135
Less imputed interest		(15,521	)
Total lease liabilities	$	82,614

(1)Excludes $2.5 million of lease liabilities classified as liabilities held for sale. See Note E: “Assets held for sale” for additional information.