Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes and Provision (Benefit) for Income Taxes from Operations

The components of income before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows:

	2024			2023			2022
	(in thousands)
Income before income taxes:
U.S.	$	231,346		$	307,997		$	385,968
Non-U.S.		377,740			217,575			454,417
	$	609,086		$	525,572		$	840,385
Provision (benefit) for income taxes:
Current:
U.S. Federal	$	40,296		$	58,063		$	86,692
Non-U.S.		62,851			54,037			74,204
State		2,716			2,362			2,681
		105,863			114,462			163,577
Deferred:
U.S. Federal		(33,195	)		(27,459	)		(36,739	)
Non-U.S.		(9,003	)		(8,584	)		1,232
State		(4,162	)		(1,599	)		(3,186	)
		(46,360	)		(37,642	)		(38,693	)
Total provision for income taxes:	$	59,503		$	76,820		$	124,884

Reconciliation of Effective Tax Rate

A reconciliation of the effective tax rate for the years 2024, 2023 and 2022 is as follows:

	2024			2023			2022
U.S. statutory federal tax rate		21.0	%		21.0	%		21.0	%
U.S. global intangible low-taxed income		1.2			0.8			1.2
Non-deductible officers’ compensation		0.3			1.1			1.3
Equity compensation		—			(0.4	)		(1.1	)
U.S. foreign derived intangible income		(3.1	)		(3.9	)		(3.1	)
U.S. research and development credit		(3.0	)		(4.2	)		(1.8	)
Foreign taxes		(2.7	)		2.5			(1.9	)
Uncertain tax positions		(1.9	)		0.7			0.1
Foreign tax credits		(1.3	)		(3.3	)		(1.0	)
State income taxes, net of federal tax benefit		(0.1	)		0.1			(0.1	)
Other, net		(0.6	)		0.2			0.3
		9.8	%		14.6	%		14.9	%

Deferred Tax Assets (Liabilities)

Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2024 and 2023 were as follows:

	2024			2023
	(in thousands)
Deferred tax assets:
Tax credits	$	121,635		$	112,571
Research and development		116,746			82,571
Pension liabilities		25,202			24,997
Accruals		23,946			25,644
Inventory valuations		18,688			19,289
Lease liability		17,828			21,167
Net operating loss carryforwards		16,894			5,737
Deferred revenue		14,562			13,807
Equity compensation		8,901			7,179
Vacation accrual		6,847			6,096
Intangible assets		4,720			2,323
Investment impairment		3,328			3,292
Marketable securities		—			128
Other		322			953
Gross deferred tax assets		379,619			325,754
Less: valuation allowance		(117,254	)		(109,251	)
Total deferred tax assets	$	262,365		$	216,503
Deferred tax liabilities:
Depreciation	$	(18,788	)	$	(16,681	)
Right of use assets		(16,257	)		(19,016	)
Contingent consideration		(5,270	)		(5,214	)
Marketable securities		(650	)		—
Total deferred tax liabilities	$	(40,965	)	$	(40,911	)
Net deferred assets	$	221,400		$	175,592

Operating Loss Carryforwards

At December 31, 2024, Teradyne had tax effected operating loss carryforwards that expire in the following years:

	State Operating Loss Carryforwards		Foreign Operating Loss Carryforwards
	(in thousands)
2025	$	4	$	—
2026		—		—
2027		—		—
2028		10		80
2029		49		465
2030-2034		62		34
2035-2039		37		—
Beyond 2039		19		—
Non-expiring		54		16,079
Total	$	235	$	16,658

Unrecognized Tax Benefits

Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 were as follows:

	2024			2023			2022
	(in thousands)
Beginning balance as of January 1	$	18,606		$	15,608		$	14,465
Additions:
Tax positions for current year					—			1,398
Tax positions for prior years					3,024			13
Reductions:
Tax positions for prior years		(2,696	)		(26	)		(56	)
Expiration of statutes		(8,247	)		—			(212	)
Ending balance as of December 31	$	7,663		$	18,606		$	15,608