Recently Issued Accounting Pronouncements	12 Months Ended
Dec. 31, 2021
Recently Issued Accounting Pronouncements	C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” which simplifies the accounting for convertible debt instruments by reducing the number of accounting models and the number of embedded conversion features that could be recognized separately from the primary contract. This ASU requires a convertible debt instrument to be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives, and it requires an entity to use the if-converted method in the diluted earnings per share calculation for convertible instruments. This ASU permits the use of either the modified retrospective or fully retrospective method of transition. On November 4, 2021, Teradyne made an irrevocable election under the indenture entered into between Teradyne and Wilmington Trust, National Association, as trustee (the “Indenture”) for the issuance of the 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 to require the principal portion of the remaining Notes to be settled in cash. Upon adoption of ASU 2020-06, only the amounts settled in excess of the principal will be considered in diluted earnings per share under the if-converted method. Teradyne has adopted the standard effective January 1, 2022 using the modified retrospective method of transition. As a result of adoption Teradyne expects to record an entry to increase current debt, debt, and retained earnings by $1.5 million, $6.5 million, and $92.8 million, respectively. Mezzanine equity and additional paid-in capital are expected to be reduced by $100.8 million combined. The adoption of ASU 2020-06 will have an immaterial impact on our results of operations, statement of cash flows, and earnings per share.

Recently Issued Accounting Pronouncements

12 Months Ended

Dec. 31, 2021

Recently Issued Accounting Pronouncements

C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2020-06

– “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” which simplifies the accounting for convertible debt instruments by reducing the number of accounting models and the number of embedded conversion features that could be recognized separately from the primary contract. This ASU requires a convertible debt instrument to be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives, and it requires an entity to use the

if-converted

method in the diluted earnings per share calculation for convertible instruments. This ASU permits the use of either the modified retrospective or fully retrospective method of transition.

On November 4, 2021, Teradyne made an irrevocable election under the indenture entered into between Teradyne and Wilmington Trust, National Association, as trustee (the “Indenture”) for the issuance of the 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 to require the principal portion of the

remaining Notes to be settled in cash. Upon adoption of ASU 2020-06, only the amounts settled in excess of the principal will be considered in diluted earnings per share under the if-converted method. Teradyne has adopted the standard effective January 1, 2022 using the modified retrospective method of transition. As a result of adoption Teradyne expects to record an entry to increase current debt, debt, and retained earnings by

$1.5 million, $6.5 million, and $92.8

million, respectively. Mezzanine equity and additional paid-in capital are expected to be reduced by

$100.8

million combined. The adoption of ASU 2020-06 will have an immaterial impact on our results of operations, statement of cash flows, and earnings per share.