Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2021

Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations

The December 31 balances of these defined benefit pension plans assets and obligations are shown below:

	2021						2020
	United States			Foreign			United States			Foreign
	(in thousands)
Assets and Obligations
Change in benefit obligation:
Projected benefit obligation:
Beginning of year	$	202,233		$	50,988		$	203,791		$	43,952
Service cost		1,784			941			1,773			907
Interest cost		4,427			337			5,770			516
Actuarial (gain) loss		(6,432	)		(2,257	)		24,671			2,951
Benefits paid		(9,337	)		(925	)		(9,844	)		(1,299	)
Retiree annuity purchase		—			—			(24,379	)		—
Liability (gain) loss due to settlement		(204	)		—			451			—
Non-U.S. currency movement		—			(3,310	)		—			3,961
End of year		192,472			45,774			202,233			50,988
Change in plan assets:
Fair value of plan assets:
Beginning of year		158,855			1,856			166,932			1,586
Actual return on plan assets		(3,217	)		33			23,048			67
Company contributions		3,276			1,022			3,098			1,079
Benefits paid		(9,337	)		(925	)		(9,844	)		(988	)
Retiree annuity purchase		—			—			(24,379	)		—
Non-U.S. currency movement		—			31			—			112
End of year		149,578			2,017			158,855			1,856
Funded status	$	(42,894	)	$	(43,757	)	$	(43,378	)	$	(49,132	)

Amounts Recorded within Statement of Financial Position

The following table provides amounts recorded within the account line items of the statements of financial position as of December 31:

	2021						2020
	United States			Foreign			United States			Foreign
	(in thousands)
Retirement plans assets	$	15,110		$	—		$	17,468		$	—
Accrued employees’ compensation and withholdings		(3,288	)		(936	)		(3,273	)		(1,019	)
Retirement plans liabilities		(54,716	)		(42,821	)		(57,573	)		(48,113	)
Funded status	$	(42,894	)	$	(43,757	)	$	(43,378	)	$	(49,132	)

Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets

Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31:

	2021				2020
	United States		Foreign		United States		Foreign
	(in millions)
Projected benefit obligation	$	58.0	$	45.8	$	60.8	$	51.0
Accumulated benefit obligation		55.7		42.5		58.5		46.5
Fair value of plan assets		—		2.0		—		1.9

Net Periodic Pension and Postretirement Benefit Costs

For the years ended December 31, 2021, 2020, and 2019, Teradyne’s net periodic pension cost (income) was comprised of the following:

	2021						2020						2019
	United States			Foreign			United States			Foreign			United States			Foreign
	(in thousands)
Components of Net Periodic Pension Cost (Income):
Service cost	$	1,784		$	941		$	1,773		$	907		$	1,608		$	751
Interest cost		4,427			337			5,770			516			7,189			691
Expected return on plan assets		(3,858	)		(67	)		(4,840	)		(65	)		(6,042	)		(29	)
Net actuarial loss (gain)		643			(2,223	)		6,463			2,949			2,973			4,485
Settlement (gain) loss		(204	)		—			451			—			—			—
Total net periodic pension cost (income)	$	2,792		$	(1,012	)	$	9,617		$	4,307		$	5,728		$	5,898

Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation

Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1:

	2021						2020						2019
	United States			Foreign			United States			Foreign			United States			Foreign
Discount rate		2.2	%		0.7	%		2.8	%		1.1	%		4.1	%		1.8	%
Expected return on plan assets		2.4			3.5			3.0			3.8			4.3			2.0
Salary progression rate		2.4			2.3			2.6			2.5			2.3			2.5

Weighted Average Assumptions to Determine Pension Obligations at December 31:

	2021						2020
	United States			Foreign			United States			Foreign
Discount rate		2.6	%		1.1	%		2.2	%		0.7	%
Salary progression rate		2.4			2.2			2.4			2.3

Weighted Average Pension Asset Allocations by Category

The following table provides weighted average pension asset allocation by asset category at December 31, 2021 and 2020:

	2021						2020
	United States			Foreign			United States			Foreign
Fixed income securities		94.0	%		—	%		94.0	%		—	%
Equity securities		5.0			—			5.0			—
Other		1.0			100.0			1.0			100.0
		100.0	%		100.0	%		100.0	%		100.0	%

Target Asset Allocation and Index for Each Asset Category

The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows:

Asset Category:	Policy Index:	Target Allocation
U.S. corporate fixed income	Barclays U.S. Corporate A or Better Index		75	%
Global equity	MSCI World Minimum Volatility Index		5
U.S. government fixed income	Barclays U.S. Long Government Bond Index		14
High yield fixed income	Barclays U.S. Corporate High Yield 2% Issuer Cap Index		5
Cash	Citigroup Three Month U.S. Treasury Bill Index		1

Changes in Fair Value of Pension Assets

The fair value of pension plan assets by asset category and by level at December 31, 2021 and December 31, 2020 were as follows:

	December 31, 2021
	United States								Foreign
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in thousands)
Fixed income securities:
Corporate debt securities	$	—	$	119,805	$	—	$	119,805	$	—	$	—	$	—	$	—
U.S. government securities		—		20,847		—		20,847		—		—		—		—
Global equity		—		7,426		—		7,426		—		—		—		—
Other		—		—		—		—		—		2,017		—		2,017
Cash and cash equivalents		1,500		—		—		1,500		—		—		—		—
Total	$	1,500	$	148,078	$	—	$	149,578	$	—	$	2,017	$	—	$	2,017

	December 31, 2020
	United States								Foreign
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in thousands)
Fixed income securities:
Corporate debt securities	$	—	$	127,098	$	—	$	127,098	$	—	$	—	$	—	$	—
U.S. government securities		—		22,250		—		22,250		—		—		—		—
Global equity		—		7,925		—		7,925		—		—		—		—
Other		—		—		—		—		—		1,856		—		1,856
Cash and cash equivalents		1,582		—		—		1,582		—		—		—		—
Total	$	1,582	$	157,273	$	—	$	158,855	$	—	$	1,856	$	—	$	1,856

Expected Future Benefit Payments

Future benefit payments are expected to be paid as follows:

	United States		Foreign
	(in thousands)
2022	$	9,784	$	982
2023		9,386		1,268
2024		9,771		1,119
2025		10,333		1,074
2026		10,594		1,192
2027-2030		54,616		8,123

Postretirement Benefit Plans

Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations

The December 31 balances of the postretirement assets and obligations are shown below:

	2021			2020
	(in thousands)
Assets and Obligations
Change in benefit obligation:
Projected benefit obligation:
Beginning of year	$	8,515		$	9,003
Service cost		64			57
Interest cost		170			240
Actuarial (gain) loss		(433	)		421
Benefits paid		(1,107	)		(1,205	)
End of year		7,210			8,515
Change in plan assets:
Fair value of plan assets:
Beginning of year		—			—
Company contributions		1,107			1,205
Benefits paid		(1,107	)		(1,205	)
End of year		—			—
Funded status	$	(7,210	)	$	(8,515	)

Amounts Recorded within Statement of Financial Position

The following table provides amounts recorded within the account line items of financial position as of December 31:

	2021			2020
	(in thousands)
Accrued employees’ compensation and withholdings	$	(930	)	$	(1,161	)
Retirement plans liability		(6,280	)		(7,354	)
Funded status	$	(7,210	)	$	(8,515	)

Amounts Recognized in Accumulated Other Comprehensive Income (loss)

The following table provides amounts recognized in accumulated other comprehensive income (loss) as of December 31:

	2021			2020
	(in thousands)
Prior service credit, before tax	$	(40	)	$	(49	)
Deferred taxes		(1,688	)		(1,686	)
Total recognized in other comprehensive income (loss), net of tax	$	(1,728	)	$	(1,735	)

Net Periodic Pension and Postretirement Benefit Costs

For the years ended December 31, 2021, 2020, and 2019, Teradyne’s net periodic postretirement benefit (income) cost was comprised of the following:

	2021			2020			2019
	(in thousands)
Components of Net Periodic Postretirement Benefit (Income) Cost:
Service cost	$	64		$	57		$	41
Interest cost		170			240			347
Amortization of prior service credit		(9	)		(9	)		(191	)
Net actuarial (gain) loss		(433	)		421			717
Total net periodic postretirement benefit (income) cost		(208	)		709			914
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:
Reversal of amortization items:
Prior service credit		9			9			191
Total recognized in net periodic postretirement (income) cost and other comprehensive income	$	(199	)	$	718		$	1,105

Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation

Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1:

	2021			2020			2019
Discount rate		2.2	%		3.0	%		4.0	%
Initial health care cost trend rate		7.3			7.1			7.5
Ultimate health care cost trend rate		4.5			4.5			4.5
Year in which ultimate health care cost trend rate is reached		2029			2026			2026

Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31:

	2021			2020			2019
Discount rate		2.6	%		2.2	%		3.0	%
Initial medical trend		7.3			7.3			7.1
Ultimate health care trend		4.5			4.5			4.5
Medical cost trend rate decrease to ultimate rate in year		2029			2029			2026

Expected Future Benefit Payments

Expected Future Benefit Payments

Future benefit payments are expected to be paid as follows:

	Benefit Payments
	(in thousands)
2022	$	930
2023		774
2024		641
2025		528
2026		419
2027-2030		1,408