{
  "ticker": "TER",
  "company": "Teradyne Inc.",
  "filing_type": "10-K",
  "year_current": "2024",
  "year_prior": "2023",
  "summary": {
    "added": 38,
    "removed": 96,
    "modified": 78,
    "unchanged": 29,
    "total_current": 145,
    "total_prior": 203
  },
  "source": "SEC EDGAR",
  "url": "https://riskdiff.com/ter/2024-vs-2023/",
  "markdown_url": "https://riskdiff.com/ter/2024-vs-2023/index.md",
  "json_url": "https://riskdiff.com/ter/2024-vs-2023/index.json",
  "generated": "2026-06-01",
  "ai_summary": null,
  "risks": [
    {
      "status": "ADDED",
      "current_title": "The market for our products is concentrated, and our business depends, in part, on obtaining orders from a few significant customers.",
      "prior_title": null,
      "current_body": "10 10 Table of Contents Table of Contents Table of Contents The market for our products is concentrated with a limited number of significant customers accounting for a substantial portion of the purchases of test equipment. In each of the years, 2023, 2022 and 2021, our five largest direct customers in aggregate accounted for 32%, 26% and 33% of consolidated revenues, respectively. We estimate consolidated revenues driven by one OEM customer, of our Semiconductor Test and Wireless Test segments, combining direct sales to that customer with sales to the customer’s OSATs (which include Taiwan Semiconductor Manufacturing Company Ltd.), accounted for 19% of our consolidated revenues in 2021."
    },
    {
      "status": "ADDED",
      "current_title": "Customer consolidation could affect our operating results.",
      "prior_title": null,
      "current_body": "There has been a trend toward customer consolidation in the semiconductor industry through business combinations, including mergers, asset acquisitions and strategic partnerships. If this trend continues, it could make us more dependent on fewer customers who may be able to exert increased pressure on our prices and other contract terms and could increase the portion of our total sales concentration for any single customer. Customer consolidation activity could also reduce the demand for our products and services if such customers streamline research and development or operations, reduce purchases or delay purchasing decisions. These outcomes could negatively impact our operating results and financial condition."
    },
    {
      "status": "ADDED",
      "current_title": "We are subject to risks associated with doing business in China.",
      "prior_title": null,
      "current_body": "In addition to the risks associated with the tariffs and trade regulations detailed below, we are subject to the following risks associated with doing business in China: •adverse changes in Chinese political, economic or social conditions or Chinese laws, regulations or policies, including the imposition of unexpected or confiscatory taxation, restrictions on currency conversion, imports and sources of supply, devaluations of currency, the nationalization or other expropriation of private enterprises, or the reversal of economic reform policies that encourage private economic activity, foreign investments and greater economic decentralization; adverse changes in Chinese political, economic or social conditions or Chinese laws, regulations or policies, including the imposition of unexpected or confiscatory taxation, restrictions on currency conversion, imports and sources of supply, devaluations of currency, the nationalization or other expropriation of private enterprises, or the reversal of economic reform policies that encourage private economic activity, foreign investments and greater economic decentralization; •differing economic practices compared to most developed countries, including with respect to the amount of government involvement, control of foreign exchange and allocation of resources; differing economic practices compared to most developed countries, including with respect to the amount of government involvement, control of foreign exchange and allocation of resources; •uncertainties presented by the Chinese legal system, which is not fully integrated and continues to rapidly evolve, impeding our ability to interpret certain Chinese laws and regulations, predict and evaluate the outcome of administrative and court proceedings and the level of legal protection to enforce contracts we have entered into in China; and Chinese controls on the convertibility of Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China, restricting our ability to remit sufficient foreign currency to pay dividends or make other payments to us, or otherwise satisfy foreign currency-denominated obligations. uncertainties presented by the Chinese legal system, which is not fully integrated and continues to rapidly evolve, impeding our ability to interpret certain Chinese laws and regulations, predict and evaluate the outcome of administrative and court proceedings and the level of legal protection to enforce contracts we have entered into in China; and Chinese controls on the convertibility of Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China, restricting our ability to remit sufficient foreign currency to pay dividends or make other payments to us, or otherwise satisfy foreign currency-denominated obligations. The foregoing risks and the ongoing geopolitical tensions and economic uncertainty between the United States and China and the unknown impact of current and future Chinese rules and regulations, may cause increased costs, as well as restrictions on our ability to sell, or a decreased demand from customers to purchase, our products, which could harm our business, financial condition and operating results."
    },
    {
      "status": "ADDED",
      "current_title": "The Israel-Hamas conflict may have a material impact on our Business",
      "prior_title": null,
      "current_body": "The Israel-Hamas conflict could have a negative impact on our future revenue and supply chain, either of which could adversely affect our business and financial results. Our customers in Israel may experience delays in product releases due to impacts to their labor force and impacts on their suppliers because of the conflict, which could materially impact demand for our products. Similarly, our suppliers in Israel may experience delays in providing us with parts due to the conflict. In addition, the global economic uncertainty following the start of the conflict could impact demand for our products."
    },
    {
      "status": "ADDED",
      "current_title": "Adverse developments affecting the financial services industry, including events or risks involving liquidity, defaults or non-performance by financial institutions, could have a material adverse effect on our business, financial condition or results of operations.",
      "prior_title": null,
      "current_body": "On March 10, 2023, Silicon Valley Bank (SVB), who is a lender in our revolving credit facility and where we maintain certain accounts and cash deposits, was placed into receivership with the Federal Deposit Insurance Corporation (FDIC), which resulted in all funds held at SVB being temporarily inaccessible by SVB’s customers. As of March 13, 2023, access to our cash and cash equivalents at SVB was fully restored. Although our cash balances at SVB are insignificant and we do not expect further developments at SVB to have a material impact on our cash and cash equivalents, we do hold cash balances in several large financial institutions significantly in excess of FDIC and global insurance limits. If other banks and financial institutions with whom we have banking relationships enter receivership or become insolvent in the future, we may be unable to access, and we may lose, some or all of our existing cash, cash equivalents and investments to the extent those funds are not insured or otherwise protected by the FDIC."
    },
    {
      "status": "ADDED",
      "current_title": "Our stock price has been subject to fluctuations, and will likely continue to be subject to fluctuations, which may be volatile and due to factors beyond our control.",
      "prior_title": null,
      "current_body": "The market price of our common stock is subject to wide fluctuations in response to various factors, some of which are beyond our control. In addition to the factors discussed in this \"Risk Factors\" section and elsewhere in this report, factors that could cause fluctuations in the market price of our common stock include the following: •ratings changes by any securities analysts who follow our company; ratings changes by any securities analysts who follow our company; •announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments; announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments; •changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular; changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular; •changes in accounting standards, policies, guidelines, interpretations, or principles; changes in accounting standards, policies, guidelines, interpretations, or principles; •actual or anticipated developments in our business or our competitors’ businesses or the competitive landscape generally; actual or anticipated developments in our business or our competitors’ businesses or the competitive landscape generally; •developments or disputes concerning our intellectual property or our products and platform capabilities, or third-party proprietary rights; developments or disputes concerning our intellectual property or our products and platform capabilities, or third-party proprietary rights; •cybersecurity attacks or incidents; cybersecurity attacks or incidents; •announced or completed acquisitions of businesses or technologies by us or our competitors; announced or completed acquisitions of businesses or technologies by us or our competitors; •changes in our board of directors or management; changes in our board of directors or management; •announced or completed equity or debt transactions involving our securities; announced or completed equity or debt transactions involving our securities; 15 15 Table of Contents Table of Contents Table of Contents •sales of shares of our common stock by us, our officers, directors, or other stockholders; and sales of shares of our common stock by us, our officers, directors, or other stockholders; and •other events or factors, including those resulting from global and macroeconomic conditions, including heightened inflation, rising interest rates, bank failures, and a potential recession, and speculation regarding the same, as well as public health crises, geopolitical tension, incidents of terrorism, or responses to these events. other events or factors, including those resulting from global and macroeconomic conditions, including heightened inflation, rising interest rates, bank failures, and a potential recession, and speculation regarding the same, as well as public health crises, geopolitical tension, incidents of terrorism, or responses to these events. In addition, the market for technology stocks and the stock markets in general have experienced extreme price and volume fluctuations. Stock prices of many technology companies have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business, and adversely affect our business, results of operations, financial condition, and cash flows. A decline in the value of our common stock, including as a result of one or more factors set forth above, may result in substantial losses for our stockholders."
    },
    {
      "status": "ADDED",
      "current_title": "Risk management and strategy",
      "prior_title": null,
      "current_body": "Our global information security organization, led by our CISO, is responsible for our overall information security strategy, policy, security engineering, operations, and cyber threat detection and response. Our CISO is an experienced cybersecurity senior executive with more than 25 years of experience building and leading cybersecurity, risk management and information technology teams. The information security organization manages and continually enhances a robust enterprise security structure with the goal of preventing cybersecurity incidents to the extent feasible, while simultaneously increasing system resilience and deploying highly proficient detection and response capabilities in an effort to minimize the business impact should an incident occur. Central to this organization is our global cyber operations team, which is responsible for the protection, detection, and response capabilities used in the defense of critical data and enterprise computing services. We also have a corporate-wide insider threat detection program to proactively identify external and internal threats and mitigate those threats in a timely manner. Our broader Teradyne employee community also has a key role in our cybersecurity defenses and is immersed in a comprehensive training and awareness curriculum to build and promote a corporate culture supportive of security. Third parties also play a role in our cybersecurity. We engage third-party services to provide 24x7x365 monitoring, escalation, and response to cyber events. In addition to consulting on best practices, we leverage third parties for independent evaluations of our security controls through penetration testing and independent audits. These evaluations include testing both the design and operational effectiveness of security controls. We also share and receive threat intelligence with our industry peers, cybersecurity associations, and our cyber controls vendors. We rely on contract manufacturing organizations and distributors to deliver our products to our customers, and a cybersecurity incident at one of these organizations or a key supplier could materially adversely impact us. We assess third party and supply chain cybersecurity controls through risk monitoring services tailored to align with our risk policy. Notwithstanding the extensive approach we take to cybersecurity, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us, either directly within our managed environment or indirectly via a third-party partner or supply chain vendor. Periodically we have a recognized independent security expert firm to assess our cyber security maturity along with risks and provide feedback on where we should continue to improve to mitigate exposures. We share this review with our Board and develop a security roadmap which incorporates this feedback. Additionally, for our business that supports the defense and aerospace sector, we must comply with extensive regulations, including requirements imposed by the Defense Federal Acquisition Regulation Supplement (\"DFARS\") related to adequately safeguarding controlled unclassified information (\"CUI\") and reporting cybersecurity incidents to the DoD. We have implemented cybersecurity policies and frameworks based on industry and governmental standards to align closely with DoD requirements, instructions, and guidance. Moreover, we are pursuing the necessary controls to support the Cybersecurity Maturity Model Certification (\"CMMC\") program, DoD’s program to ensure members of the defense industrial base meet cybersecurity requirements for handling CUI and federal contract information. We believe we are well positioned to meet the requirements of the CMMC and are preparing for certification once the requirements are effective. 22 22 Table of Contents Table of Contents Table of Contents Item 2: Properties We conduct manufacturing, engineering, sales and marketing, service, corporate administration and other operations in various leased and owned facilities throughout the world. We own approximately 720,000 square feet of office space and lease approximately 1,500,000 square feet of office space. Our corporate headquarters is in North Reading, Massachusetts, in buildings that we own consisting of approximately 422,000 square feet. We believe our existing facilities and planned expansions noted below are adequate to meet our current and reasonably foreseeable requirements. We regularly evaluate our expected facility needs and periodically make adjustments based on these evaluations. In 2019, we purchased land in Denmark, approximately 200,000 square feet, to construct a new building for our Robotics operations. The new building construction is expected to be completed by the first half of 2024. Item 3: Legal Proceedings We are subject to legal proceedings, claims and investigations that arise in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. We believe that we have meritorious defenses against all pending claims and intend to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, we believe the potential losses associated with all these actions are unlikely to have a material adverse effect on our results of operations, financial condition or cash flows. Item 4: Mine Safety Disclosure Not Applicable. 23 23 Table of Contents Table of Contents Table of Contents PART II Item 5: Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the Nasdaq Global Select Market under the trading symbol “TER.” As of February 22, 2024, there were approximately 1,148 holders of record of shares of our common stock. See “Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for information on the frequency and amounts of our quarterly cash dividends, equity compensation plans and performance graph. The following table includes information with respect to repurchases we made of our common stock during the three months ended December 31, 2023 (in thousands except per share price): Period"
    },
    {
      "status": "ADDED",
      "current_title": "Supply Chain Constraints and Inflationary Pressures",
      "prior_title": null,
      "current_body": "The global supply shortage of electrical components, including semiconductor chips, impacted our supply chain in the first half of 2023. In the second half of 2023, we saw improvements related to supply constraints and, consequently, did not experience material increases in our lead times and costs for components. In addition, in the 2023, inflationary pressures contributed to increased costs for product components and wage inflation, which had a minimal impact on our cost of products, gross margin and profit for the year. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles. In an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. Though these mitigation efforts have not had a material impact on our financial results, our continuing efforts may not be successful. While our businesses could be impacted by supply constraints in the future, we do not anticipate supply chain constraints will have a material impact on our financial results in 2024."
    },
    {
      "status": "ADDED",
      "current_title": "Impact of the Israel-Hamas conflict on our Business",
      "prior_title": null,
      "current_body": "The recent Israel-Hamas conflict could have a negative impact on our future revenue and supply chain, either of which could adversely affect our business and financial results. Our customers in Israel may experience delays in product releases due to impacts to their labor force and impacts on their suppliers because of the conflict, which could materially impact demand for our products. Similarly, our suppliers in Israel may experience delays in providing us with parts due to the conflict. In addition, the global economic uncertainty following the start of the conflict could impact demand for our products."
    },
    {
      "status": "ADDED",
      "current_title": "Critical Accounting Policies and Estimates",
      "prior_title": null,
      "current_body": "We have identified the policies and estimates discussed below as critical to understanding our business and our results of operations and financial condition. The impact and any associated risks related to these estimates on our business operations is discussed throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations where such policies affect our reported and expected financial results. For a full description of our accounting policies related to the below items refer to Note B. Accounting Policies, included in the Notes to Consolidated Financial Statements in this Annual Report. Critical accounting estimates are complex and may require significant judgment by management. Changes to the underlying assumptions may have a material impact on our financial condition and results of operations. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ significantly from these estimates under different assumptions or conditions."
    },
    {
      "status": "ADDED",
      "current_title": "Results of Operations",
      "prior_title": null,
      "current_body": "Information pertaining to fiscal year 2021 results of operations, including a year-to-year comparison against fiscal year 2022, was included in our Annual Report on Form 10-K for the year ended December 31, 2022 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” which was filed with the SEC on February 22, 2023. This information is incorporated by reference herein. The following table sets forth the percentage of total net revenues included in our consolidated statements of operations:"
    },
    {
      "status": "ADDED",
      "current_title": "Years Ended December 31,",
      "prior_title": null,
      "current_body": "2023 2022 Percentage of revenues: Revenues: Products 78.3 % 82.1 % Services 21.7 17.9 Total revenues 100.0 100.0 Cost of revenues: Cost of products 33.0 33.0 Cost of services 9.6 7.8 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 42.6 40.8 Gross profit 57.4 59.2 Operating expenses: Selling and administrative 21.6 17.7 Engineering and development 15.6 14.0 Acquired intangible assets amortization 0.7 0.6 Restructuring and other 0.8 0.5 Total operating expenses 38.7 32.8 Income from operations 18.7 26.4 Non-operating (income) expenses: Interest income (1.0 ) (0.2 ) Interest expense 0.1 0.1 Other (income) expense, net — (0.2 ) Income before income taxes 19.6 26.6 Income tax provision 2.9 4.0 Net income 16.8 % 22.7 % 28 28 Table of Contents Table of Contents Table of Contents Revenues Revenues for our reportable segments were as follows: 2023 2022"
    },
    {
      "status": "ADDED",
      "current_title": "(in millions)",
      "prior_title": null,
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022"
    },
    {
      "status": "ADDED",
      "current_title": "(in millions)",
      "prior_title": null,
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022"
    },
    {
      "status": "ADDED",
      "current_title": "(in millions)",
      "prior_title": null,
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022"
    },
    {
      "status": "ADDED",
      "current_title": "(in millions)",
      "prior_title": null,
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022"
    },
    {
      "status": "ADDED",
      "current_title": "Recently Issued Accounting Pronouncements",
      "prior_title": null,
      "current_body": "In November 2023, the Financial Accounting Standards Board (\"FASB\") issued Accounting Standard Update (\"ASU\") No. 2023-07, \"Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures\", which will require us to disclose significant segment expenses and other segment items used by the Chief Operating Decision Maker (\"CODM\") on an annual and interim basis as well as provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, we will be required to disclose the title and position of the CODM. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU will have no impact on our results of operations, cash flows or financial condition. Upon adoption, we will apply the amendments in this ASU retrospectively to all prior period disclosures presented in the financial statements. In December 2023, FASB issued ASU 2023-09 –“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires expanded disclosures relating to the tax rate reconciliation, income taxes paid, income (loss) before income tax expense (benefit) and income tax expense (benefit), requiring a greater disaggregation of information for each. The provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The amendments in this update should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the impact of this new standard. Item 7A: Quantitative and Qualitative Disclosures about Market Risks"
    },
    {
      "status": "ADDED",
      "current_title": "Interest Rate Risk Management",
      "prior_title": null,
      "current_body": "We are exposed to potential losses due to changes in interest rates. Our interest rate exposure is primarily related to short-term and long-term marketable securities. In order to estimate the potential loss due to interest rate risk, a fluctuation in interest rates of 25 basis points was assumed. Market risk for the short and long-term marketable securities was estimated as the potential change in the fair value resulting from a hypothetical change in interest rates for securities contained in the investment portfolio. The potential change in the fair value from changes in interest rates is immaterial as of December 31, 2023 and 2022. 37 37 Table of Contents Table of Contents Table of Contents Item 8: Financial Statements and Supplementary Data"
    },
    {
      "status": "ADDED",
      "current_title": "SHAREHOLDERS’ EQUITY",
      "prior_title": null,
      "current_body": "Common stock, $0.125 par value, 1,000,000 shares authorized, 152,698 and 155,759 shares issued and outstanding at December 31, 2023 and 2022, respectively 19,087 19,470 Additional paid-in capital 1,827,274 1,755,963 Accumulated other comprehensive loss (26,978 ) (49,868 ) Retained earnings 706,514 725,729 Total shareholders’ equity 2,525,897 2,451,294 Total liabilities, convertible common shares and shareholders’ equity $ 3,486,824 $ 3,501,252 The accompanying notes are an integral part of the consolidated financial statements. 40 40 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "Year Ended December 31, 2022",
      "prior_title": null,
      "current_body": "$ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 Net issuance of common stock under stock-based plans 848 106 13,371 13,477 Stock-based compensation expense 57,940 57,940 Repurchase of common stock (3,909 ) (489 ) (400,040 ) (400,529 ) Cash dividends ($0.44 per share) (67,927 ) (67,927 ) Settlements of convertible notes 1,072 133 (133 ) — Exercise of convertible notes hedge call options (1,072 ) (133 ) 133 — Net income 448,752 448,752 Other comprehensive income 22,890 22,890"
    },
    {
      "status": "ADDED",
      "current_title": "Year Ended December 31, 2023",
      "prior_title": null,
      "current_body": "$ — 152,698 $ 19,087 $ 1,827,274 $ (26,978 ) $ 706,514 $ 2,525,897 The accompanying notes are an integral part of the consolidated financial statements. 43 43 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "(in thousands)",
      "prior_title": null,
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "Inventories",
      "prior_title": null,
      "current_body": "Inventories are stated at the lower of cost using a standard costing system which approximates cost based on a first-in, first-out basis or net realizable value. On a quarterly basis, we evaluate all inventories for net realizable value. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. Forecasted demand information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. The demand forecast is based on assumptions around the product life and customer and market expectations."
    },
    {
      "status": "ADDED",
      "current_title": "(in thousands)",
      "prior_title": null,
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "Advertising Costs",
      "prior_title": null,
      "current_body": "Teradyne expenses all advertising costs as incurred. Advertising costs were $15.5 million, $17.3 million and $13.4 million in 2023, 2022 and 2021, respectively. Translation of Non-U.S. Currencies The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2023, 2022 and 2021, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.9 million, $10.8 million, and $(2.1) million, respectively. 51 Table of Contents These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts."
    },
    {
      "status": "ADDED",
      "current_title": "Comprehensive Income",
      "prior_title": null,
      "current_body": "Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment. C.RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In November 2023, the Financial Accounting Standards Board (\"FASB\") issued Accounting Standard Update (\"ASU\") No. 2023-07, \"Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures\", which will require us to disclose significant segment expenses and other segment items used by the Chief Operating Decision Maker (\"CODM\") on an annual and interim basis as well as provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, we will be required to disclose the title and position of the CODM. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU will have no impact on Teradyne’s results of operations, cash flows or financial condition. Upon adoption, Teradyne will apply the amendments in this ASU retrospectively to all prior period disclosures presented in the financial statements.In December 2023, FASB issued ASU 2023-09 –“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires expanded disclosures relating to the tax rate reconciliation, income taxes paid, income (loss) before income tax expense (benefit) and income tax expense (benefit), requiring a greater disaggregation of information for each. The provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The amendments in this update should be applied on a prospective basis, but retrospective application is permitted. Teradyne is currently evaluating the impact of this new standard."
    },
    {
      "status": "ADDED",
      "current_title": "RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS",
      "prior_title": null,
      "current_body": "In November 2023, the Financial Accounting Standards Board (\"FASB\") issued Accounting Standard Update (\"ASU\") No. 2023-07, \"Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures\", which will require us to disclose significant segment expenses and other segment items used by the Chief Operating Decision Maker (\"CODM\") on an annual and interim basis as well as provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, we will be required to disclose the title and position of the CODM. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU will have no impact on Teradyne’s results of operations, cash flows or financial condition. Upon adoption, Teradyne will apply the amendments in this ASU retrospectively to all prior period disclosures presented in the financial statements. In December 2023, FASB issued ASU 2023-09 –“Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires expanded disclosures relating to the tax rate reconciliation, income taxes paid, income (loss) before income tax expense (benefit) and income tax expense (benefit), requiring a greater disaggregation of information for each. The provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The amendments in this update should be applied on a prospective basis, but retrospective application is permitted. Teradyne is currently evaluating the impact of this new standard. 52 52 Table of Contents Table of Contents Table of Contents D. REVENUE Disaggregation of Revenue The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Test Robotics System-on-a-chip Memory SystemTest Universal Robots Mobile Industrial Robots WirelessTest CorporateandEliminations Total (in thousands) For the Year Ended December 31, 2023 (1) Timing of Revenue Recognition Point in Time $ 1,141,882 $ 356,417 $ 268,379 $ 296,252 $ 66,986 $ 129,399 $ — $ 2,259,315 Over Time 290,739 29,598 69,818 7,540 4,405 14,883 — 416,983 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298 Geographical Market Asia Pacific $ 1,214,322 $ 366,151 $ 153,387 $ 63,312 $ 10,424 $ 85,415 $ — $ 1,893,011 Americas 117,728 11,367 151,579 111,761 36,191 50,770 — 479,396 Europe, Middle East and Africa 100,571 8,497 33,231 128,719 24,776 8,097 — 303,891 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298 For the Year Ended December 31, 2022 (1) Timing of Revenue Recognition Point in Time $ 1,445,238 $ 344,693 $ 402,074 $ 317,514 $ 73,812 $ 189,040 $ 251 $ 2,772,622 Over Time 261,646 29,013 67,272 8,218 3,594 12,680 — 382,423 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 Geographical Market Asia Pacific $ 1,514,964 $ 360,176 $ 294,350 $ 73,930 $ 15,724 $ 140,767 $ — $ 2,399,911 Americas 122,575 11,987 146,040 112,203 35,213 47,350 251 475,619 Europe, Middle East and Africa 69,345 1,543 28,956 139,599 26,469 13,603 — 279,515 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 For the Year Ended December 31, 2021 (1) Timing of Revenue Recognition Point in Time $ 1,989,979 $ 365,441 $ 409,383 $ 305,512 $ 60,884 $ 204,247 $ — $ 3,335,446 Over Time 256,751 30,171 58,356 5,670 3,839 12,648 — 367,435 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 Geographical Market Asia Pacific $ 2,076,647 $ 381,444 $ 306,812 $ 81,456 $ 12,919 $ 172,103 $ — $ 3,031,381 Americas 102,702 10,665 135,230 94,897 26,069 36,173 — 405,736 Europe, Middle East and Africa 67,381 3,503 25,697 134,829 25,735 8,619 — 265,764 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 (1)Includes $5.2 million, $8.2 million and $13.2 million in 2023, 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” Contract Balances For the years ended December 31, 2023, 2022 and 2021, Teradyne recognized $108.1 million, $112.4 million and $102.5 million, respectively, that was included within the deferred revenue and customer advances balances at the beginning of the period. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of December 31, 2023, Teradyne had $1,124.6 million of unsatisfied performance obligations. Teradyne expects to recognize 90% of the remaining performance obligation in the next 12 months, 9% in 1-3 years, and 1% thereafter. D. REVENUE"
    },
    {
      "status": "ADDED",
      "current_title": "Geographical Market",
      "prior_title": null,
      "current_body": "Asia Pacific $ 1,214,322 $ 366,151 $ 153,387 $ 63,312 $ 10,424 $ 85,415 $ — $ 1,893,011 Americas 117,728 11,367 151,579 111,761 36,191 50,770 — 479,396 Europe, Middle East and Africa 100,571 8,497 33,231 128,719 24,776 8,097 — 303,891 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298"
    },
    {
      "status": "ADDED",
      "current_title": "Geographical Market",
      "prior_title": null,
      "current_body": "Asia Pacific $ 1,214,322 $ 366,151 $ 153,387 $ 63,312 $ 10,424 $ 85,415 $ — $ 1,893,011 Americas 117,728 11,367 151,579 111,761 36,191 50,770 — 479,396 Europe, Middle East and Africa 100,571 8,497 33,231 128,719 24,776 8,097 — 303,891 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298"
    },
    {
      "status": "ADDED",
      "current_title": "Geographical Market",
      "prior_title": null,
      "current_body": "Asia Pacific $ 1,214,322 $ 366,151 $ 153,387 $ 63,312 $ 10,424 $ 85,415 $ — $ 1,893,011 Americas 117,728 11,367 151,579 111,761 36,191 50,770 — 479,396 Europe, Middle East and Africa 100,571 8,497 33,231 128,719 24,776 8,097 — 303,891 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298"
    },
    {
      "status": "ADDED",
      "current_title": "ASSETS HELD FOR SALE",
      "prior_title": null,
      "current_body": "On November 7, 2023, Teradyne entered into a definitive agreement to sell Teradyne’s Device Interface Solutions (\"DIS\") business, a component of the Semiconductor Test segment, to Technoprobe S.p.A. for $85.0 million in cash. As a result, the related assets and liabilities met the criteria and were classified as held-for-sale in Teradyne’s consolidated balance sheet as of December 31, 2023. The transaction, which does not qualify as a strategic shift required for discontinued operations treatment, is expected to close in the first half of 2024. 53 53 Table of Contents Table of Contents Table of Contents Assets held-for-sale comprise of the following as of December 31, 2023: December 31, 2023 (in thousands) Current assets: Inventories, net $ 17,952 Prepayments 5,298 Total current assets held for sale 23,250 Property, plant and equipment, net 8,986 Operating lease right-of-use assets, net 2,545 Total assets held for sale $ 34,781 Current liabilities: Accounts payable $ 6,356 Other accrued liabilities 552 Operating lease liabilities 471 Total current liabilities held for sale 7,379 Long-term operating lease liabilities 2,000 Total liabilities held for sale $ 9,379 Net assets held for sale $ 25,402 Assets held-for-sale comprise of the following as of December 31, 2023:"
    },
    {
      "status": "ADDED",
      "current_title": "(in thousands)",
      "prior_title": null,
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "(in thousands)",
      "prior_title": null,
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "Cash Equivalents",
      "prior_title": null,
      "current_body": "Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents."
    },
    {
      "status": "ADDED",
      "current_title": "(in thousands)",
      "prior_title": null,
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "(in thousands)",
      "prior_title": null,
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "(in thousands)",
      "prior_title": null,
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents"
    },
    {
      "status": "ADDED",
      "current_title": "Concentration of Credit Risk",
      "prior_title": null,
      "current_body": "Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Our cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Our fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. We place forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable 36 36 Table of Contents Table of Contents Table of Contents are limited due to the large number of geographically dispersed customers. We perform ongoing credit evaluations of our customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. As of December 31, 2023, a customer of our Semiconductor Test segment, Texas Instruments Inc., accounted for 18% of our accounts receivable balance. There were no customers who accounted for more than 10% of our accounts receivable balance as of December 31, 2022."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "We may incur higher tax rates than we expect and may have exposure to additional international tax liabilities and costs.",
      "prior_body": "We are subject to paying income taxes in the United States and other countries where we operate. Our effective tax rate is dependent on where our earnings are generated and the tax regulations and the interpretation and judgment of administrative tax or revenue authorities in the United States and other countries. We have pursued a global tax strategy that could be adversely affected by the mix of earnings and tax rates in the countries where we operate, changes to tax laws, tax regulations or an adverse tax ruling by administrative authorities. We are also subject to tax audits in the countries where we operate. Any material change in our tax liability resulting from changes in tax laws, tax regulations, administrative rulings or audits from an administrative tax or revenue authority could negatively affect our financial results. As a multinational corporation, we are subject to income taxes as well as non-income-based taxes, in both the United States and various foreign jurisdictions. In certain foreign jurisdictions, we qualify for tax incentives and tax holidays based on our ability to meet, on a continuing basis, various tests relating to our employment levels, research and development expenditures and other qualification requirements in a particular foreign jurisdiction. While we intend to operate in such a manner to maintain and maximize our tax incentives and tax holidays, no assurance can be given that we have so qualified or that we will so qualify for any particular year or jurisdiction. If we fail to qualify or fail to remain qualified for certain foreign tax incentives and tax holidays, we may be subject to further taxation or an increase in our effective tax rate which would adversely impact our financial results. In November 2020, we entered into an agreement with the Singapore Economic Development 16 Table of Contents Board which extended our Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025. The tax savings attributable to the Singapore tax holiday for the years ended December 31, 2022, 2021 and 2020 were $16.0 million or $0.09 per diluted share, $33.3 million or $0.18 per diluted share, and $29.9 million or $0.16 per diluted share, respectively. These tax savings may not be achievable in subsequent years due to changes in Singapore’s tax laws, issuance of new global minimum tax laws, or the expiration of the tax holiday. In addition, we may incur additional costs, including headcount expenses, in order to maintain or obtain a foreign tax incentive or tax holiday in a particular foreign jurisdiction. We have significant guarantees, indemnification, and customer confidentiality obligations. From time to time, we make guarantees to customers regarding the delivery, price and performance of our products and guarantee certain indebtedness, performance obligations or lease commitments of our subsidiary and affiliate companies. We also have agreed to provide indemnification to our officers, directors, employees and agents, to the extent permitted by law, arising from certain events or occurrences, while the officer, director, employee or agent, is or was serving at our request in such capacity. Additionally, we have confidentiality obligations to certain customers and if breached would require the payment of significant penalties. If we become liable under any of these obligations, it could materially and adversely affect our business, financial condition or operating results. For additional information see Note M: “Commitments and Contingencies—Guarantees and Indemnification Obligations” in Notes to Consolidated Financial Statements. We may discontinue or reduce our quarterly cash dividend or share repurchase program. In January 2014, our Board of Directors initiated a quarterly cash dividend. Since 2014, the Board of Directors has increased our quarterly cash dividend from $0.06 per share to $0.11 per share. Holders of our common stock are only entitled to receive dividends when and if they are declared by our Board of Directors. In January 2021, our Board of Directors approved a $2.0 billion share repurchase program. In 2022 and 2021, we repurchased $752.1 million, and $600.0 million, respectively of common stock. In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion share repurchase program. Under the share repurchase program, we may repurchase outstanding shares of our common stock from time to time in the open market and through privately negotiated transactions. Unless terminated earlier by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. Future cash dividends and share repurchases are subject to the discretion of our Board of Directors and will depend, among other things, upon our earnings, capital requirements and financial condition. While we have declared a quarterly cash dividend on our common stock and authorized a share repurchase program, we are not required to do either and may reduce or eliminate our cash dividend or share repurchase program in the future. The reduction or elimination of our cash dividend or our share repurchase program could adversely affect the market price of our common stock. We have incurred indebtedness and may incur additional indebtedness. On December 12, 2016, we completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost, after being partially offset by proceeds from the sale of the warrants, of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of our common stock. Holders of the Notes may require us to repurchase the Notes upon the occurrence of certain fundamental changes involving us or the holders may elect to convert into shares of our common stock. As of February 22, 2023, one hundred and twenty four holders had converted $424.9 million worth of notes. 17 Board which extended our Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025. The tax savings attributable to the Singapore tax holiday for the years ended December 31, 2022, 2021 and 2020 were $16.0 million or $0.09 per diluted share, $33.3 million or $0.18 per diluted share, and $29.9 million or $0.16 per diluted share, respectively. These tax savings may not be achievable in subsequent years due to changes in Singapore’s tax laws, issuance of new global minimum tax laws, or the expiration of the tax holiday. In addition, we may incur additional costs, including headcount expenses, in order to maintain or obtain a foreign tax incentive or tax holiday in a particular foreign jurisdiction. We have significant guarantees, indemnification, and customer confidentiality obligations. From time to time, we make guarantees to customers regarding the delivery, price and performance of our products and guarantee certain indebtedness, performance obligations or lease commitments of our subsidiary and affiliate companies. We also have agreed to provide indemnification to our officers, directors, employees and agents, to the extent permitted by law, arising from certain events or occurrences, while the officer, director, employee or agent, is or was serving at our request in such capacity. Additionally, we have confidentiality obligations to certain customers and if breached would require the payment of significant penalties. If we become liable under any of these obligations, it could materially and adversely affect our business, financial condition or operating results. For additional information see Note M: “Commitments and Contingencies—Guarantees and Indemnification Obligations” in Notes to Consolidated Financial Statements. We may discontinue or reduce our quarterly cash dividend or share repurchase program. In January 2014, our Board of Directors initiated a quarterly cash dividend. Since 2014, the Board of Directors has increased our quarterly cash dividend from $0.06 per share to $0.11 per share. Holders of our common stock are only entitled to receive dividends when and if they are declared by our Board of Directors. In January 2021, our Board of Directors approved a $2.0 billion share repurchase program. In 2022 and 2021, we repurchased $752.1 million, and $600.0 million, respectively of common stock. In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion share repurchase program. Under the share repurchase program, we may repurchase outstanding shares of our common stock from time to time in the open market and through privately negotiated transactions. Unless terminated earlier by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. Future cash dividends and share repurchases are subject to the discretion of our Board of Directors and will depend, among other things, upon our earnings, capital requirements and financial condition. While we have declared a quarterly cash dividend on our common stock and authorized a share repurchase program, we are not required to do either and may reduce or eliminate our cash dividend or share repurchase program in the future. The reduction or elimination of our cash dividend or our share repurchase program could adversely affect the market price of our common stock. We have incurred indebtedness and may incur additional indebtedness. On December 12, 2016, we completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost, after being partially offset by proceeds from the sale of the warrants, of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of our common stock. Holders of the Notes may require us to repurchase the Notes upon the occurrence of certain fundamental changes involving us or the holders may elect to convert into shares of our common stock. As of February 22, 2023, one hundred and twenty four holders had converted $424.9 million worth of notes. 17 Board which extended our Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025. The tax savings attributable to the Singapore tax holiday for the years ended December 31, 2022, 2021 and 2020 were $16.0 million or $0.09 per diluted share, $33.3 million or $0.18 per diluted share, and $29.9 million or $0.16 per diluted share, respectively. These tax savings may not be achievable in subsequent years due to changes in Singapore’s tax laws, issuance of new global minimum tax laws, or the expiration of the tax holiday. In addition, we may incur additional costs, including headcount expenses, in order to maintain or obtain a foreign tax incentive or tax holiday in a particular foreign jurisdiction."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "The novel coronavirus (COVID-19) pandemic has impacted our business and could materially adversely affect our results of operations, financial condition, liquidity, or cash flows.",
      "prior_body": "During the global COVID-19 pandemic, government authorities implemented numerous measures in an effort to contain the spread of the virus, such as travel bans and restrictions, limitations on gatherings or social distancing requirements, quarantines, shelter-in-place orders, vaccination and testing mandates, and business limitations and shutdowns. These measures impacted our day-to-day operations and disrupted our business, workforce and operations, as well as the operations of our customers, contract manufacturers and suppliers. The COVID-19 pandemic also significantly increased economic and demand uncertainty in our markets. The COVID-19 pandemic, and the numerous measures implemented in response, adversely impacted our results of operations, including increasing costs company-wide, but we cannot accurately estimate the full extent of the impact to our 2022, 2021 and 2020 financial results or to our future financial results. We will continue to monitor the COVID-19 pandemic. However, we are unable to accurately predict the future of COVID-19, which will depend on future developments that are highly uncertain and cannot be predicted with accuracy, including, but not limited to, any new surges or new strains or variants of the virus in areas where we do business, the availability and use of vaccinations and any further actions we may take as required by government authorities or that we determine are in the best interest of our employees, customers, contract manufacturers and suppliers. 23 Table of Contents Risks Related to Legal and Regulatory Compliance The implementation of tariffs on our products may have a material impact on our business. Our business operations and supply chain are global and may be disrupted by the implementation of tariffs. In 2018, the United States Trade Representative imposed a 25% tariff on many lists of products, including certain Teradyne products that are made in China and imported into the United States. We have implemented operational changes that mitigate the impact of the 25% tariff on the import of our impacted products into the United States. As a result, the existing tariff has not had a material adverse effect on our business, financial condition or results of operations. The implementation of additional tariffs by the United States could have a material adverse effect on our business, financial condition or results of operations. In addition to the actions taken by the United States, China has implemented retaliatory tariffs on products made in the United States and imported into China, including certain Teradyne products. We have implemented, if appropriate, operational changes that would mitigate the impact of the retaliatory tariffs. However, notwithstanding our efforts, the retaliatory tariffs or other trade restrictions implemented by China could disrupt our business operations, sales and supply chain and, therefore, have a material adverse effect on our business, financial condition or results of operations. Trade regulations and restrictions impact our ability to manufacture certain products and to sell products to and support certain customers, which may materially adversely affect our sales and results of operations. We are subject to U.S. laws and regulations that limit and restrict the export of some of our products and services and may restrict our transactions with certain customers, business partners and other persons. In certain circumstances, export control and economic sanctions regulations prohibit the export of certain products, services and technologies, and in other circumstances are required to obtain an export license before exporting the controlled item. We must also comply with export restrictions and laws imposed by other countries affecting trade and investments. We maintain an export compliance program but there are risks that the compliance controls could be circumvented, exposing us to legal liabilities. Compliance with these laws has not significantly limited our sales but could significantly limit them in the future. Changes in, and responses to, U.S. trade policy could reduce the competitiveness of our products and cause our sales to drop, which could have a material adverse effect on our business, financial condition or results of operations. The U.S. government from time to time has issued export restrictions that prohibit U.S. companies from exporting U.S. manufactured products, foreign manufactured products with more than 25% controlled U.S. content, as well as U.S. origin technology. For example, the U.S. Department of Commerce has restricted the access of U.S. origin technologies to certain Chinese semiconductor companies including YMTC and CXMT by adding those companies to the Entity List under U.S. Export Administration Regulations (“EAR”). The addition of certain of these companies to the entity list has had and will continue to have an adverse impact on our business with these customers. We will take appropriate actions, including filing for licenses with the U.S. Department of Commerce to attempt to minimize the impact of the restrictions on these companies. On May 16, 2019, Huawei and 68 of its affiliates, including HiSilicon, were added to the U.S. Department of Commerce Entity List under the EAR. This action by the U.S. Department of Commerce imposed new export licensing requirements on exports, re-exports, and in-country transfers of all U.S. regulated products, software and technology to the designated Huawei entities. On August 17, 2020, the U.S. Department of Commerce published final regulations expanding the scope of the U.S. EAR to include additional products that would become subject to export restrictions relating to Huawei entities including HiSilicon. These new regulations restrict the sale to Huawei and the designated Huawei entities of certain non-U.S. made items, such as semiconductor devices, manufactured for or sold to Huawei entities including HiSilicon under specific, detailed conditions set forth in the new regulations. These new regulations have impacted our sales to Huawei, HiSilicon and their suppliers. We are taking appropriate actions, including filing license applications and obtaining licenses 24 Risks Related to Legal and Regulatory Compliance The implementation of tariffs on our products may have a material impact on our business. Our business operations and supply chain are global and may be disrupted by the implementation of tariffs. In 2018, the United States Trade Representative imposed a 25% tariff on many lists of products, including certain Teradyne products that are made in China and imported into the United States. We have implemented operational changes that mitigate the impact of the 25% tariff on the import of our impacted products into the United States. As a result, the existing tariff has not had a material adverse effect on our business, financial condition or results of operations. The implementation of additional tariffs by the United States could have a material adverse effect on our business, financial condition or results of operations. In addition to the actions taken by the United States, China has implemented retaliatory tariffs on products made in the United States and imported into China, including certain Teradyne products. We have implemented, if appropriate, operational changes that would mitigate the impact of the retaliatory tariffs. However, notwithstanding our efforts, the retaliatory tariffs or other trade restrictions implemented by China could disrupt our business operations, sales and supply chain and, therefore, have a material adverse effect on our business, financial condition or results of operations. Trade regulations and restrictions impact our ability to manufacture certain products and to sell products to and support certain customers, which may materially adversely affect our sales and results of operations. We are subject to U.S. laws and regulations that limit and restrict the export of some of our products and services and may restrict our transactions with certain customers, business partners and other persons. In certain circumstances, export control and economic sanctions regulations prohibit the export of certain products, services and technologies, and in other circumstances are required to obtain an export license before exporting the controlled item. We must also comply with export restrictions and laws imposed by other countries affecting trade and investments. We maintain an export compliance program but there are risks that the compliance controls could be circumvented, exposing us to legal liabilities. Compliance with these laws has not significantly limited our sales but could significantly limit them in the future. Changes in, and responses to, U.S. trade policy could reduce the competitiveness of our products and cause our sales to drop, which could have a material adverse effect on our business, financial condition or results of operations. The U.S. government from time to time has issued export restrictions that prohibit U.S. companies from exporting U.S. manufactured products, foreign manufactured products with more than 25% controlled U.S. content, as well as U.S. origin technology. For example, the U.S. Department of Commerce has restricted the access of U.S. origin technologies to certain Chinese semiconductor companies including YMTC and CXMT by adding those companies to the Entity List under U.S. Export Administration Regulations (“EAR”). The addition of certain of these companies to the entity list has had and will continue to have an adverse impact on our business with these customers. We will take appropriate actions, including filing for licenses with the U.S. Department of Commerce to attempt to minimize the impact of the restrictions on these companies. On May 16, 2019, Huawei and 68 of its affiliates, including HiSilicon, were added to the U.S. Department of Commerce Entity List under the EAR. This action by the U.S. Department of Commerce imposed new export licensing requirements on exports, re-exports, and in-country transfers of all U.S. regulated products, software and technology to the designated Huawei entities. On August 17, 2020, the U.S. Department of Commerce published final regulations expanding the scope of the U.S. EAR to include additional products that would become subject to export restrictions relating to Huawei entities including HiSilicon. These new regulations restrict the sale to Huawei and the designated Huawei entities of certain non-U.S. made items, such as semiconductor devices, manufactured for or sold to Huawei entities including HiSilicon under specific, detailed conditions set forth in the new regulations. These new regulations have impacted our sales to Huawei, HiSilicon and their suppliers. We are taking appropriate actions, including filing license applications and obtaining licenses 24"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Unresolved Staff Comments",
      "prior_body": "Unresolved Staff Comments None. Properties Properties We conduct manufacturing, engineering, sales and marketing, service, corporate administration and other operations in various leased and owned facilities throughout the world. We own approximately 720,000 square feet of office space and lease over 1,500,000 square feet of office space. Our corporate headquarters is in North Reading, Massachusetts, in buildings that we own consisting of approximately 422,000 square feet. We believe our existing facilities and planned expansions noted below are adequate to meet our current and reasonably foreseeable requirements. We regularly evaluate our expected facility needs and periodically make adjustments based on these evaluations. In 2019, we purchased land in Denmark to construct a new building for our Robotics operations. The new building construction is expected to be completed by the first quarter of 2024."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Legal Proceedings",
      "prior_body": "Legal Proceedings We are subject to legal proceedings, claims and investigations that arise in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. We believe that we have meritorious defenses against all pending claims and intend to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, we believe the potential losses associated with all these actions are unlikely to have a material adverse effect on our results of operations, financial condition or cash flows."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Mine Safety Disclosure",
      "prior_body": "Mine Safety Disclosure Not Applicable. 27 Table of Contents PART II Item 5: Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the Nasdaq Global Select Market under the trading symbol “TER.” As of February 17, 2023, there were approximately 1,214 holders of record of shares of our common stock. See “Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for information on the frequency and amounts of our quarterly cash dividends, equity compensation plans and performance graph. The following table includes information with respect to repurchases we made of our common stock during the three months ended December 31, 2022 (in thousands except per share price): Period (a) TotalNumber ofShares(or Units)Purchased (b) AveragePrice Paid perShare (or Unit) (c) TotalNumber ofShares (or Units)Purchased asPart of PubliclyAnnouncedPlansor Programs (d) MaximumNumber(or ApproximateDollar Value) ofShares (or Units)that may Yet BePurchasedUnder the Plansor Programs October 3, 2022 – October 30, 2022 30 $ 69.41 30 $ 647,918,955 October 31, 2022 – November 27, 2022 1 82.03 — 647,918,955 November 28, 2022 – December 31, 2022 1 92.64 — 647,918,955 32 (1) $ 70.14 (1) 30 (1) Includes approximately two thousand shares at an average price of $83.49 withheld from employees for the payment of taxes. (2) In January 2021, the Board of Directors authorized the repurchase of up to $2.0 billion of common stock. In January 2023, the Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion of common stock. Unless terminated by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. We satisfy U.S. federal and state minimum withholding tax obligations due upon the vesting and the conversion of restricted stock units into shares of our common stock, by automatically withholding from the shares being issued, a number of shares with an aggregate fair market value on the date of such vesting and conversion that would satisfy the minimum withholding amount due. Item 6: (Reserved) Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview We are a leading global supplier of automated test equipment and robotics products. We design, develop, manufacture and sell automatic test systems and robotics products. Our automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Our Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and 28 PART II Item 5: Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the Nasdaq Global Select Market under the trading symbol “TER.” As of February 17, 2023, there were approximately 1,214 holders of record of shares of our common stock. See “Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for information on the frequency and amounts of our quarterly cash dividends, equity compensation plans and performance graph. The following table includes information with respect to repurchases we made of our common stock during the three months ended December 31, 2022 (in thousands except per share price): Period (a) TotalNumber ofShares(or Units)Purchased (b) AveragePrice Paid perShare (or Unit) (c) TotalNumber ofShares (or Units)Purchased asPart of PubliclyAnnouncedPlansor Programs (d) MaximumNumber(or ApproximateDollar Value) ofShares (or Units)that may Yet BePurchasedUnder the Plansor Programs October 3, 2022 – October 30, 2022 30 $ 69.41 30 $ 647,918,955 October 31, 2022 – November 27, 2022 1 82.03 — 647,918,955 November 28, 2022 – December 31, 2022 1 92.64 — 647,918,955 32 (1) $ 70.14 (1) 30 (1) Includes approximately two thousand shares at an average price of $83.49 withheld from employees for the payment of taxes. (2) In January 2021, the Board of Directors authorized the repurchase of up to $2.0 billion of common stock. In January 2023, the Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion of common stock. Unless terminated by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. We satisfy U.S. federal and state minimum withholding tax obligations due upon the vesting and the conversion of restricted stock units into shares of our common stock, by automatically withholding from the shares being issued, a number of shares with an aggregate fair market value on the date of such vesting and conversion that would satisfy the minimum withholding amount due. Item 6: (Reserved) Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview We are a leading global supplier of automated test equipment and robotics products. We design, develop, manufacture and sell automatic test systems and robotics products. Our automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Our Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and 28 PART II"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities",
      "prior_body": "Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the Nasdaq Global Select Market under the trading symbol “TER.” As of February 17, 2023, there were approximately 1,214 holders of record of shares of our common stock. See “Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for information on the frequency and amounts of our quarterly cash dividends, equity compensation plans and performance graph. The following table includes information with respect to repurchases we made of our common stock during the three months ended December 31, 2022 (in thousands except per share price): Period October 3, 2022 – October 30, 2022 October 31, 2022 – November 27, 2022 November 28, 2022 – December 31, 2022 Includes approximately two thousand shares at an average price of $83.49 withheld from employees for the payment of taxes. In January 2021, the Board of Directors authorized the repurchase of up to $2.0 billion of common stock. In January 2023, the Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion of common stock. Unless terminated by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. We satisfy U.S. federal and state minimum withholding tax obligations due upon the vesting and the conversion of restricted stock units into shares of our common stock, by automatically withholding from the shares being issued, a number of shares with an aggregate fair market value on the date of such vesting and conversion that would satisfy the minimum withholding amount due. (Reserved) (Reserved)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Impact of the COVID-19 Pandemic on our Business",
      "prior_body": "During the novel coronavirus (COVID-19) pandemic, government authorities implemented numerous measures in an effort to contain the spread of the virus, such as travel bans and restrictions, limitations on 29 Table of Contents gatherings or social distancing requirements, quarantines, shelter-in-place orders, vaccination and testing mandates, and business limitations and shutdowns. Additionally, we took proactive, aggressive action to protect the health and safety of our employees, customers, contract manufacturers and suppliers, and to comply with all government orders around the globe. The spread of COVID-19 caused us to modify our business practices, which included implementing social distancing protocols, limiting employee travel and requiring employees to work remotely. These measures impacted our day-to-day operations and disrupted our business, workforce and operations, as well as the operations of our customers, contract manufacturers and suppliers. Due to the COVID-19 pandemic, there has also been uncertainty and disruption in the global economy and our markets. We are not aware of any specific event or circumstance that would require an update to our estimates or judgments or a revision of the carrying value of our assets or liabilities as of February 22, 2023, the date of issuance of this Annual Report on Form 10-K. We believe the COVID-19 pandemic, and the numerous measures implemented by authorities in response, adversely impacted our results of operations, including by increasing costs, but we cannot accurately estimate the amount of the impact to our 2022 and 2021 financial results or to our future financial results. In addition, the pandemic has disrupted our contract manufacturers and suppliers, and has resulted in some instances in short-term cost increases to meet customer demand. While a continuation of the pandemic may further impact our workforce and operations, as well as those of our customers, contract manufacturers and suppliers, we expect that our manufacturing facilities will remain operational, at sufficient capacity to support production demand. We are monitoring our operations closely in an effort to avoid any potential productivity loss caused by responses to the COVID-19 pandemic. We experienced interruptions to our supply chain as a result of the COVID-19 pandemic. Our suppliers have faced and may continue to face difficulties maintaining operations in light of COVID-19 disruptions and government-ordered restrictions. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles caused by the pandemic. There is no assurance that these efforts will be successful. The COVID-19 pandemic may continue to disrupt our ability to obtain components required to manufacture our products, adversely affecting our operations and in some instances resulting in higher costs and delays, both for obtaining components and shipping finished goods to customers. We will continue to monitor the COVID-19 pandemic. We may take further actions as may be required or recommended by government authorities or that we determine are in the best interests of our employees, customers, contract manufacturers and suppliers. In these circumstances, there may be developments outside our control requiring us to adjust our operating plan. As a result, given the uncertain nature of this situation, we are not able to accurately predict the full extent of the impact of COVID-19 on our business, financial condition, results of operations, liquidity, or cash flows in the future. Supply Chain Constraints and Inflationary Pressures The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in 2022. As a result, we experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain of our products. In addition, in 2022, inflationary pressures contributed to increased costs for product components and wage inflation, which had minimal impact on our cost of products, gross margin and profit for the year. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles. In an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. However, if we are unable to secure manufacturing capacities from our current or new suppliers and contract manufacturers, on 30 gatherings or social distancing requirements, quarantines, shelter-in-place orders, vaccination and testing mandates, and business limitations and shutdowns. Additionally, we took proactive, aggressive action to protect the health and safety of our employees, customers, contract manufacturers and suppliers, and to comply with all government orders around the globe. The spread of COVID-19 caused us to modify our business practices, which included implementing social distancing protocols, limiting employee travel and requiring employees to work remotely. These measures impacted our day-to-day operations and disrupted our business, workforce and operations, as well as the operations of our customers, contract manufacturers and suppliers. Due to the COVID-19 pandemic, there has also been uncertainty and disruption in the global economy and our markets. We are not aware of any specific event or circumstance that would require an update to our estimates or judgments or a revision of the carrying value of our assets or liabilities as of February 22, 2023, the date of issuance of this Annual Report on Form 10-K. We believe the COVID-19 pandemic, and the numerous measures implemented by authorities in response, adversely impacted our results of operations, including by increasing costs, but we cannot accurately estimate the amount of the impact to our 2022 and 2021 financial results or to our future financial results. In addition, the pandemic has disrupted our contract manufacturers and suppliers, and has resulted in some instances in short-term cost increases to meet customer demand. While a continuation of the pandemic may further impact our workforce and operations, as well as those of our customers, contract manufacturers and suppliers, we expect that our manufacturing facilities will remain operational, at sufficient capacity to support production demand. We are monitoring our operations closely in an effort to avoid any potential productivity loss caused by responses to the COVID-19 pandemic. We experienced interruptions to our supply chain as a result of the COVID-19 pandemic. Our suppliers have faced and may continue to face difficulties maintaining operations in light of COVID-19 disruptions and government-ordered restrictions. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles caused by the pandemic. There is no assurance that these efforts will be successful. The COVID-19 pandemic may continue to disrupt our ability to obtain components required to manufacture our products, adversely affecting our operations and in some instances resulting in higher costs and delays, both for obtaining components and shipping finished goods to customers. We will continue to monitor the COVID-19 pandemic. We may take further actions as may be required or recommended by government authorities or that we determine are in the best interests of our employees, customers, contract manufacturers and suppliers. In these circumstances, there may be developments outside our control requiring us to adjust our operating plan. As a result, given the uncertain nature of this situation, we are not able to accurately predict the full extent of the impact of COVID-19 on our business, financial condition, results of operations, liquidity, or cash flows in the future. Supply Chain Constraints and Inflationary Pressures The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in 2022. As a result, we experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain of our products. In addition, in 2022, inflationary pressures contributed to increased costs for product components and wage inflation, which had minimal impact on our cost of products, gross margin and profit for the year. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles. In an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. However, if we are unable to secure manufacturing capacities from our current or new suppliers and contract manufacturers, on 30 gatherings or social distancing requirements, quarantines, shelter-in-place orders, vaccination and testing mandates, and business limitations and shutdowns. Additionally, we took proactive, aggressive action to protect the health and safety of our employees, customers, contract manufacturers and suppliers, and to comply with all government orders around the globe. The spread of COVID-19 caused us to modify our business practices, which included implementing social distancing protocols, limiting employee travel and requiring employees to work remotely. These measures impacted our day-to-day operations and disrupted our business, workforce and operations, as well as the operations of our customers, contract manufacturers and suppliers. Due to the COVID-19 pandemic, there has also been uncertainty and disruption in the global economy and our markets. We are not aware of any specific event or circumstance that would require an update to our estimates or judgments or a revision of the carrying value of our assets or liabilities as of February 22, 2023, the date of issuance of this Annual Report on Form 10-K. We believe the COVID-19 pandemic, and the numerous measures implemented by authorities in response, adversely impacted our results of operations, including by increasing costs, but we cannot accurately estimate the amount of the impact to our 2022 and 2021 financial results or to our future financial results. In addition, the pandemic has disrupted our contract manufacturers and suppliers, and has resulted in some instances in short-term cost increases to meet customer demand. While a continuation of the pandemic may further impact our workforce and operations, as well as those of our customers, contract manufacturers and suppliers, we expect that our manufacturing facilities will remain operational, at sufficient capacity to support production demand. We are monitoring our operations closely in an effort to avoid any potential productivity loss caused by responses to the COVID-19 pandemic. We experienced interruptions to our supply chain as a result of the COVID-19 pandemic. Our suppliers have faced and may continue to face difficulties maintaining operations in light of COVID-19 disruptions and government-ordered restrictions. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles caused by the pandemic. There is no assurance that these efforts will be successful. The COVID-19 pandemic may continue to disrupt our ability to obtain components required to manufacture our products, adversely affecting our operations and in some instances resulting in higher costs and delays, both for obtaining components and shipping finished goods to customers. We will continue to monitor the COVID-19 pandemic. We may take further actions as may be required or recommended by government authorities or that we determine are in the best interests of our employees, customers, contract manufacturers and suppliers. In these circumstances, there may be developments outside our control requiring us to adjust our operating plan. As a result, given the uncertain nature of this situation, we are not able to accurately predict the full extent of the impact of COVID-19 on our business, financial condition, results of operations, liquidity, or cash flows in the future."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Supply Chain Constraints and Inflationary Pressures",
      "prior_body": "The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in 2022. As a result, we experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain of our products. In addition, in 2022, inflationary pressures contributed to increased costs for product components and wage inflation, which had minimal impact on our cost of products, gross margin and profit for the year. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles. In an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. However, if we are unable to secure manufacturing capacities from our current or new suppliers and contract manufacturers, on 30 Table of Contents acceptable terms or at all, or successfully manage our purchase commitments and inventory for components, our ability to deliver our products to our customers in the desired quantities, at competitive prices or in a timely manner may be negatively impacted for 2023. Impact of Russia’s invasion of Ukraine on our Business Russia’s invasion of Ukraine, in February 2022, did not have a significant direct impact on our business as we have minimal business in Russia and Ukraine. However, following the invasion, the U.S. and other countries imposed significant sanctions against the Russian government and many Russian companies and individuals. Although we do not have significant operations in Russia, the sanctions and Russia’s response to the sanctions, have impacted our business in other countries and could have a negative impact on our future revenue and supply chain, either of which could adversely affect our business and financial results. In addition, the global economic uncertainty following the invasion, sanctions and Russia’s response to the sanctions could impact demand for our products. Impact of October 7, 2022 U.S. Department of Commerce Regulations on our Business On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. We continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We are also filing license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. At this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. We also have determined that the restrictions on the export of certain U.S. origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. We have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. We cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed. See Part II—Item 1A, “Risk Factors,” included herein for updates to our risk factors regarding risks associated with the COVID-19 pandemic, supply chain issues and international conflicts. Critical Accounting Policies and Estimates We have identified the policies and estimates discussed below as critical to understanding our business and our results of operations and financial condition. The impact and any associated risks related to these estimates on our business operations is discussed throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations where such policies affect our reported and expected financial results. For a full description of our accounting policies related to the below items refer to Note B. Accounting Policies, included in the Notes to Consolidated Financial Statements in this Annual Report. 31 acceptable terms or at all, or successfully manage our purchase commitments and inventory for components, our ability to deliver our products to our customers in the desired quantities, at competitive prices or in a timely manner may be negatively impacted for 2023. Impact of Russia’s invasion of Ukraine on our Business Russia’s invasion of Ukraine, in February 2022, did not have a significant direct impact on our business as we have minimal business in Russia and Ukraine. However, following the invasion, the U.S. and other countries imposed significant sanctions against the Russian government and many Russian companies and individuals. Although we do not have significant operations in Russia, the sanctions and Russia’s response to the sanctions, have impacted our business in other countries and could have a negative impact on our future revenue and supply chain, either of which could adversely affect our business and financial results. In addition, the global economic uncertainty following the invasion, sanctions and Russia’s response to the sanctions could impact demand for our products. Impact of October 7, 2022 U.S. Department of Commerce Regulations on our Business On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. We continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We are also filing license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. At this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. We also have determined that the restrictions on the export of certain U.S. origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. We have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. We cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed. See Part II—Item 1A, “Risk Factors,” included herein for updates to our risk factors regarding risks associated with the COVID-19 pandemic, supply chain issues and international conflicts. Critical Accounting Policies and Estimates We have identified the policies and estimates discussed below as critical to understanding our business and our results of operations and financial condition. The impact and any associated risks related to these estimates on our business operations is discussed throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations where such policies affect our reported and expected financial results. For a full description of our accounting policies related to the below items refer to Note B. Accounting Policies, included in the Notes to Consolidated Financial Statements in this Annual Report. 31 acceptable terms or at all, or successfully manage our purchase commitments and inventory for components, our ability to deliver our products to our customers in the desired quantities, at competitive prices or in a timely manner may be negatively impacted for 2023."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Impact of Russia’s invasion of Ukraine on our Business",
      "prior_body": "Russia’s invasion of Ukraine, in February 2022, did not have a significant direct impact on our business as we have minimal business in Russia and Ukraine. However, following the invasion, the U.S. and other countries imposed significant sanctions against the Russian government and many Russian companies and individuals. Although we do not have significant operations in Russia, the sanctions and Russia’s response to the sanctions, have impacted our business in other countries and could have a negative impact on our future revenue and supply chain, either of which could adversely affect our business and financial results. In addition, the global economic uncertainty following the invasion, sanctions and Russia’s response to the sanctions could impact demand for our products."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Restructuring and Other",
      "prior_body": "During the year ended December 31, 2022, we recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of an asset. During the year ended December 31, 2021, we recorded a charge of $12.0 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, $1.5 million of severance charges primarily in Robotics, $0.5 million of acquisition related compensation and expenses and $2.5 million for an increase in environmental and legal liabilities, offset by a $7.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability. 37 Table of Contents Interest and Other 2022 2021 2021-2022Change (in millions) Interest income $ (6.4 ) $ (2.6 ) $ (3.8 ) Interest expense 3.7 17.8 (14.1 ) Other (income) expense, net (5.8 ) 24.6 (30.4 ) Interest income increased $3.8 million due to higher interest rates. Interest expense decreased $14.1 million primarily due to the January 1, 2022 adoption of ASU 2020-06 which eliminated the amortization of the debt discount which was $10.3 million in 2021. Other (income) expense, net decreased by $30.4 million primarily due to $28.8 million losses on convertible debt conversions recognized in 2021 and an increase in pension actuarial gains, from $2.2 million gain in 2021 to $25.6 million gain in 2022, partially offset by changes in gains/losses on equity securities, from a $7.2 million gain in 2021 to a $9.0 million loss in 2022, and a $4 million increase in foreign exchange losses. Income (Loss) Before Income Taxes 2022 2021 2021-2022Change (in millions) Semiconductor Test $ 634.5 $ 977.0 $ (342.5 ) System Test 166.9 163.1 3.8 Wireless Test 66.8 83.5 (16.7 ) Robotics (16.2 ) (8.2 ) (8.0 ) Corporate and Eliminations (1) (11.6 ) (54.5 ) 42.9 $ 840.4 $ 1,161.0 $ (320.6 ) (1) Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, pension and postretirement plan actuarial gains (losses), legal and environmental fees, contingent consideration adjustments, acquisition related charges and compensation and loss on convertible debt conversions in 2021. The decrease in income before income taxes in Semiconductor Test was driven primarily by lower revenues in mobile and high performance compute processor applications, partially offset by lower variable compensation. The increase in income before income taxes in System Test was primarily due to higher sales in Defense/Aerospace and in Production Board Test, partially offset by a decline in Storage Test sales of system level testers. The decrease in income before income taxes in Wireless Test was driven primarily by lower sales in cellular test products partially offset by elevated sales in ultra-wide band test products. The decrease in income before income taxes in Robotics, was driven primarily by an increase in headcount and greater spending, partially offset by higher revenue for collaborative robotic arms and autonomous mobile robots. The change in income before income taxes in Corporate and Eliminations of $42.9 million was due primarily to $28.8 million of losses on convertible debt conversions recognized in 2021 and an increase of $23.4 million in pension actuarial gains in 2022. Income Taxes Income tax expense for 2022 and 2021, totaled $124.9 million and $146.4 million, respectively. The effective tax rate for 2022 and 2021 was 14.9% and 12.6%, respectively. The increase in the effective tax rate from 2021 to 2022 is primarily attributable to a shift in the geographic distribution of income, which increased the income subject to taxation in higher tax rate jurisdictions relative to lower tax rate jurisdictions, increases in expense from U.S. global low-taxed income and increases in expense 38 Interest and Other 2022 2021 2021-2022Change (in millions) Interest income $ (6.4 ) $ (2.6 ) $ (3.8 ) Interest expense 3.7 17.8 (14.1 ) Other (income) expense, net (5.8 ) 24.6 (30.4 ) Interest income increased $3.8 million due to higher interest rates. Interest expense decreased $14.1 million primarily due to the January 1, 2022 adoption of ASU 2020-06 which eliminated the amortization of the debt discount which was $10.3 million in 2021. Other (income) expense, net decreased by $30.4 million primarily due to $28.8 million losses on convertible debt conversions recognized in 2021 and an increase in pension actuarial gains, from $2.2 million gain in 2021 to $25.6 million gain in 2022, partially offset by changes in gains/losses on equity securities, from a $7.2 million gain in 2021 to a $9.0 million loss in 2022, and a $4 million increase in foreign exchange losses. Income (Loss) Before Income Taxes 2022 2021 2021-2022Change (in millions) Semiconductor Test $ 634.5 $ 977.0 $ (342.5 ) System Test 166.9 163.1 3.8 Wireless Test 66.8 83.5 (16.7 ) Robotics (16.2 ) (8.2 ) (8.0 ) Corporate and Eliminations (1) (11.6 ) (54.5 ) 42.9 $ 840.4 $ 1,161.0 $ (320.6 ) (1) Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, pension and postretirement plan actuarial gains (losses), legal and environmental fees, contingent consideration adjustments, acquisition related charges and compensation and loss on convertible debt conversions in 2021. The decrease in income before income taxes in Semiconductor Test was driven primarily by lower revenues in mobile and high performance compute processor applications, partially offset by lower variable compensation. The increase in income before income taxes in System Test was primarily due to higher sales in Defense/Aerospace and in Production Board Test, partially offset by a decline in Storage Test sales of system level testers. The decrease in income before income taxes in Wireless Test was driven primarily by lower sales in cellular test products partially offset by elevated sales in ultra-wide band test products. The decrease in income before income taxes in Robotics, was driven primarily by an increase in headcount and greater spending, partially offset by higher revenue for collaborative robotic arms and autonomous mobile robots. The change in income before income taxes in Corporate and Eliminations of $42.9 million was due primarily to $28.8 million of losses on convertible debt conversions recognized in 2021 and an increase of $23.4 million in pension actuarial gains in 2022. Income Taxes Income tax expense for 2022 and 2021, totaled $124.9 million and $146.4 million, respectively. The effective tax rate for 2022 and 2021 was 14.9% and 12.6%, respectively. The increase in the effective tax rate from 2021 to 2022 is primarily attributable to a shift in the geographic distribution of income, which increased the income subject to taxation in higher tax rate jurisdictions relative to lower tax rate jurisdictions, increases in expense from U.S. global low-taxed income and increases in expense 38"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Recently Issued Accounting Pronouncements",
      "prior_body": "For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Quantitative and Qualitative Disclosures about Market Risks",
      "prior_body": "Quantitative and Qualitative Disclosures about Market Risks"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Concentration of Credit Risk",
      "prior_body": "Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Our cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Our fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. We place forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically dispersed customers. We perform ongoing credit evaluations of our customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. There were no customers who accounted for more than 10% of our accounts receivable balance as of December 31, 2022 and December 31, 2021. In addition to market risks described in our Annual Report on Form 10-K, we have an equity price risk related to the fair value of our convertible senior unsecured notes issued in December 2016. In December 2016, Teradyne issued $460 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023. As of December 31, 2022, $50.2 million of principal remained outstanding and 43 Table of Contents the Notes had a fair value of $139.0 million. The table below provides a sensitivity analysis of hypothetical 10% changes of Teradyne’s stock price as of the end of the last quarter of 2022 and the estimated impact on the fair value of the Notes. The selected scenarios are not predictions of future events, but rather are intended to illustrate the effect such event may have on the fair value of the Notes. The fair value of the Notes is subject to equity price risk due to the convertible feature. The fair value of the Notes will generally increase as Teradyne’s common stock price increases and will generally decrease as the common stock price declines in value. The change in stock price affects the fair value of the Notes, but does not impact Teradyne’s financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally, we carry the Notes at face value less unamortized debt issuance costs on our balance sheet, and we present the fair value for required disclosure purposes only. In connection with the offering of the Notes we also sold warrants. The warrants will have a dilutive effect on our earnings per share to the extent that the average market price of our common stock for a given reporting period exceeds the applicable strike price of the warrants. Hypothetical Change in Teradyne Stock Price Fair Value Estimated change in fairvalue Hypotheticalpercentage increase(decrease) in fair value 10% Increase $ 152,962 $ 13,955 10.0 % No Change 139,007 — — 10% Decrease 125,068 (13,939 ) (10.0 ) See Note J: “Debt” for further information. Exchange Rate Risk Management We regularly enter into foreign currency forward contracts to hedge the value of our monetary assets and liabilities in Japanese Yen, British Pound, Korean Won, Taiwan Dollar, Singapore Dollar, Euro, Philippine Peso, Chinese Yuan, and Danish Krone. These foreign currency forward contracts have maturities of approximately one month. These contracts are used to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities. We do not engage in currency speculation. We performed a sensitivity analysis assuming a hypothetical 10% fluctuation in foreign exchange rates to the hedging contracts and the underlying exposures described above. As of December 31, 2022 and 2021, the analysis indicated that these hypothetical market movements would not have a material effect on our consolidated financial position, results of operations or cash flows. Interest Rate Risk Management We are exposed to potential losses due to changes in interest rates. Our interest rate exposure is primarily related to short-term and long-term marketable securities. In order to estimate the potential loss due to interest rate risk, a fluctuation in interest rates of 25 basis points was assumed. Market risk for the short and long-term marketable securities was estimated as the potential change in the fair value resulting from a hypothetical change in interest rates for securities contained in the investment portfolio. The potential change in the fair value from changes in interest rates is immaterial as of December 31, 2022 and 2021. 44 the Notes had a fair value of $139.0 million. The table below provides a sensitivity analysis of hypothetical 10% changes of Teradyne’s stock price as of the end of the last quarter of 2022 and the estimated impact on the fair value of the Notes. The selected scenarios are not predictions of future events, but rather are intended to illustrate the effect such event may have on the fair value of the Notes. The fair value of the Notes is subject to equity price risk due to the convertible feature. The fair value of the Notes will generally increase as Teradyne’s common stock price increases and will generally decrease as the common stock price declines in value. The change in stock price affects the fair value of the Notes, but does not impact Teradyne’s financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally, we carry the Notes at face value less unamortized debt issuance costs on our balance sheet, and we present the fair value for required disclosure purposes only. In connection with the offering of the Notes we also sold warrants. The warrants will have a dilutive effect on our earnings per share to the extent that the average market price of our common stock for a given reporting period exceeds the applicable strike price of the warrants. Hypothetical Change in Teradyne Stock Price Fair Value Estimated change in fairvalue Hypotheticalpercentage increase(decrease) in fair value 10% Increase $ 152,962 $ 13,955 10.0 % No Change 139,007 — — 10% Decrease 125,068 (13,939 ) (10.0 ) See Note J: “Debt” for further information. Exchange Rate Risk Management We regularly enter into foreign currency forward contracts to hedge the value of our monetary assets and liabilities in Japanese Yen, British Pound, Korean Won, Taiwan Dollar, Singapore Dollar, Euro, Philippine Peso, Chinese Yuan, and Danish Krone. These foreign currency forward contracts have maturities of approximately one month. These contracts are used to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities. We do not engage in currency speculation. We performed a sensitivity analysis assuming a hypothetical 10% fluctuation in foreign exchange rates to the hedging contracts and the underlying exposures described above. As of December 31, 2022 and 2021, the analysis indicated that these hypothetical market movements would not have a material effect on our consolidated financial position, results of operations or cash flows. Interest Rate Risk Management We are exposed to potential losses due to changes in interest rates. Our interest rate exposure is primarily related to short-term and long-term marketable securities. In order to estimate the potential loss due to interest rate risk, a fluctuation in interest rates of 25 basis points was assumed. Market risk for the short and long-term marketable securities was estimated as the potential change in the fair value resulting from a hypothetical change in interest rates for securities contained in the investment portfolio. The potential change in the fair value from changes in interest rates is immaterial as of December 31, 2022 and 2021. 44 the Notes had a fair value of $139.0 million. The table below provides a sensitivity analysis of hypothetical 10% changes of Teradyne’s stock price as of the end of the last quarter of 2022 and the estimated impact on the fair value of the Notes. The selected scenarios are not predictions of future events, but rather are intended to illustrate the effect such event may have on the fair value of the Notes. The fair value of the Notes is subject to equity price risk due to the convertible feature. The fair value of the Notes will generally increase as Teradyne’s common stock price increases and will generally decrease as the common stock price declines in value. The change in stock price affects the fair value of the Notes, but does not impact Teradyne’s financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally, we carry the Notes at face value less unamortized debt issuance costs on our balance sheet, and we present the fair value for required disclosure purposes only. In connection with the offering of the Notes we also sold warrants. The warrants will have a dilutive effect on our earnings per share to the extent that the average market price of our common stock for a given reporting period exceeds the applicable strike price of the warrants."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Hypothetical Change in Teradyne Stock Price",
      "prior_body": "10% Increase No Change 10% Decrease See Note J: “Debt” for further information."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Basis for Opinions",
      "prior_body": "Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an 45 Table of Contents understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Conversions of Senior Unsecured Notes As described in Notes B and J to the consolidated financial statements, during 2022, forty two holders of the Company’s convertible senior unsecured notes, originally issued on December 12, 2016, converted $66.8 million of the senior unsecured notes. The Company may satisfy its conversion obligation by paying cash for the principal amount of the senior unsecured notes and paying or delivering cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at management’s election for the amount in excess of principal. The principal considerations for our determination that performing procedures relating to the conversions of senior unsecured notes is a critical audit matter are (i) the high degree of audit effort in performing procedures and evaluating management’s calculation of the conversion transactions and the related settlement calculations and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s review of conversion transactions related to the Company’s senior unsecured notes, which included controls related to the conversion values and related settlement calculations. These procedures also included, among others, on a test basis (i) evaluating the appropriateness of the conversion 46 understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Conversions of Senior Unsecured Notes As described in Notes B and J to the consolidated financial statements, during 2022, forty two holders of the Company’s convertible senior unsecured notes, originally issued on December 12, 2016, converted $66.8 million of the senior unsecured notes. The Company may satisfy its conversion obligation by paying cash for the principal amount of the senior unsecured notes and paying or delivering cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at management’s election for the amount in excess of principal. The principal considerations for our determination that performing procedures relating to the conversions of senior unsecured notes is a critical audit matter are (i) the high degree of audit effort in performing procedures and evaluating management’s calculation of the conversion transactions and the related settlement calculations and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s review of conversion transactions related to the Company’s senior unsecured notes, which included controls related to the conversion values and related settlement calculations. These procedures also included, among others, on a test basis (i) evaluating the appropriateness of the conversion 46 understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting Definition and Limitations of Internal Control over Financial Reporting"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "TERADYNE, INC.",
      "prior_body": "TERADYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "CONSOLIDATED STATEMENTS OF OPERATIONS",
      "prior_body": "CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended December 31,"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Years Ended December 31,",
      "prior_body": "2022 2022 2021 2021 2020 2020 (in thousands, except per share amount)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "TERADYNE, INC.",
      "prior_body": "TERADYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME",
      "prior_body": "CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31,"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "TERADYNE, INC.",
      "prior_body": "TERADYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES",
      "prior_body": "CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Year Ended December 31, 2019",
      "prior_body": "Year Ended December 31, 2019 Net issuance of common stock under stock-based plans Net issuance of common stock under stock-based plans Stock-based compensation expense Stock-based compensation expense Repurchase of common stock Repurchase of common stock Cash dividends ($0.40 per share) Cash dividends ($0.40 per share) Convertible common shares Convertible common shares Net income Net income Other comprehensive income Other comprehensive income Year Ended December 31, 2020"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Year Ended December 31, 2020",
      "prior_body": "Year Ended December 31, 2020 Net issuance of common stock under stock-based plans Net issuance of common stock under stock-based plans Stock-based compensation expense Stock-based compensation expense Repurchase of common stock Repurchase of common stock Cash dividends ($0.40 per share) Cash dividends ($0.40 per share) Settlements of convertible notes Settlements of convertible notes Exercise of convertible notes hedge call options Exercise of convertible notes hedge call options Convertible common shares Convertible common shares Net income Net income Other comprehensive loss Other comprehensive loss Year Ended December 31, 2021"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "TERADYNE, INC.",
      "prior_body": "TERADYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "CONSOLIDATED STATEMENTS OF CASH FLOWS",
      "prior_body": "CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31,"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "TERADYNE, INC.",
      "prior_body": "TERADYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS",
      "prior_body": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A. A. THE COMPANY"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "ACCOUNTING POLICIES",
      "prior_body": "ACCOUNTING POLICIES The consolidated financial statements include the accounts of Teradyne and its wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated. Certain prior years’ amounts were reclassified to conform to the current year presentation. The consolidated financial statements include the accounts of Teradyne and its wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated. Certain prior years’ amounts were reclassified to conform to the current year presentation. Preparation of Financial Statements and Use of Estimates"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Inventories",
      "prior_body": "Inventories are stated at the lower of cost using a standard costing system which approximates cost based on a first-in, first-out basis or net realizable value. On a quarterly basis, we evaluate all inventories for net realizable value. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. Forecasted demand information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. The demand forecast is based on assumptions around the product life and customer and market forecasts."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Advertising Costs",
      "prior_body": "Advertising Costs Teradyne expenses all advertising costs as incurred. Advertising costs were $17.3 million, $13.4 million and $12.8 million in 2022, 2021 and 2020, respectively. Teradyne expenses all advertising costs as incurred. Advertising costs were $17.3 million, $13.4 million and $12.8 million in 2022, 2021 and 2020, respectively. Translation of Non-U.S. Currencies"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Comprehensive Income",
      "prior_body": "Comprehensive Income Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment. Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment. C. C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS",
      "prior_body": "RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. D. D. INVESTMENT IN OTHER COMPANY"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Disaggregation of Revenue",
      "prior_body": "Disaggregation of Revenue Disaggregation of Revenue The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Test"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "System-on- a-chip",
      "prior_body": "Memory Memory System System Test Test Universal Robots"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Mobile Industrial Robots",
      "prior_body": "Wireless Wireless Test Test Corporate Corporate and and Eliminations"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "For the Year Ended December 31, 2022 (1)",
      "prior_body": "For the Year Ended December 31, 2022 (1) Timing of Revenue Recognition"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Geographical Market",
      "prior_body": "Geographical Market Geographical Market Asia Pacific Asia Pacific Americas Americas Europe, Middle East and Africa Europe, Middle East and Africa Total Total Total For the Year Ended December 31, 2021 (1)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "For the Year Ended December 31, 2021 (1)",
      "prior_body": "For the Year Ended December 31, 2021 (1) Timing of Revenue Recognition"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Geographical Market",
      "prior_body": "Geographical Market Geographical Market Asia Pacific Asia Pacific Americas Americas Europe, Middle East and Africa Europe, Middle East and Africa Total Total Total For the Year Ended December 31, 2021 (1)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "For the Year Ended December 31, 2020 (1)",
      "prior_body": "For the Year Ended December 31, 2020 (1) Timing of Revenue Recognition"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Geographical Market",
      "prior_body": "Geographical Market Geographical Market Asia Pacific Asia Pacific Americas Americas Europe, Middle East and Africa Europe, Middle East and Africa Total Total Total For the Year Ended December 31, 2021 (1)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Unobservable",
      "prior_body": "Inputs Inputs (Level 3) (Level 3) Total Total (in thousands)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "December 31, 2021",
      "prior_body": "Quoted Quoted Prices Prices in Active in Active Markets for"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Unobservable",
      "prior_body": "Inputs Inputs (Level 3) (Level 3) Total Total (in thousands)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "December 31, 2021",
      "prior_body": "Quoted Quoted Prices Prices in Active in Active Markets for"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "December 31, 2021",
      "prior_body": "Quoted Quoted Prices Prices in Active in Active Markets for"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Concentration of Credit Risk",
      "prior_body": "Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Our cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Our fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. We place forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically dispersed customers. We perform ongoing credit evaluations of our customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. There were no customers who accounted for more than 10% of our accounts receivable balance as of December 31, 2022 and December 31, 2021. In addition to market risks described in our Annual Report on Form 10-K, we have an equity price risk related to the fair value of our convertible senior unsecured notes issued in December 2016. In December 2016, Teradyne issued $460 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023. As of December 31, 2022, $50.2 million of principal remained outstanding and 43 Table of Contents the Notes had a fair value of $139.0 million. The table below provides a sensitivity analysis of hypothetical 10% changes of Teradyne’s stock price as of the end of the last quarter of 2022 and the estimated impact on the fair value of the Notes. The selected scenarios are not predictions of future events, but rather are intended to illustrate the effect such event may have on the fair value of the Notes. The fair value of the Notes is subject to equity price risk due to the convertible feature. The fair value of the Notes will generally increase as Teradyne’s common stock price increases and will generally decrease as the common stock price declines in value. The change in stock price affects the fair value of the Notes, but does not impact Teradyne’s financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally, we carry the Notes at face value less unamortized debt issuance costs on our balance sheet, and we present the fair value for required disclosure purposes only. In connection with the offering of the Notes we also sold warrants. The warrants will have a dilutive effect on our earnings per share to the extent that the average market price of our common stock for a given reporting period exceeds the applicable strike price of the warrants. Hypothetical Change in Teradyne Stock Price Fair Value Estimated change in fairvalue Hypotheticalpercentage increase(decrease) in fair value 10% Increase $ 152,962 $ 13,955 10.0 % No Change 139,007 — — 10% Decrease 125,068 (13,939 ) (10.0 ) See Note J: “Debt” for further information. Exchange Rate Risk Management We regularly enter into foreign currency forward contracts to hedge the value of our monetary assets and liabilities in Japanese Yen, British Pound, Korean Won, Taiwan Dollar, Singapore Dollar, Euro, Philippine Peso, Chinese Yuan, and Danish Krone. These foreign currency forward contracts have maturities of approximately one month. These contracts are used to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities. We do not engage in currency speculation. We performed a sensitivity analysis assuming a hypothetical 10% fluctuation in foreign exchange rates to the hedging contracts and the underlying exposures described above. As of December 31, 2022 and 2021, the analysis indicated that these hypothetical market movements would not have a material effect on our consolidated financial position, results of operations or cash flows. Interest Rate Risk Management We are exposed to potential losses due to changes in interest rates. Our interest rate exposure is primarily related to short-term and long-term marketable securities. In order to estimate the potential loss due to interest rate risk, a fluctuation in interest rates of 25 basis points was assumed. Market risk for the short and long-term marketable securities was estimated as the potential change in the fair value resulting from a hypothetical change in interest rates for securities contained in the investment portfolio. The potential change in the fair value from changes in interest rates is immaterial as of December 31, 2022 and 2021. 44 the Notes had a fair value of $139.0 million. The table below provides a sensitivity analysis of hypothetical 10% changes of Teradyne’s stock price as of the end of the last quarter of 2022 and the estimated impact on the fair value of the Notes. The selected scenarios are not predictions of future events, but rather are intended to illustrate the effect such event may have on the fair value of the Notes. The fair value of the Notes is subject to equity price risk due to the convertible feature. The fair value of the Notes will generally increase as Teradyne’s common stock price increases and will generally decrease as the common stock price declines in value. The change in stock price affects the fair value of the Notes, but does not impact Teradyne’s financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally, we carry the Notes at face value less unamortized debt issuance costs on our balance sheet, and we present the fair value for required disclosure purposes only. In connection with the offering of the Notes we also sold warrants. The warrants will have a dilutive effect on our earnings per share to the extent that the average market price of our common stock for a given reporting period exceeds the applicable strike price of the warrants. Hypothetical Change in Teradyne Stock Price Fair Value Estimated change in fairvalue Hypotheticalpercentage increase(decrease) in fair value 10% Increase $ 152,962 $ 13,955 10.0 % No Change 139,007 — — 10% Decrease 125,068 (13,939 ) (10.0 ) See Note J: “Debt” for further information. Exchange Rate Risk Management We regularly enter into foreign currency forward contracts to hedge the value of our monetary assets and liabilities in Japanese Yen, British Pound, Korean Won, Taiwan Dollar, Singapore Dollar, Euro, Philippine Peso, Chinese Yuan, and Danish Krone. These foreign currency forward contracts have maturities of approximately one month. These contracts are used to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities. We do not engage in currency speculation. We performed a sensitivity analysis assuming a hypothetical 10% fluctuation in foreign exchange rates to the hedging contracts and the underlying exposures described above. As of December 31, 2022 and 2021, the analysis indicated that these hypothetical market movements would not have a material effect on our consolidated financial position, results of operations or cash flows. Interest Rate Risk Management We are exposed to potential losses due to changes in interest rates. Our interest rate exposure is primarily related to short-term and long-term marketable securities. In order to estimate the potential loss due to interest rate risk, a fluctuation in interest rates of 25 basis points was assumed. Market risk for the short and long-term marketable securities was estimated as the potential change in the fair value resulting from a hypothetical change in interest rates for securities contained in the investment portfolio. The potential change in the fair value from changes in interest rates is immaterial as of December 31, 2022 and 2021. 44 the Notes had a fair value of $139.0 million. The table below provides a sensitivity analysis of hypothetical 10% changes of Teradyne’s stock price as of the end of the last quarter of 2022 and the estimated impact on the fair value of the Notes. The selected scenarios are not predictions of future events, but rather are intended to illustrate the effect such event may have on the fair value of the Notes. The fair value of the Notes is subject to equity price risk due to the convertible feature. The fair value of the Notes will generally increase as Teradyne’s common stock price increases and will generally decrease as the common stock price declines in value. The change in stock price affects the fair value of the Notes, but does not impact Teradyne’s financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally, we carry the Notes at face value less unamortized debt issuance costs on our balance sheet, and we present the fair value for required disclosure purposes only. In connection with the offering of the Notes we also sold warrants. The warrants will have a dilutive effect on our earnings per share to the extent that the average market price of our common stock for a given reporting period exceeds the applicable strike price of the warrants."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Convertible Senior Notes",
      "prior_body": "Convertible Senior Notes On December 12, 2016, Teradyne completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of Teradyne’s common stock under its existing stock repurchase program from purchasers of the Notes in privately negotiated transactions effected through one of the initial purchasers or its affiliates conducted concurrently with the pricing of the Note offering. The Notes will mature on December 15, 2023, unless earlier repurchased or converted. The Notes bear interest at a rate of 1.25% per year payable semiannually in arrears on June 15 and December 15 of each year. The Notes will be convertible at the option of the noteholders at any time prior to the close of business on the business day immediately preceding September 15, 2023, only under the following circumstances: (1) during any calendar quarter beginning after March 31, 2017 (and only during such calendar quarter), if the closing sale price of Teradyne’s common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately On December 12, 2016, Teradyne completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of Teradyne’s common stock under its existing stock repurchase program from purchasers of the Notes in privately negotiated transactions effected through one of the initial purchasers or its affiliates conducted concurrently with the pricing of the Note offering. The Notes will mature on December 15, 2023, unless earlier repurchased or converted. The Notes bear interest at a rate of 1.25% per year payable semiannually in arrears on June 15 and December 15 of each year. The Notes will be convertible at the option of the noteholders at any time prior to the close of business on the business day immediately preceding September 15, 2023, only under the following circumstances: (1) during any calendar quarter beginning after March 31, 2017 (and only during such calendar quarter), if the closing sale price of Teradyne’s common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately 72 72 2 Table of Contents preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of Teradyne’s common stock and the conversion rate on each such trading day; and (3) upon the occurrence of specified corporate events. On or after September 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its future conversion obligation by paying cash for the principal amount of the Notes and paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne’s election for the amount in excess of principal. On November 4, 2021, Teradyne made an irrevocable election under the Indenture to require the principal portion of the remaining Notes to be settled in cash. As of December 31, 2022, the conversion price was approximately $31.46 per share of Teradyne’s common stock. The conversion rate is subject to adjustment under certain circumstances.During 2022, forty-two debt holders elected to convert $66.8 million of debt principal. The conversion of the debt was settled in cash for principal amount and in shares for the excess of conversion value over principal amount. The 1.5 million shares issued to the debt holders were received from exercising the convertible notes hedge call options. During 2021, sixty-four holders converted $343.0 million resulting in a loss of $28.8 million recorded to other (income) expense on the consolidated statement of operations. The amount of the loss was determined using the conversion value of the conversion transactions based on the fair value of debt immediately prior to conversion using an updated remaining expected life of the debt instrument and an updated borrowing rate for a similar debt instrument that does not have an associated convertible feature. As of February 22, 2023, one hundred and twenty-four holders had exercised the option to convert $424.9 million worth of notes. Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.46. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 1.6 million shares of Teradyne’s common stock. Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled (or, at its election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of common stock. As of December 31, 2022, the strike price of the warrants was approximately $39.48 per share. The strike price is subject to adjustment under certain circumstances. The Warrant Transactions could have a dilutive effect to Teradyne’s common stock to the extent that the market price per share of Teradyne’s common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne’s common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne’s common stock exceeds the applicable strike price of the warrant. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent 73 preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of Teradyne’s common stock and the conversion rate on each such trading day; and (3) upon the occurrence of specified corporate events. On or after September 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its future conversion obligation by paying cash for the principal amount of the Notes and paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne’s election for the amount in excess of principal. On November 4, 2021, Teradyne made an irrevocable election under the Indenture to require the principal portion of the remaining Notes to be settled in cash. As of December 31, 2022, the conversion price was approximately $31.46 per share of Teradyne’s common stock. The conversion rate is subject to adjustment under certain circumstances.During 2022, forty-two debt holders elected to convert $66.8 million of debt principal. The conversion of the debt was settled in cash for principal amount and in shares for the excess of conversion value over principal amount. The 1.5 million shares issued to the debt holders were received from exercising the convertible notes hedge call options. During 2021, sixty-four holders converted $343.0 million resulting in a loss of $28.8 million recorded to other (income) expense on the consolidated statement of operations. The amount of the loss was determined using the conversion value of the conversion transactions based on the fair value of debt immediately prior to conversion using an updated remaining expected life of the debt instrument and an updated borrowing rate for a similar debt instrument that does not have an associated convertible feature. As of February 22, 2023, one hundred and twenty-four holders had exercised the option to convert $424.9 million worth of notes. Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.46. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 1.6 million shares of Teradyne’s common stock. Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled (or, at its election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of common stock. As of December 31, 2022, the strike price of the warrants was approximately $39.48 per share. The strike price is subject to adjustment under certain circumstances. The Warrant Transactions could have a dilutive effect to Teradyne’s common stock to the extent that the market price per share of Teradyne’s common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne’s common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne’s common stock exceeds the applicable strike price of the warrant. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent 73 preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of Teradyne’s common stock and the conversion rate on each such trading day; and (3) upon the occurrence of specified corporate events. On or after September 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its future conversion obligation by paying cash for the principal amount of the Notes and paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne’s election for the amount in excess of principal. On November 4, 2021, Teradyne made an irrevocable election under the Indenture to require the principal portion of the remaining Notes to be settled in cash. As of December 31, 2022, the conversion price was approximately $31.46 per share of Teradyne’s common stock. The conversion rate is subject to adjustment under certain circumstances. preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; during the business day period after any consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $ principal amount of Notes for each trading day of the measurement period was less than % of the product of the closing sale price of Teradyne’s common stock and the conversion rate on each such trading day; and upon the occurrence of specified corporate events. On or after until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its future conversion obligation by paying cash for the principal amount of the Notes and paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne’s election for the amount in excess of principal. On November , , Teradyne made an irrevocable election under the Indenture to require the principal portion of the remaining Notes to be settled in cash. As of December , , the conversion price was approximately $ per share of Teradyne’s common stock. The conversion rate is subject to adjustment under certain circumstances. During 2022, forty-two debt holders elected to convert $66.8 million of debt principal. The conversion of the debt was settled in cash for principal amount and in shares for the excess of conversion value over principal amount. The 1.5 million shares issued to the debt holders were received from exercising the convertible notes hedge call options. During 2022, forty-two debt holders elected to convert $66.8 million of debt principal. The conversion of the debt was settled in cash for principal amount and in shares for the excess of conversion value over principal amount. The 1.5 million shares issued to the debt holders were received from exercising the convertible notes hedge call options. - During 2021, sixty-four holders converted $343.0 million resulting in a loss of $28.8 million recorded to other (income) expense on the consolidated statement of operations. The amount of the loss was determined using the conversion value of the conversion transactions based on the fair value of debt immediately prior to conversion using an updated remaining expected life of the debt instrument and an updated borrowing rate for a similar debt instrument that does not have an associated convertible feature. During 2021, sixty-four holders converted $343.0 million resulting in a loss of $28.8 million recorded to other (income) expense on the consolidated statement of operations. The amount of the loss was determined using the conversion value of the conversion transactions based on the fair value of debt immediately prior to conversion using an updated remaining expected life of the debt instrument and an updated borrowing rate for a similar debt instrument that does not have an associated convertible feature. - As of February 22, 2023, one hundred and twenty-four holders had exercised the option to convert $424.9 million worth of notes. As of February 22, 2023, one hundred and twenty-four holders had exercised the option to convert $424.9 million worth of notes. - Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.46. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 1.6 million shares of Teradyne’s common stock. Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.46. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 1.6 million shares of Teradyne’s common stock. Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled (or, at its election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of common stock. As of December 31, 2022, the strike price of the warrants was approximately $39.48 per share. The strike price is subject to adjustment under certain circumstances. The Warrant Transactions could have a dilutive effect to Teradyne’s common stock to the extent that the market price per share of Teradyne’s common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled (or, at its election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of common stock. As of December 31, 2022, the strike price of the warrants was approximately $39.48 per share. The strike price is subject to adjustment under certain circumstances. The Warrant Transactions could have a dilutive effect to Teradyne’s common stock to the extent that the market price per share of Teradyne’s common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne’s common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne’s common stock exceeds the applicable strike price of the warrant. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne’s common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne’s common stock exceeds the applicable strike price of the warrant. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent 73 73 3 Table of Contents with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. Originally, Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represented a discount to the debt and was amortized to interest expense using the effective interest method through December 2023. Effective January 1, 2022, Teradyne adopted ASC 2020-06 using the modified retrospective method of transition and accounts for the debt as a single liability measured at its amortized cost. As a result of the adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. Debt issuance fees of approximately $0.1 million at December 31, 2022, are being amortized to interest expense using the effective interest method over the seven-year term of the Notes. The below tables represent the key components of Teradyne’s convertible senior notes: December 31, 2022 December 31, 2021 (in thousands) Debt principal $ 50,228 $ 116,980 Unamortized debt issuance fees (1) 113 8,554 Net carrying amount of convertible debt $ 50,115 $ 108,426 Reported as follows: December 31, 2022 December 31, 2021 (in thousands) Current debt $ 50,115 $ 19,182 Long-term debt — 89,244 Net carrying amount of convertible debt $ 50,115 $ 108,426 For the Years Ended December 31, 2022 December 31, 2021 (in thousands) Contractual interest expense on the coupon $ 732 $ 3,009 Amortization of the issuance fees recognized as interest expense (2) 209 11,019 Total interest expense on the convertible debt $ 941 $ 14,028 (1) Unamortized debt issuance fees as of December 31, 2021 include unamortized debt discount of $8.0 million, which was eliminated with the adoption of ASU 2020-06 on January 1, 2022. (2) For the year ended December 31, 2021 includes the amortization of debt discount component, which was eliminated with the adoption of ASU 2020-06 on January 1, 2022. 74 with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. Originally, Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represented a discount to the debt and was amortized to interest expense using the effective interest method through December 2023. Effective January 1, 2022, Teradyne adopted ASC 2020-06 using the modified retrospective method of transition and accounts for the debt as a single liability measured at its amortized cost. As a result of the adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. Debt issuance fees of approximately $0.1 million at December 31, 2022, are being amortized to interest expense using the effective interest method over the seven-year term of the Notes. The below tables represent the key components of Teradyne’s convertible senior notes: December 31, 2022 December 31, 2021 (in thousands) Debt principal $ 50,228 $ 116,980 Unamortized debt issuance fees (1) 113 8,554 Net carrying amount of convertible debt $ 50,115 $ 108,426 Reported as follows: December 31, 2022 December 31, 2021 (in thousands) Current debt $ 50,115 $ 19,182 Long-term debt — 89,244 Net carrying amount of convertible debt $ 50,115 $ 108,426 For the Years Ended December 31, 2022 December 31, 2021 (in thousands) Contractual interest expense on the coupon $ 732 $ 3,009 Amortization of the issuance fees recognized as interest expense (2) 209 11,019 Total interest expense on the convertible debt $ 941 $ 14,028 (1) Unamortized debt issuance fees as of December 31, 2021 include unamortized debt discount of $8.0 million, which was eliminated with the adoption of ASU 2020-06 on January 1, 2022. (2) For the year ended December 31, 2021 includes the amortization of debt discount component, which was eliminated with the adoption of ASU 2020-06 on January 1, 2022. 74 with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. Originally, Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represented a discount to the debt and was amortized to interest expense using the effective interest method through December 2023. Effective January 1, 2022, Teradyne adopted ASC 2020-06 using the modified retrospective method of transition and accounts for the debt as a single liability measured at its amortized cost. As a result of the adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. Originally, Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represented a discount to the debt and was amortized to interest expense using the effective interest method through December 2023. Effective January 1, 2022, Teradyne adopted ASC 2020-06 using the modified retrospective method of transition and accounts for the debt as a single liability measured at its amortized cost. As a result of the adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. Debt issuance fees of approximately $0.1 million at December 31, 2022, are being amortized to interest expense using the effective interest method over the seven-year term of the Notes. Debt issuance fees of approximately $0.1 million at December 31, 2022, are being amortized to interest expense using the effective interest method over the seven-year term of the Notes. The below tables represent the key components of Teradyne’s convertible senior notes: The below tables represent the key components of Teradyne’s convertible senior notes: The below tables represent the key components of Teradyne’s convertible senior notes: December 31, 2022"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Revolving Credit Facility",
      "prior_body": "Revolving Credit Facility On May 1, 2020, Teradyne entered into a credit agreement (the “Credit Agreement”) with Truist Bank, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provides for a three-year, senior secured revolving credit facility of $400.0 million (the “Credit Facility”). On May 1, 2020, Teradyne entered into a credit agreement (the “Credit Agreement”) with Truist Bank, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provides for a three-year, senior secured revolving credit facility of $400.0 million (the “Credit Facility”). On December 10, 2021, the Credit Agreement was amended to extend maturity date of the Credit Facility to December 10, 2026. On October 5, 2022, the Credit Agreement was amended to increase the amount of the Credit Facility to $750.0 million from $400.0 million. On December 10, 2021, the Credit Agreement was amended to extend maturity date of the Credit Facility to December 10, 2026. On October 5, 2022, the Credit Agreement was amended to increase the amount of the Credit Facility to $750.0 million from $400.0 million. The Credit Agreement provides that, subject to customary conditions, Teradyne may seek to obtain from existing or new lenders the available incremental amount under the Credit Facility, not to exceed the greater of $200.0 million or 15% of consolidated EBIDTA. The interest rate applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.00% to 0.75% per annum or SOFR plus a margin ranging from 1.10% to 1.85% per annum, based on the consolidated leverage ratio of Teradyne. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.15% to 0.25% per annum, based on the then applicable consolidated leverage ratio. The Credit Agreement provides that, subject to customary conditions, Teradyne may seek to obtain from existing or new lenders the available incremental amount under the Credit Facility, not to exceed the greater of $200.0 million or 15% of consolidated EBIDTA. The interest rate applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.00% to 0.75% per annum or SOFR plus a margin ranging from 1.10% to 1.85% per annum, based on the consolidated leverage ratio of Teradyne. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.15% to 0.25% per annum, based on the then applicable consolidated leverage ratio. Teradyne is not required to repay any loans under the Credit Facility prior to maturity, subject to certain customary exceptions. Teradyne is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, other than customary SOFR breakage costs. Teradyne is not required to repay any loans under the Credit Facility prior to maturity, subject to certain customary exceptions. Teradyne is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, other than customary SOFR breakage costs. The Credit Agreement contains customary events of default, representations, warranties and affirmative and negative covenants that, among other things, limit Teradyne’s ability to sell assets, grant liens on assets, incur other secured indebtedness and make certain investments and restricted payments, all subject to exceptions set forth in the Credit Agreement. The Credit Agreement also requires Teradyne to satisfy two financial ratios measured as of the end of each fiscal quarter; a consolidated leverage ratio and an interest coverage ratio. The Credit Agreement contains customary events of default, representations, warranties and affirmative and negative covenants that, among other things, limit Teradyne’s ability to sell assets, grant liens on assets, incur other secured indebtedness and make certain investments and restricted payments, all subject to exceptions set forth in the Credit Agreement. The Credit Agreement also requires Teradyne to satisfy two financial ratios measured as of the end of each fiscal quarter; a consolidated leverage ratio and an interest coverage ratio. The Credit Facility is guaranteed by certain of Teradyne’s domestic subsidiaries and collateralized by assets of Teradyne and such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. The Credit Facility is guaranteed by certain of Teradyne’s domestic subsidiaries and collateralized by assets of Teradyne and such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. As of February 22, 2023, the Credit Agreement was undrawn and Teradyne was in compliance with all covenants under the Credit Agreement. As of February 22, 2023, the Credit Agreement was undrawn and Teradyne was in compliance with all covenants under the Credit Agreement. 75 75 5 Table of Contents K. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Unrealized Losses on Cash Flow Hedges Retirement Plans Prior Service Credit Total (in thousands) Balance at December 31, 2020, net of tax of $0, $1,910, $0, $(1,126), respectively $ 25,389 $ 6,954 $ — $ 1,173 $ 33,516 Other comprehensive loss before reclassifications, net of tax of $0, $(578), $0, $0, respectively (36,207 ) (2,255 ) — — (38,462 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(277), $0, $(2), respectively — (995 ) — (7 ) (1,002 ) Net current period other comprehensive loss, net of tax of $0, $(855), $0, $(2), respectively (36,207 ) (3,250 ) — (7 ) (39,464 ) Balance at December 31, 2021, net of tax of $0, $1,055, $0, $(1,128), respectively $ (10,818 ) $ 3,704 $ — $ 1,166 $ (5,948 ) Other comprehensive loss before reclassifications, net of tax of $0, $(3,388), $(708), $0, respectively (29,031 ) (12,666 ) (2,517 ) — (44,214 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $0, $25, $0, $(2), respectively — 301 — (7 ) 294 Net current period other comprehensive loss, net of tax of $0, $(3,363), $(708), $(2), respectively (29,031 ) (12,365 ) (2,517 ) (7 ) (43,920 ) Balance at December 31, 2022, net of tax of $0, $(2,308), $(708), $(1,130), respectively $ (39,849 ) $ (8,661 ) $ (2,517 ) $ 1,159 $ (49,868 ) 76 K. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Unrealized Losses on Cash Flow Hedges Retirement Plans Prior Service Credit Total (in thousands) Balance at December 31, 2020, net of tax of $0, $1,910, $0, $(1,126), respectively $ 25,389 $ 6,954 $ — $ 1,173 $ 33,516 Other comprehensive loss before reclassifications, net of tax of $0, $(578), $0, $0, respectively (36,207 ) (2,255 ) — — (38,462 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(277), $0, $(2), respectively — (995 ) — (7 ) (1,002 ) Net current period other comprehensive loss, net of tax of $0, $(855), $0, $(2), respectively (36,207 ) (3,250 ) — (7 ) (39,464 ) Balance at December 31, 2021, net of tax of $0, $1,055, $0, $(1,128), respectively $ (10,818 ) $ 3,704 $ — $ 1,166 $ (5,948 ) Other comprehensive loss before reclassifications, net of tax of $0, $(3,388), $(708), $0, respectively (29,031 ) (12,666 ) (2,517 ) — (44,214 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $0, $25, $0, $(2), respectively — 301 — (7 ) 294 Net current period other comprehensive loss, net of tax of $0, $(3,363), $(708), $(2), respectively (29,031 ) (12,365 ) (2,517 ) (7 ) (43,920 ) Balance at December 31, 2022, net of tax of $0, $(2,308), $(708), $(1,130), respectively $ (39,849 ) $ (8,661 ) $ (2,517 ) $ 1,159 $ (49,868 ) 76 K. K. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)",
      "prior_body": "ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following: Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following: Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following: Foreign Foreign Currency Currency Translation"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Plans Prior",
      "prior_body": "Service Service Credit Credit Total Total (in thousands)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Details about Accumulated",
      "prior_body": "Details about Accumulated Other Comprehensive Income (Loss)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Other Comprehensive Income (Loss)",
      "prior_body": "Other Comprehensive Income (Loss) (Loss) Components"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "GOODWILL AND INTANGIBLE ASSETS",
      "prior_body": "GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill Goodwill Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “Intangibles—Goodwill and Other,” on December 31 of each fiscal year unless interim indicators of impairment exist. Goodwill is considered to be impaired when the net book value of a reporting unit exceeds its estimated fair value. Intangibles—Goodwill and Other, Intangibles—Goodwill and Other, Teradyne has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying amounts, the quantitative goodwill impairment test is not required. In performing the quantitative goodwill impairment test, Teradyne determines the fair value of a reporting unit using the results derived from an income approach and a market approach, weighting the fair value determined under each approach to determine an estimated fair value for a reporting unit. The income approach is estimated through the discounted cash flows (“DCF”) analysis. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount rates, perpetual growth rates, and the amount and timing of expected future cash flows. Discount rates are based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity, plus a risk premium. The WACC used to test goodwill is derived from a group of comparable companies. The cash flows employed in the DCF analysis are derived from internal forecasts and external market forecasts. The market approach estimates the fair value of the reporting unit by utilizing the market comparable method which is based on revenue and earnings multiples from comparable companies. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, then the goodwill is written down by the amount that carrying value exceeds the fair value of the reporting unit, but not below zero. Teradyne has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying amounts, the quantitative goodwill impairment test is not required. In performing the quantitative goodwill impairment test, Teradyne determines the fair value of a reporting unit using the results derived from an income approach and a market approach, weighting the fair value determined under each approach to determine an estimated fair value for a reporting unit. The income approach is estimated through the discounted cash flows (“DCF”) analysis. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount rates, perpetual growth rates, and the amount and timing of expected future cash flows. Discount rates are based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity, plus a risk premium. The WACC used to test goodwill is derived from a group of comparable companies. The cash flows employed in the DCF analysis are derived from internal forecasts and external market forecasts. The market approach estimates the fair value of the reporting unit by utilizing the market comparable method which is based on revenue and earnings multiples from comparable companies. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, then the goodwill is written down by the amount that carrying value exceeds the fair value of the reporting unit, but not below zero. On September 15, 2020, Teradyne announced the appointment of Gregory Smith as President of Teradyne’s Robotics reportable segment effective October 1, 2020. With the appointment of Gregory Smith, the Robotics On September 15, 2020, Teradyne announced the appointment of Gregory Smith as President of Teradyne’s Robotics reportable segment effective October 1, 2020. With the appointment of Gregory Smith, the Robotics 77 77 7 Table of Contents reportable segment, which includes UR and MiR, is considered one operating segment and one reporting unit. Teradyne performed a goodwill impairment test at the time of the change in operating segments, which indicated the fair value of Teradyne’s reporting units exceeded their carrying values. In the fourth quarter of 2022, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Robotics reporting unit and a qualitative assessment for the Wireless Test and System Test reporting units. There was no impairment as a result of the annual test performed in the fourth quarter of 2022. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. In the fourth quarter of 2021, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Wireless Test, and System Test reporting units and qualitative assessment for the Robotics reporting unit. There was no impairment as a result of the annual test performed in the fourth quarter of 2021. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2022 and 2021 are as follows: Robotics Wireless Test Semiconductor Test System Test Total (in thousands) Balance at December 31, 2020: Goodwill $ 433,752 $ 361,819 $ 262,155 $ 158,699 $ 1,216,425 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 433,752 7,976 1,615 10,516 453,859 Foreign currency translation adjustment (27,781 ) — (54 ) — (27,835 ) Balance at December 31, 2021: Goodwill 405,971 361,819 262,101 158,699 1,188,590 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 405,971 7,976 1,561 10,516 426,024 Foreign currency translation adjustment (22,805 ) — (24 ) — (22,829 ) Balance at December 31, 2022: Goodwill 383,166 361,819 262,077 158,699 1,165,761 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) $ 383,166 $ 7,976 $ 1,537 $ 10,516 $ 403,195 Intangible Assets Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2022, 2021 and 2020. 78 reportable segment, which includes UR and MiR, is considered one operating segment and one reporting unit. Teradyne performed a goodwill impairment test at the time of the change in operating segments, which indicated the fair value of Teradyne’s reporting units exceeded their carrying values. In the fourth quarter of 2022, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Robotics reporting unit and a qualitative assessment for the Wireless Test and System Test reporting units. There was no impairment as a result of the annual test performed in the fourth quarter of 2022. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. In the fourth quarter of 2021, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Wireless Test, and System Test reporting units and qualitative assessment for the Robotics reporting unit. There was no impairment as a result of the annual test performed in the fourth quarter of 2021. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2022 and 2021 are as follows: Robotics Wireless Test Semiconductor Test System Test Total (in thousands) Balance at December 31, 2020: Goodwill $ 433,752 $ 361,819 $ 262,155 $ 158,699 $ 1,216,425 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 433,752 7,976 1,615 10,516 453,859 Foreign currency translation adjustment (27,781 ) — (54 ) — (27,835 ) Balance at December 31, 2021: Goodwill 405,971 361,819 262,101 158,699 1,188,590 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 405,971 7,976 1,561 10,516 426,024 Foreign currency translation adjustment (22,805 ) — (24 ) — (22,829 ) Balance at December 31, 2022: Goodwill 383,166 361,819 262,077 158,699 1,165,761 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) $ 383,166 $ 7,976 $ 1,537 $ 10,516 $ 403,195 Intangible Assets Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2022, 2021 and 2020. 78 reportable segment, which includes UR and MiR, is considered one operating segment and one reporting unit. Teradyne performed a goodwill impairment test at the time of the change in operating segments, which indicated the fair value of Teradyne’s reporting units exceeded their carrying values. reportable segment, which includes UR and MiR, is considered one operating segment and one reporting unit. Teradyne performed a goodwill impairment test at the time of the change in operating segments, which indicated the fair value of Teradyne’s reporting units exceeded their carrying values. , In the fourth quarter of 2022, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Robotics reporting unit and a qualitative assessment for the Wireless Test and System Test reporting units. There was no impairment as a result of the annual test performed in the fourth quarter of 2022. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. In the fourth quarter of 2022, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Robotics reporting unit and a qualitative assessment for the Wireless Test and System Test reporting units In the fourth quarter of 2022, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Robotics reporting unit and a qualitative assessment for the Wireless Test and System Test reporting units . There was impairment as a result of the annual test performed in the fourth quarter of 2022. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. In the fourth quarter of 2021, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Wireless Test, and System Test reporting units and qualitative assessment for the Robotics reporting unit. There was no impairment as a result of the annual test performed in the fourth quarter of 2021. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. In the fourth quarter of 2021, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Wireless Test, and System Test reporting units and qualitative assessment for the In the fourth quarter of 2021, Teradyne performed the annual goodwill impairment test, completing a quantitative assessment for the Wireless Test, and System Test reporting units and qualitative assessment for the Robotics Robotics reporting unit. There was no impairment as a result of the annual test performed in the fourth quarter of 2021. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. reporting unit. There was no impairment as a result of the annual test performed in the fourth quarter of 2021. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2022 and 2021 are as follows: The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2022 and 2021 are as follows: Robotics Robotics Wireless Wireless Test Test Semiconductor"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Semiconductor",
      "prior_body": "Test Test System System Test Test Total Total (in thousands)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Intangible Assets",
      "prior_body": "Intangible Assets Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2022, 2021 and 2020. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2022, 2021 and 2020. 78 78 7 Table of Contents Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2022 Gross Carrying Amount (1) Accumulated Amortization (1) Foreign Currency Translation Adjustment Net Carrying Amount (in thousands) Developed technology $ 270,967 $ (234,208 ) $ (5,935 ) $ 30,824 Customer relationships 57,739 (51,186 ) 172 6,725 Tradenames and trademarks 59,387 (41,930 ) (1,528 ) 15,929 Total intangible assets $ 388,093 $ (327,324 ) $ (7,291 ) $ 53,478 December 31, 2021 Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net Carrying Amount (in thousands) Developed technology $ 272,547 $ (223,413 ) $ (4,093 ) $ 45,041 Customer relationships 57,739 (48,921 ) 209 9,027 Tradenames and trademarks 59,387 (37,237 ) (583 ) 21,567 Total intangible assets $ 389,673 $ (309,571 ) $ (4,467 ) $ 75,635 (1) In 2022, $1.6 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. Aggregate intangible assets amortization expense for the years ended December 31, 2022, 2021, and 2020, was $19.3 million, $21.5 million, and $30.8 million, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2023 $ 18,835 2024 18,527 2025 11,230 2026 2,350 2027 1,134 Thereafter 1,402 M. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of December 31, 2022, Teradyne had entered into non-cancelable purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $654.8 million, of which $570.3 million is for less than one year. Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While 79 Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2022 Gross Carrying Amount (1) Accumulated Amortization (1) Foreign Currency Translation Adjustment Net Carrying Amount (in thousands) Developed technology $ 270,967 $ (234,208 ) $ (5,935 ) $ 30,824 Customer relationships 57,739 (51,186 ) 172 6,725 Tradenames and trademarks 59,387 (41,930 ) (1,528 ) 15,929 Total intangible assets $ 388,093 $ (327,324 ) $ (7,291 ) $ 53,478 December 31, 2021 Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net Carrying Amount (in thousands) Developed technology $ 272,547 $ (223,413 ) $ (4,093 ) $ 45,041 Customer relationships 57,739 (48,921 ) 209 9,027 Tradenames and trademarks 59,387 (37,237 ) (583 ) 21,567 Total intangible assets $ 389,673 $ (309,571 ) $ (4,467 ) $ 75,635 (1) In 2022, $1.6 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. Aggregate intangible assets amortization expense for the years ended December 31, 2022, 2021, and 2020, was $19.3 million, $21.5 million, and $30.8 million, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2023 $ 18,835 2024 18,527 2025 11,230 2026 2,350 2027 1,134 Thereafter 1,402 M. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of December 31, 2022, Teradyne had entered into non-cancelable purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $654.8 million, of which $570.3 million is for less than one year. Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While 79 Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2022"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Foreign Currency Translation Adjustment",
      "prior_body": "Net Net Carrying Carrying Amount Amount (in thousands)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "December 31, 2021",
      "prior_body": "Quoted Quoted Prices Prices in Active in Active Markets for"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Foreign Currency Translation Adjustment",
      "prior_body": "Net Net Carrying Carrying Amount Amount (in thousands)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Purchase Commitments",
      "prior_body": "Purchase Commitments As of December 31, 2022, Teradyne had entered into non-cancelable purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $654.8 million, of which $570.3 million is for less than one year. As of December 31, 2022, Teradyne had entered into non-cancelable purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $654.8 million, of which $570.3 million is for less than one year. Legal Claims"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Legal Claims",
      "prior_body": "Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While 79 79 Table of Contents it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. On March 8, 2021, Industrial Automation LLC, sellers of AutoGuide, submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the “Purchase Agreement”), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought full acceleration of the maximum earn-out amount payable under the Purchase Agreement, or $106.9 million, for the alleged breach of the earn-out provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim was settled for $26.7 million. As a result, Teradyne has no remaining earn-out obligations. Guarantees and Indemnification Obligations Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences, while the officer, director, employee, or agent, is or was serving, at Teradyne’s request in such capacity. Teradyne may enter into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ by-laws and charter. As a matter of practice, Teradyne has maintained directors’ and officers’ liability insurance coverage including coverage for directors and officers of acquired companies. Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne’s products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne’s products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below. As a matter of ordinary course of business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one-year duration commencing from installation. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based upon historical experience. When Teradyne receives revenue for extended warranties beyond the standard duration, the revenue is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. As of December 31, 2022, and 2021, Teradyne had a product warranty accrual of $14.2 million and $24.6 million, respectively, included in other accrued liabilities, and revenue deferrals related to extended warranties of $56.2 million and $64.2 million, respectively, included in short and long-term deferred revenue and customer advances. In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates these guarantees and determines what charges, if any, should be recorded. With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the 80 it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. On March 8, 2021, Industrial Automation LLC, sellers of AutoGuide, submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the “Purchase Agreement”), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought full acceleration of the maximum earn-out amount payable under the Purchase Agreement, or $106.9 million, for the alleged breach of the earn-out provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim was settled for $26.7 million. As a result, Teradyne has no remaining earn-out obligations. Guarantees and Indemnification Obligations Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences, while the officer, director, employee, or agent, is or was serving, at Teradyne’s request in such capacity. Teradyne may enter into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ by-laws and charter. As a matter of practice, Teradyne has maintained directors’ and officers’ liability insurance coverage including coverage for directors and officers of acquired companies. Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne’s products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne’s products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below. As a matter of ordinary course of business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one-year duration commencing from installation. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based upon historical experience. When Teradyne receives revenue for extended warranties beyond the standard duration, the revenue is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. As of December 31, 2022, and 2021, Teradyne had a product warranty accrual of $14.2 million and $24.6 million, respectively, included in other accrued liabilities, and revenue deferrals related to extended warranties of $56.2 million and $64.2 million, respectively, included in short and long-term deferred revenue and customer advances. In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates these guarantees and determines what charges, if any, should be recorded. With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the 80 it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. On March 8, 2021, Industrial Automation LLC, sellers of AutoGuide, submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the “Purchase Agreement”), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought full acceleration of the maximum earn-out amount payable under the Purchase Agreement, or $106.9 million, for the alleged breach of the earn-out provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim was settled for $26.7 million. As a result, Teradyne has no remaining earn-out obligations. On March 8, 2021, Industrial Automation LLC, sellers of AutoGuide, submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the “Purchase Agreement”), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought full acceleration of the maximum earn-out amount payable under the Purchase Agreement, or $106.9 million, for the alleged breach of the earn-out provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim was settled for $26.7 million. As a result, Teradyne has no remaining earn-out obligations. Guarantees and Indemnification Obligations"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Guarantees and Indemnification Obligations",
      "prior_body": "Guarantees and Indemnification Obligations Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences, while the officer, director, employee, or agent, is or was serving, at Teradyne’s request in such capacity. Teradyne may enter into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ by-laws and charter. As a matter of practice, Teradyne has maintained directors’ and officers’ liability insurance coverage including coverage for directors and officers of acquired companies. Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences, while the officer, director, employee, or agent, is or was serving, at Teradyne’s request in such capacity. Teradyne may enter into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ by-laws and charter. As a matter of practice, Teradyne has maintained directors’ and officers’ liability insurance coverage including coverage for directors and officers of acquired companies. Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne’s products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne’s products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below. Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne’s products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne’s products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below. As a matter of ordinary course of business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one-year duration commencing from installation. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based upon historical experience. When Teradyne receives revenue for extended warranties beyond the standard duration, the revenue is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. As of December 31, 2022, and 2021, Teradyne had a product warranty accrual of $14.2 million and $24.6 million, respectively, included in other accrued liabilities, and revenue deferrals related to extended warranties of $56.2 million and $64.2 million, respectively, included in short and long-term deferred revenue and customer advances. As a matter of ordinary course of business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one-year duration commencing from installation. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based upon historical experience. When Teradyne receives revenue for extended warranties beyond the standard duration, the revenue is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. As of December 31, 2022, and 2021, Teradyne had a product warranty accrual of $14.2 million and $24.6 million, respectively, included in other accrued liabilities, and revenue deferrals related to extended warranties of $56.2 million and $64.2 million, respectively, included in short and long-term deferred revenue and customer advances. In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates these guarantees and determines what charges, if any, should be recorded. In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates these guarantees and determines what charges, if any, should be recorded. With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the 80 80 0 Table of Contents indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. Based on historical experience and information known as of December 31, 2022, and 2021, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. N. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: 2022 2021 2020 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 715,501 $ 1,014,589 $ 784,147 Weighted average common shares-basic 158,434 164,960 166,120 Effect of dilutive potential common shares: Convertible note hedge warrant shares (1) 8,806 9,956 6,989 Incremental shares from assumed conversion of convertible notes (2) 1,763 7,435 8,528 Restricted stock units 657 1,180 1,264 Stock options 52 86 131 Employee stock purchase rights 22 8 10 Dilutive potential common shares 11,300 18,665 16,922 Weighted average common shares-diluted 169,734 183,625 183,042 Net income per common share-basic $ 4.52 $ 6.15 $ 4.72 Net income per common share-diluted $ 4.22 $ 5.53 $ 4.28 (1) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. (2) Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. The computation of diluted net income per common share for 2022 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.4 million shares because the effect would have been anti-dilutive. The computation of diluted net income per common share for 2021 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.1 million shares because the effect would have been anti-dilutive. O. RESTRUCTURING AND OTHER During the year ended December 31, 2022, Teradyne recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of asset. 81 indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. Based on historical experience and information known as of December 31, 2022, and 2021, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. N. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: 2022 2021 2020 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 715,501 $ 1,014,589 $ 784,147 Weighted average common shares-basic 158,434 164,960 166,120 Effect of dilutive potential common shares: Convertible note hedge warrant shares (1) 8,806 9,956 6,989 Incremental shares from assumed conversion of convertible notes (2) 1,763 7,435 8,528 Restricted stock units 657 1,180 1,264 Stock options 52 86 131 Employee stock purchase rights 22 8 10 Dilutive potential common shares 11,300 18,665 16,922 Weighted average common shares-diluted 169,734 183,625 183,042 Net income per common share-basic $ 4.52 $ 6.15 $ 4.72 Net income per common share-diluted $ 4.22 $ 5.53 $ 4.28 (1) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. (2) Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. The computation of diluted net income per common share for 2022 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.4 million shares because the effect would have been anti-dilutive. The computation of diluted net income per common share for 2021 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.1 million shares because the effect would have been anti-dilutive. O. RESTRUCTURING AND OTHER During the year ended December 31, 2022, Teradyne recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of asset. 81 indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. Based on historical experience and information known as of December 31, 2022, and 2021, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. Based on historical experience and information known as of December 31, 2022, and 2021, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. N. N. NET INCOME PER COMMON SHARE"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "NET INCOME PER COMMON SHARE",
      "prior_body": "NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: The following table sets forth the computation of basic and diluted net income per common share: 2022 2022 2021 2021 2020 2020 (in thousands, except per share amounts)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands, except per share amounts)",
      "prior_body": "Net income for basic and diluted net income per share Net income for basic and diluted net income per share Weighted average common shares-basic Weighted average common shares-basic Effect of dilutive potential common shares: Effect of dilutive potential common shares: Convertible note hedge warrant shares (1) Convertible note hedge warrant shares (1) Incremental shares from assumed conversion of convertible notes (2) Incremental shares from assumed conversion of convertible notes (2) Restricted stock units Restricted stock units Stock options Stock options Employee stock purchase rights Employee stock purchase rights Dilutive potential common shares Dilutive potential common shares Weighted average common shares-diluted Weighted average common shares-diluted Net income per common share-basic Net income per common share-basic Net income per common share-diluted Net income per common share-diluted Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. The computation of diluted net income per common share for 2022 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.4 million shares because the effect would have been anti-dilutive. The computation of diluted net income per common share for 2021 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.1 million shares because the effect would have been anti-dilutive. The computation of diluted net income per common share for 2022 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.4 million shares because the effect would have been anti-dilutive. The computation of diluted net income per common share for 2021 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.1 million shares because the effect would have been anti-dilutive. The computation of diluted net income per common share for 2021 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares and restricted stock units to purchase approximately 0.1 million shares because the effect would have been anti-dilutive. O. O. RESTRUCTURING AND OTHER"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "RETIREMENT PLANS",
      "prior_body": "RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all of its plans. , , Compensation—Retirement Benefits, Compensation—Retirement Benefits, Defined Benefit Pension Plans"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Defined Benefit Pension Plans",
      "prior_body": "Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (the “IRC”), as well as unfunded qualified foreign plans. Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (the “IRC”), as well as unfunded qualified foreign plans. In 2022, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $59.1 million across all pension plans from increases in discount rates, and approximately $3.1 million gain from foreign exchange effects for foreign plans. In 2021, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $8.7 million across all pension plans from increases in discount rates, and approximately $3.3 million gain from foreign exchange effects for foreign plans. In 2022, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $59.1 million across all pension plans from increases in discount rates, and approximately $3.1 million gain from foreign exchange effects for foreign plans. In 2021, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $8.7 million across all pension plans from increases in discount rates, and approximately $3.3 million gain from foreign exchange effects for foreign plans. 82 82 82 Table of Contents The December 31 balances of these defined benefit pension plans assets and obligations are shown below: 2022 2021 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 192,472 $ 45,774 $ 202,233 $ 50,988 Service cost 1,588 784 1,784 941 Interest cost 4,886 482 4,427 337 Actuarial (gain) loss (45,932 ) (13,181 ) (6,432 ) (2,257 ) Benefits paid (9,200 ) (863 ) (9,337 ) (925 ) Liability (gain) loss due to settlement — — (204 ) — Non-U.S. currency movement — (3,061 ) — (3,310 ) End of year 143,814 29,935 192,472 45,774 Change in plan assets: Fair value of plan assets: Beginning of year 149,578 2,017 158,855 1,856 Actual return on plan assets (31,835 ) 153 (3,217 ) 33 Company contributions 3,217 949 3,276 1,022 Benefits paid (9,200 ) (863 ) (9,337 ) (925 ) Non-U.S. currency movement — (169 ) — 31 End of year 111,760 2,087 149,578 2,017 Funded status $ (32,054 ) $ (27,848 ) $ (42,894 ) $ (43,757 ) The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2022 2021 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 11,761 $ — $ 15,110 $ — Accrued employees’ compensation and withholdings (3,055 ) (1,191 ) (3,288 ) (936 ) Retirement plans liabilities (40,760 ) (26,657 ) (54,716 ) (42,821 ) Funded status $ (32,054 ) $ (27,848 ) $ (42,894 ) $ (43,757 ) The accumulated benefit obligation for the United States defined benefit pension plans was $140.6 million and $187.5 million at December 31, 2022 and 2021, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $28.6 million and $42.5 million at December 31, 2022 and 2021, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31: 2022 2021 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 43.8 $ 29.9 $ 58.0 $ 45.8 Accumulated benefit obligation 42.3 28.6 55.7 42.5 Fair value of plan assets — 2.1 — 2.0 83Table of ContentsExpense For the years ended December 31, 2022, 2021, and 2020, Teradyne’s net periodic pension (income) cost was comprised of the following: 2022 2021 2020 United States Foreign United States Foreign United States Foreign (in thousands) Components of Net Periodic Pension (Income) Cost: Service cost $ 1,588 $ 784 $ 1,784 $ 941 $ 1,773 $ 907 Interest cost 4,886 482 4,427 337 5,770 516 Expected return on plan assets (2,927 ) (75 ) (3,858 ) (67 ) (4,840 ) (65 ) Net actuarial(gain) loss (11,170 ) (13,259 ) 643 (2,223 ) 6,463 2,949 Settlement (gain) loss — — (204 ) — 451 — Total net periodic pension (income) cost $ (7,623 ) $ (12,068 ) $ 2,792 $ (1,012 ) $ 9,617 $ 4,307 Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2022 2021 2020 United States Foreign United States Foreign United States Foreign Discount rate 2.5 % 1.1 % 2.2 % 0.7 % 2.8 % 1.1 % Expected return on plan assets 2.0 4.0 2.4 3.5 3.0 3.8 Salary progression rate 2.4 2.2 2.4 2.3 2.6 2.5 Weighted Average Assumptions to Determine Pension Obligations at December 31: 2022 2021 United States Foreign United States Foreign Discount rate 4.9 % 3.5 % 2.6 % 1.1 % Salary progression rate 2.5 2.1 2.4 2.2 In developing the expected return on plan assets assumption, Teradyne evaluates input from its investment manager and pension consultants, including their forecast of asset class return expectations. Teradyne believes that 2.0% was an appropriate rate to use for fiscal year 2022 for the U.S. Qualified Pension Plan (“U.S. Plan”). Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. The discount rate utilized to determine future pension obligations for the U.S. Plan is based on FTSE Pension Index adjusted for the plan’s expected cash flows and was 4.9% at December 31, 2022, up from 2.6% at December 31, 2021. Plan Assets As of December 31, 2022, the fair value of Teradyne’s pension plans’ assets totaled $113.8 million, of which $111.8 million was related to the U.S. Plan and $2.1 million was related to the Taiwan defined benefit pension plan. Substantially all of Teradyne’s pension plans’ assets are held in individual trusts, which were established for the investment of assets of Teradyne’s sponsored retirement plans. 84Table of Contents The December 31 balances of these defined benefit pension plans assets and obligations are shown below: 2022 2021 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 192,472 $ 45,774 $ 202,233 $ 50,988 Service cost 1,588 784 1,784 941 Interest cost 4,886 482 4,427 337 Actuarial (gain) loss (45,932 ) (13,181 ) (6,432 ) (2,257 ) Benefits paid (9,200 ) (863 ) (9,337 ) (925 ) Liability (gain) loss due to settlement — — (204 ) — Non-U.S. currency movement — (3,061 ) — (3,310 ) End of year 143,814 29,935 192,472 45,774 Change in plan assets: Fair value of plan assets: Beginning of year 149,578 2,017 158,855 1,856 Actual return on plan assets (31,835 ) 153 (3,217 ) 33 Company contributions 3,217 949 3,276 1,022 Benefits paid (9,200 ) (863 ) (9,337 ) (925 ) Non-U.S. currency movement — (169 ) — 31 End of year 111,760 2,087 149,578 2,017 Funded status $ (32,054 ) $ (27,848 ) $ (42,894 ) $ (43,757 ) The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2022 2021 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 11,761 $ — $ 15,110 $ — Accrued employees’ compensation and withholdings (3,055 ) (1,191 ) (3,288 ) (936 ) Retirement plans liabilities (40,760 ) (26,657 ) (54,716 ) (42,821 ) Funded status $ (32,054 ) $ (27,848 ) $ (42,894 ) $ (43,757 ) The accumulated benefit obligation for the United States defined benefit pension plans was $140.6 million and $187.5 million at December 31, 2022 and 2021, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $28.6 million and $42.5 million at December 31, 2022 and 2021, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31: 2022 2021 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 43.8 $ 29.9 $ 58.0 $ 45.8 Accumulated benefit obligation 42.3 28.6 55.7 42.5 Fair value of plan assets — 2.1 — 2.0 83 The December 31 balances of these defined benefit pension plans assets and obligations are shown below: The December 31 balances of these defined benefit pension plans assets and obligations are shown below: 2022 2022 2021 2021 United States"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Assets and Obligations",
      "prior_body": "Assets and Obligations Assets and Obligations Change in benefit obligation:"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Change in benefit obligation:",
      "prior_body": "Change in benefit obligation: Projected benefit obligation: Projected benefit obligation: Beginning of year Beginning of year Service cost Service cost Interest cost Interest cost Actuarial (gain) loss Actuarial (gain) loss Benefits paid Benefits paid Liability (gain) loss due to settlement Liability (gain) loss due to settlement Non-U.S. currency movement Non-U.S. currency movement End of year End of year Change in plan assets:"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Change in plan assets:",
      "prior_body": "Change in plan assets: Fair value of plan assets: Fair value of plan assets: Beginning of year Beginning of year Actual return on plan assets Actual return on plan assets Company contributions Company contributions Benefits paid Benefits paid Non-U.S. currency movement Non-U.S. currency movement End of year End of year Funded status Funded status The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2022 2022 2021 2021 United United States States Foreign Foreign United United States States Foreign Foreign (in thousands)"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in thousands)",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "(in millions)",
      "prior_body": "Japanese Yen Japanese Yen Taiwan Dollar Taiwan Dollar Korean Won Korean Won British Pound Sterling British Pound Sterling Euro Euro Singapore Dollar Singapore Dollar Philippine Peso Philippine Peso Chinese Yuan Chinese Yuan Total Total The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. At December 31, 2022 and 2021, 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: At December 31, 2022 and 2021, 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: December 31, 2022"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Components of Net Periodic Pension (Income) Cost:",
      "prior_body": "Components of Net Periodic Pension (Income) Cost: Service cost Service cost Interest cost Interest cost Expected return on plan assets Expected return on plan assets Net actuarial(gain) loss Net actuarial(gain) loss Settlement (gain) loss Settlement (gain) loss Total net periodic pension (income) cost Total net periodic pension (income) cost Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1:"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1:",
      "prior_body": "Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2022 2022 2021 2021 2020 2020 United States"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "United States",
      "prior_body": "Foreign Foreign Discount rate Discount rate Expected return on plan assets Expected return on plan assets Salary progression rate Salary progression rate Weighted Average Assumptions to Determine Pension Obligations at December 31:"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Weighted Average Assumptions to Determine Pension Obligations at December 31:",
      "prior_body": "Weighted Average Assumptions to Determine Pension Obligations at December 31: Weighted Average Assumptions to Determine Pension Obligations at December 31: 2022 2022 2021 2021 United States"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Plan Assets",
      "prior_body": "Plan Assets Plan Assets As of December 31, 2022, the fair value of Teradyne’s pension plans’ assets totaled $113.8 million, of which $111.8 million was related to the U.S. Plan and $2.1 million was related to the Taiwan defined benefit pension plan. Substantially all of Teradyne’s pension plans’ assets are held in individual trusts, which were established for the investment of assets of Teradyne’s sponsored retirement plans. As of December 31, 2022, the fair value of Teradyne’s pension plans’ assets totaled $113.8 million, of which $111.8 million was related to the U.S. Plan and $2.1 million was related to the Taiwan defined benefit pension plan. Substantially all of Teradyne’s pension plans’ assets are held in individual trusts, which were established for the investment of assets of Teradyne’s sponsored retirement plans. 84 84 4 Table of Contents"
    },
    {
      "status": "MODIFIED",
      "current_title": "Income Taxes",
      "prior_title": "Income Taxes",
      "similarity_score": 0.919,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.\"",
        "Reworded sentence: \"Advertising Costs Teradyne expenses all advertising costs as incurred.\""
      ],
      "current_body": "Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized.",
      "prior_body": "Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized."
    },
    {
      "status": "MODIFIED",
      "current_title": "Convertible Debt",
      "prior_title": "Convertible Debt",
      "similarity_score": 0.908,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"Convertible Debt Teradyne adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption.\"",
        "Removed sentence: \"As a result of adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component.\"",
        "Removed sentence: \"Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million.\"",
        "Removed sentence: \"In accordance with ASU 2020-06, Teradyne accounts for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives.\"",
        "Removed sentence: \"Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense.\""
      ],
      "current_body": "We adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, we account for a 27 27 Table of Contents Table of Contents Table of Contents convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments.",
      "prior_body": "We adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, we account for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments."
    },
    {
      "status": "MODIFIED",
      "current_title": "Investments",
      "prior_title": "Investments",
      "similarity_score": 0.902,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “Investments—Debt and Equity Securities.” ASC 320-10 requires that certain debt and equity securities be classified into one of three categories; trading, available-for-sale or held-to-maturity securities.\"",
        "Reworded sentence: \"Factors considered in determining whether a loss is other-than-temporary include: •The length of time and the extent to which the market value has been less than cost; The length of time and the extent to which the market value has been less than cost; •The financial condition and near-term prospects of the issuer; and The financial condition and near-term prospects of the issuer; and •The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value.\"",
        "Reworded sentence: \"Financial Assets and Financial Liabilities Teradyne records changes in fair value of equity securities directly in earnings and unrealized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.”\""
      ],
      "current_body": "Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “Investments—Debt and Equity Securities.” ASC 320-10 requires that certain debt and equity securities be classified into one of three categories; trading, available-for-sale or held-to-maturity securities. On a quarterly basis, Teradyne reviews its investments to identify and evaluate those that have an indication of a potential other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include: •The length of time and the extent to which the market value has been less than cost; The length of time and the extent to which the market value has been less than cost; •The financial condition and near-term prospects of the issuer; and The financial condition and near-term prospects of the issuer; and •The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2023 and 2022. Teradyne measures its debt and equity investments at fair value, in accordance with ASC 820-10, “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Financial Assets and Financial Liabilities Teradyne records changes in fair value of equity securities directly in earnings and unrealized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.”",
      "prior_body": "Investments Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “Investments—Debt and Equity Securities.” ASC 320-10 requires that certain debt and equity securities be classified into one of three categories; trading, available-for-sale or held-to-maturity securities. On a quarterly basis, Teradyne reviews its investments to identify and evaluate those that have an indication of a potential other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include: Investments—Debt and Equity Securities Investments—Debt and Equity Securities The length of time and the extent to which the market value has been less than cost; The length of time and the extent to which the market value has been less than cost; 56 56 6 Table of Contents • The financial condition and near-term prospects of the issuer; and • The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2022 and 2021. Teradyne measures its debt and equity investments at fair value, in accordance with ASC 820-10 , “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Financial Assets and Financial Liabilities Teradyne records changes in fair value of equity securities directly in earnings and realized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Prepayments Prepayments consist of the following: 2022 2021 (in thousands) Contract manufacturer and supplier prepayments $ 491,105 $ 364,478 Prepaid taxes 18,625 15,090 Prepaid maintenance and other services 14,545 13,660 Other prepayments 8,687 13,038 Total prepayments $ 532,962 $ 406,266 Retirement and Postretirement Plans Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. 57 • The financial condition and near-term prospects of the issuer; and • The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2022 and 2021. Teradyne measures its debt and equity investments at fair value, in accordance with ASC 820-10 , “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Financial Assets and Financial Liabilities Teradyne records changes in fair value of equity securities directly in earnings and realized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Prepayments Prepayments consist of the following: 2022 2021 (in thousands) Contract manufacturer and supplier prepayments $ 491,105 $ 364,478 Prepaid taxes 18,625 15,090 Prepaid maintenance and other services 14,545 13,660 Other prepayments 8,687 13,038 Total prepayments $ 532,962 $ 406,266 Retirement and Postretirement Plans Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. 57 The financial condition and near-term prospects of the issuer; and The financial condition and near-term prospects of the issuer; and The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2022 and 2021. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2022 and 2021. Teradyne measures its debt and equity investments at fair value, in accordance with ASC 820-10 , “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Fair Value Measurements and Disclosures. Fair Value Measurements and Disclosures. Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Financial Assets and Financial Liabilities"
    },
    {
      "status": "MODIFIED",
      "current_title": "A breach of our operational or security systems could negatively affect our business and results of operations.",
      "prior_title": "A breach of our operational or security systems could negatively affect our business and results of operations.",
      "similarity_score": 0.895,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We rely on various information technology networks and systems to process, transmit and store electronic information, including proprietary and confidential data, and to carry out and support a variety of business activities, including manufacturing, research and development, supply chain management, sales and accounting.\"",
        "Reworded sentence: \"Such attempts could result in the misappropriation, theft, misuse, disclosure or loss or destruction of 18 18 Table of Contents Table of Contents Table of Contents the intellectual property, or the proprietary, confidential or personal information, of Teradyne or our employees, customers, suppliers or other third parties, as well as damage to or disruptions in our information technology networks and systems.\"",
        "Removed sentence: \"A breach of the security of our products could negatively affect our business and results of operations.\"",
        "Removed sentence: \"We may be subject to security breaches of certain of our products caused by viruses, illegal break-ins or hacking, sabotage, or acts of vandalism by third parties or our employees or contractors.\"",
        "Removed sentence: \"A breach of our product security systems could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses, and increase our costs.\""
      ],
      "current_body": "We rely on various information technology networks and systems to process, transmit and store electronic information, including proprietary and confidential data, and to carry out and support a variety of business activities, including manufacturing, research and development, supply chain management, sales and accounting. We have experienced several attempted cyber-attacks of our network. None of the attempted attacks have caused a disruption to our operations or had a material adverse effect on our business or financial results. As a result of the attempts, we have taken further preventive security measures to protect our systems. Despite these preventative security measures we have implemented, we may continue to be vulnerable to attempts by third parties to gain unauthorized access to our networks or sabotage our systems. These attempts, which might be related to criminal hackers, industrial espionage or state-sponsored intrusions, include trying to covertly introduce malware to our computers, networks and systems and impersonating authorized users. In addition, third party suppliers and service providers that we rely on to manage our networks and systems and process and store our proprietary and confidential data, including the data of our customers and suppliers, may also be subject to similar attacks. Employees and contractors may also attempt to gain unauthorized access to our systems and steal proprietary and confidential data. Such attempts could result in the misappropriation, theft, misuse, disclosure or loss or destruction of 18 18 Table of Contents Table of Contents Table of Contents the intellectual property, or the proprietary, confidential or personal information, of Teradyne or our employees, customers, suppliers or other third parties, as well as damage to or disruptions in our information technology networks and systems. These threats are constantly evolving and expanding, such as through the increased use of artificial intelligence in our products and expanding remote work opportunities for our employees, thereby increasing the difficulty of defending against them or implementing adequate preventative measures. While we seek to detect and investigate all security incidents and to prevent their recurrence, attempts to gain unauthorized access to our information technology networks and systems may be successful, and in some cases, we might be unaware of an incident or its magnitude and effects. A failure in or a breach of our operational or security systems or infrastructure, or those of our suppliers and other service providers, including as a result of cyber-attacks, could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses and increase our costs. We expect to continue to devote significant resources to the security of our information technology networks and systems.",
      "prior_body": "We rely on various information technology networks and systems to process, transmit and store electronic information, including proprietary and confidential data, and to carry out and support a variety of business 22 Table of Contents activities, including manufacturing, research and development, supply chain management, sales and accounting. We have experienced several attempted cyber-attacks of our network. None of the attempted attacks have caused a disruption to our operations or had a material adverse effect on our business or financial results. As a result of the attempts, we have taken further preventive security measures to protect our systems. Despite these preventative security measures we have implemented, we may continue to be vulnerable to attempts by third parties to gain unauthorized access to our networks or sabotage our systems. These attempts, which might be related to criminal hackers, industrial espionage or state-sponsored intrusions, include trying to covertly introduce malware to our computers, networks and systems and impersonating authorized users. In addition, third party suppliers and service providers that we rely on to manage our networks and systems and process and store our proprietary and confidential data, including the data of our customers and suppliers, may also be subject to similar attacks. Employees and contractors may also attempt to gain unauthorized access to our systems and steal proprietary and confidential data. Such attempts could result in the misappropriation, theft, misuse, disclosure or loss or destruction of the intellectual property, or the proprietary, confidential or personal information, of Teradyne or our employees, customers, suppliers or other third parties, as well as damage to or disruptions in our information technology networks and systems. These threats are constantly evolving, thereby increasing the difficulty of defending against them or implementing adequate preventative measures. While we seek to detect and investigate all security incidents and to prevent their recurrence, attempts to gain unauthorized access to our information technology networks and systems may be successful, and in some cases, we might be unaware of an incident or its magnitude and effects. A failure in or a breach of our operational or security systems or infrastructure, or those of our suppliers and other service providers, including as a result of cyber-attacks, could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses and increase our costs. We expect to continue to devote significant resources to the security of our information technology networks and systems. A breach of the security of our products could negatively affect our business and results of operations. We may be subject to security breaches of certain of our products caused by viruses, illegal break-ins or hacking, sabotage, or acts of vandalism by third parties or our employees or contractors. A breach of our product security systems could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses, and increase our costs. We expect to continue to devote significant resources to the security of our products. Risks Related to the COVID-19 Pandemic The novel coronavirus (COVID-19) pandemic has impacted our business and could materially adversely affect our results of operations, financial condition, liquidity, or cash flows. During the global COVID-19 pandemic, government authorities implemented numerous measures in an effort to contain the spread of the virus, such as travel bans and restrictions, limitations on gatherings or social distancing requirements, quarantines, shelter-in-place orders, vaccination and testing mandates, and business limitations and shutdowns. These measures impacted our day-to-day operations and disrupted our business, workforce and operations, as well as the operations of our customers, contract manufacturers and suppliers. The COVID-19 pandemic also significantly increased economic and demand uncertainty in our markets. The COVID-19 pandemic, and the numerous measures implemented in response, adversely impacted our results of operations, including increasing costs company-wide, but we cannot accurately estimate the full extent of the impact to our 2022, 2021 and 2020 financial results or to our future financial results. We will continue to monitor the COVID-19 pandemic. However, we are unable to accurately predict the future of COVID-19, which will depend on future developments that are highly uncertain and cannot be predicted with accuracy, including, but not limited to, any new surges or new strains or variants of the virus in areas where we do business, the availability and use of vaccinations and any further actions we may take as required by government authorities or that we determine are in the best interest of our employees, customers, contract manufacturers and suppliers. 23 activities, including manufacturing, research and development, supply chain management, sales and accounting. We have experienced several attempted cyber-attacks of our network. None of the attempted attacks have caused a disruption to our operations or had a material adverse effect on our business or financial results. As a result of the attempts, we have taken further preventive security measures to protect our systems. Despite these preventative security measures we have implemented, we may continue to be vulnerable to attempts by third parties to gain unauthorized access to our networks or sabotage our systems. These attempts, which might be related to criminal hackers, industrial espionage or state-sponsored intrusions, include trying to covertly introduce malware to our computers, networks and systems and impersonating authorized users. In addition, third party suppliers and service providers that we rely on to manage our networks and systems and process and store our proprietary and confidential data, including the data of our customers and suppliers, may also be subject to similar attacks. Employees and contractors may also attempt to gain unauthorized access to our systems and steal proprietary and confidential data. Such attempts could result in the misappropriation, theft, misuse, disclosure or loss or destruction of the intellectual property, or the proprietary, confidential or personal information, of Teradyne or our employees, customers, suppliers or other third parties, as well as damage to or disruptions in our information technology networks and systems. These threats are constantly evolving, thereby increasing the difficulty of defending against them or implementing adequate preventative measures. While we seek to detect and investigate all security incidents and to prevent their recurrence, attempts to gain unauthorized access to our information technology networks and systems may be successful, and in some cases, we might be unaware of an incident or its magnitude and effects. A failure in or a breach of our operational or security systems or infrastructure, or those of our suppliers and other service providers, including as a result of cyber-attacks, could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses and increase our costs. We expect to continue to devote significant resources to the security of our information technology networks and systems. A breach of the security of our products could negatively affect our business and results of operations. We may be subject to security breaches of certain of our products caused by viruses, illegal break-ins or hacking, sabotage, or acts of vandalism by third parties or our employees or contractors. A breach of our product security systems could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses, and increase our costs. We expect to continue to devote significant resources to the security of our products. Risks Related to the COVID-19 Pandemic The novel coronavirus (COVID-19) pandemic has impacted our business and could materially adversely affect our results of operations, financial condition, liquidity, or cash flows. During the global COVID-19 pandemic, government authorities implemented numerous measures in an effort to contain the spread of the virus, such as travel bans and restrictions, limitations on gatherings or social distancing requirements, quarantines, shelter-in-place orders, vaccination and testing mandates, and business limitations and shutdowns. These measures impacted our day-to-day operations and disrupted our business, workforce and operations, as well as the operations of our customers, contract manufacturers and suppliers. The COVID-19 pandemic also significantly increased economic and demand uncertainty in our markets. The COVID-19 pandemic, and the numerous measures implemented in response, adversely impacted our results of operations, including increasing costs company-wide, but we cannot accurately estimate the full extent of the impact to our 2022, 2021 and 2020 financial results or to our future financial results. We will continue to monitor the COVID-19 pandemic. However, we are unable to accurately predict the future of COVID-19, which will depend on future developments that are highly uncertain and cannot be predicted with accuracy, including, but not limited to, any new surges or new strains or variants of the virus in areas where we do business, the availability and use of vaccinations and any further actions we may take as required by government authorities or that we determine are in the best interest of our employees, customers, contract manufacturers and suppliers. 23 activities, including manufacturing, research and development, supply chain management, sales and accounting. We have experienced several attempted cyber-attacks of our network. None of the attempted attacks have caused a disruption to our operations or had a material adverse effect on our business or financial results. As a result of the attempts, we have taken further preventive security measures to protect our systems. Despite these preventative security measures we have implemented, we may continue to be vulnerable to attempts by third parties to gain unauthorized access to our networks or sabotage our systems. These attempts, which might be related to criminal hackers, industrial espionage or state-sponsored intrusions, include trying to covertly introduce malware to our computers, networks and systems and impersonating authorized users. In addition, third party suppliers and service providers that we rely on to manage our networks and systems and process and store our proprietary and confidential data, including the data of our customers and suppliers, may also be subject to similar attacks. Employees and contractors may also attempt to gain unauthorized access to our systems and steal proprietary and confidential data. Such attempts could result in the misappropriation, theft, misuse, disclosure or loss or destruction of the intellectual property, or the proprietary, confidential or personal information, of Teradyne or our employees, customers, suppliers or other third parties, as well as damage to or disruptions in our information technology networks and systems. These threats are constantly evolving, thereby increasing the difficulty of defending against them or implementing adequate preventative measures. While we seek to detect and investigate all security incidents and to prevent their recurrence, attempts to gain unauthorized access to our information technology networks and systems may be successful, and in some cases, we might be unaware of an incident or its magnitude and effects. A failure in or a breach of our operational or security systems or infrastructure, or those of our suppliers and other service providers, including as a result of cyber-attacks, could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses and increase our costs. We expect to continue to devote significant resources to the security of our information technology networks and systems."
    },
    {
      "status": "MODIFIED",
      "current_title": "Translation of Non-U.S. Currencies",
      "prior_title": "Translation of Non-U.S. Currencies",
      "similarity_score": 0.893,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The functional currency for all non-U.S.\"",
        "Reworded sentence: \"All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period.\"",
        "Reworded sentence: \"For the years ended December 31, 2023, 2022 and 2021, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.9 million, $10.8 million, and $(2.1) million, respectively.\"",
        "Removed sentence: \"Comprehensive Income Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment.\"",
        "Removed sentence: \"RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements.\""
      ],
      "current_body": "The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2023, 2022 and 2021, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.9 million, $10.8 million, and $(2.1) million, respectively. 51 51 Table of Contents Table of Contents Table of Contents These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. Net Income per Common Share Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne is required to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, Teradyne is accounting for the conversion spread using the treasury stock method.",
      "prior_body": "Translation of Non-U.S. Currencies The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary 60 60 0 Table of Contents assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2022, 2021 and 2020, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.8 million, $(2.1) million, and $2.6 million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. Net Income per Common Share Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne is required to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, Teradyne is accounting for the conversion spread using the treasury stock method. Comprehensive Income Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment. C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. D. INVESTMENT IN OTHER COMPANY On June 1, 2021, Teradyne invested $12.0 million in MachineMetrics, Inc. (“MachineMetrics”), a private company that develops and sells products to improve manufacturing performance through automated machine data collection, alerting, and analytics. Teradyne’s investment in MachineMetrics aligns with its strategy of providing and investing in leading edge products for automating industrial production processes in growing markets. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on a quarterly basis. At December 31, 2022, the value of the investment was $12.0 million, and there was no change during the year ended December 31, 2022. 61 assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2022, 2021 and 2020, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.8 million, $(2.1) million, and $2.6 million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. Net Income per Common Share Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne is required to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, Teradyne is accounting for the conversion spread using the treasury stock method. Comprehensive Income Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment. C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. D. INVESTMENT IN OTHER COMPANY On June 1, 2021, Teradyne invested $12.0 million in MachineMetrics, Inc. (“MachineMetrics”), a private company that develops and sells products to improve manufacturing performance through automated machine data collection, alerting, and analytics. Teradyne’s investment in MachineMetrics aligns with its strategy of providing and investing in leading edge products for automating industrial production processes in growing markets. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on a quarterly basis. At December 31, 2022, the value of the investment was $12.0 million, and there was no change during the year ended December 31, 2022. 61 assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2022, 2021 and 2020, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.8 million, $(2.1) million, and $2.6 million, respectively. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2022, 2021 and 2020, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.8 million, $(2.1) million, and $2.6 million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. Net Income per Common Share"
    },
    {
      "status": "MODIFIED",
      "current_title": "Retirement and Postretirement Plans",
      "prior_title": "Retirement and Postretirement Plans",
      "similarity_score": 0.886,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"Retirement and Postretirement Plans Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans.\"",
        "Removed sentence: \"Teradyne calculates the expected return on plan assets using the fair value of the plan assets.\"",
        "Removed sentence: \"Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans.\"",
        "Reworded sentence: \"Teradyne reports net periodic pension cost and net periodic postretirement benefit costs in accordance with ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The service cost component of net benefit costs is reported in the same line item in the consolidated statement of operations as other employee compensation costs.\"",
        "Removed sentence: \"Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.\""
      ],
      "current_body": "We recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Qualified Pension Plan (“U.S. Plan”) assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 4.75% was an appropriate rate of return on assets to use for 2023. The December 31, 2023 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.75% at December 31, 2023, down from 4.95% at December 31, 2022. We estimate that in 2024 we will recognize approximately $0.2 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2024 is based on a 4.75% discount rate and a 4.65% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans.",
      "prior_body": "We recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Qualified Pension Plan (“U.S. Plan”) assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 2.0% was an appropriate rate of return on assets to use for 2022. The December 31, 2022 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.95% at December 31, 2022, up from 2.65% at December 31, 2021. We estimate that in 2023 we will recognize approximately $0.4 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2023 is based on a 4.95% 32 Table of Contents discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. Goodwill, Intangible and Long-Lived Assets We assess goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. We review intangible and long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Impairment of intangible and long-lived assets would result in the asset being written down to its estimated fair value. The calculated fair value of a reporting unit or intangible or long-lived asset is dependent upon discounted cash flow (“DCF”) models, discount rates, and market multiples. DCF models rely on our forecasted mid-term plans which are subjective based on customer or market conditions and can change materially. We utilize third party specialists when determining discount rates and selected market multiples. A change in any of these key assumptions could result in a reporting unit, intangible asset, or long-lived asset being impaired in a future period. Convertible Debt We adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, we account for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments. Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized. Results of Operations Information pertaining to fiscal year 2020 results of operations, including a year-to-year comparison against fiscal year 2021, was included in our Annual Report on Form 10-K for the year ended December 31, 2021 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” which was filed with the SEC on February 23, 2022. This information is incorporated by reference herein. 33 discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. Goodwill, Intangible and Long-Lived Assets We assess goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. We review intangible and long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Impairment of intangible and long-lived assets would result in the asset being written down to its estimated fair value. The calculated fair value of a reporting unit or intangible or long-lived asset is dependent upon discounted cash flow (“DCF”) models, discount rates, and market multiples. DCF models rely on our forecasted mid-term plans which are subjective based on customer or market conditions and can change materially. We utilize third party specialists when determining discount rates and selected market multiples. A change in any of these key assumptions could result in a reporting unit, intangible asset, or long-lived asset being impaired in a future period. Convertible Debt We adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, we account for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments. Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized. Results of Operations Information pertaining to fiscal year 2020 results of operations, including a year-to-year comparison against fiscal year 2021, was included in our Annual Report on Form 10-K for the year ended December 31, 2021 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” which was filed with the SEC on February 23, 2022. This information is incorporated by reference herein. 33 discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans."
    },
    {
      "status": "MODIFIED",
      "current_title": "Trade regulations and restrictions impact our ability to manufacture certain products and to sell products to and support certain customers, which may materially adversely affect our sales and results of operations.",
      "prior_title": "Trade regulations and restrictions impact our ability to manufacture certain products and to sell products to and support certain customers, which may materially adversely affect our sales and results of operations.",
      "similarity_score": 0.883,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"origin technologies to certain Chinese semiconductor companies by adding those companies to the Entity List under U.S.\"",
        "Reworded sentence: \"Department of Commerce to attempt to minimize the impact of the restrictions on our business.\"",
        "Reworded sentence: \"We are taking appropriate actions, including filing license applications and obtaining licenses from the U.S.\"",
        "Reworded sentence: \"We will continue to assess the impact of these export controls on our business and operations and take appropriate actions, including filing for licenses with the U.S.\"",
        "Reworded sentence: \"Department of Commerce published regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment.\""
      ],
      "current_body": "We are subject to U.S. laws and regulations that limit and restrict the export of some of our products and services and may restrict our transactions with certain customers, business partners and other persons. In certain circumstances, export control and economic sanctions regulations prohibit the export of certain products, services and technologies, and in other circumstances are required to obtain an export license before exporting the controlled item. We must also comply with export restrictions and laws imposed by other countries affecting trade and investments. We maintain an export compliance program but there are risks that the compliance controls could be circumvented, exposing us to legal liabilities. Compliance with these laws has not significantly limited our sales but could significantly limit them in the future. Changes in, and responses to, U.S. trade policy could reduce the competitiveness of our products and cause our sales to drop, which could have a material adverse effect on our business, financial condition or results of operations. The U.S. government from time to time has issued export restrictions that prohibit U.S. companies from exporting U.S. manufactured products, foreign manufactured products with more than 25% controlled U.S. content, as well as U.S. origin technology. For example, the U.S. Department of Commerce has restricted the access of U.S. origin technologies to certain Chinese semiconductor companies by adding those companies to the Entity List under U.S. Export Administration Regulations (“EAR”). The addition of certain of these companies to the entity list has had and will continue to have an adverse impact on our business with these customers. We will take appropriate actions, including filing for licenses with the U.S. Department of Commerce to attempt to minimize the impact of the restrictions on our business. 19 19 Table of Contents Table of Contents Table of Contents On May 16, 2019, Huawei and 68 of its affiliates, including HiSilicon, were added to the U.S. Department of Commerce Entity List under the EAR. This action by the U.S. Department of Commerce imposed new export licensing requirements on exports, re-exports, and in-country transfers of all U.S. regulated products, software and technology to the designated Huawei entities. On August 17, 2020, the U.S. Department of Commerce published final regulations expanding the scope of the U.S. EAR to include additional products that would become subject to export restrictions relating to Huawei entities including HiSilicon. These new regulations restrict the sale to Huawei and the designated Huawei entities of certain non-U.S. made items, such as semiconductor devices, manufactured for or sold to Huawei entities including HiSilicon under specific, detailed conditions set forth in the new regulations. These new regulations have impacted our sales to Huawei, HiSilicon and their suppliers. We are taking appropriate actions, including filing license applications and obtaining licenses from the U.S. Department of Commerce. However, we do not expect these actions will mitigate the impact of the regulations on our sales to Huawei, HiSilicon and other suppliers. As a result, the regulations will continue to have an adverse impact on our business and financial results. It is uncertain the extent these new regulations and any additional regulations that may be implemented by the U.S. Department of Commerce or other government agency may have on our business with other customers or potential customers. Also, our controls related to Entity List compliance could be circumvented, exposing us to legal liabilities. On April 28, 2020, the U.S. Department of Commerce published new export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela. The definition of military end user is broad. The regulations went into effect on June 29, 2020. In December 2020, the U.S. Department of Commerce issued a list of companies in China and other countries that it considered to be military end users. Compliance with the new export controls has impacted our ability to sell products to certain customers in China. In addition, while we maintain an export compliance program, our compliance controls could be circumvented, exposing us to legal liabilities. We will continue to assess the impact of these export controls on our business and operations and take appropriate actions, including filing for licenses with the U.S. Department of Commerce, to minimize any disruption. However, we cannot be certain that the actions we take will mitigate all the risks associated with the export controls that may impact our business. On October 7, 2022, the U.S. Department of Commerce published regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The restrictions impacted our sales to certain companies in China and our manufacturing and development operations in China. We mitigated the impact of these restrictions on our business by obtaining licenses from the U.S. Department of Commerce. On October 17, 2023, the U.S. Department of Commerce released new rules updating the export controls issued on October 7, 2022. The new rules, which took effect on November 17, 2023, significantly limit the impact of the October 7, 2022 restrictions on our business. However, the regulations may continue to have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. In response to the regulations issued by the U.S. Department of Commerce, the Chinese government has passed new laws, including blocking legislation, which may impact our business activities in China. The Company is assessing the potential impact of these new Chinese laws and monitoring relevant laws and regulations issued by the Chinese government. The impact of these new Chinese laws on our business activities in China remains uncertain at this time.",
      "prior_body": "We are subject to U.S. laws and regulations that limit and restrict the export of some of our products and services and may restrict our transactions with certain customers, business partners and other persons. In certain circumstances, export control and economic sanctions regulations prohibit the export of certain products, services and technologies, and in other circumstances are required to obtain an export license before exporting the controlled item. We must also comply with export restrictions and laws imposed by other countries affecting trade and investments. We maintain an export compliance program but there are risks that the compliance controls could be circumvented, exposing us to legal liabilities. Compliance with these laws has not significantly limited our sales but could significantly limit them in the future. Changes in, and responses to, U.S. trade policy could reduce the competitiveness of our products and cause our sales to drop, which could have a material adverse effect on our business, financial condition or results of operations. The U.S. government from time to time has issued export restrictions that prohibit U.S. companies from exporting U.S. manufactured products, foreign manufactured products with more than 25% controlled U.S. content, as well as U.S. origin technology. For example, the U.S. Department of Commerce has restricted the access of U.S. origin technologies to certain Chinese semiconductor companies including YMTC and CXMT by adding those companies to the Entity List under U.S. Export Administration Regulations (“EAR”). The addition of certain of these companies to the entity list has had and will continue to have an adverse impact on our business with these customers. We will take appropriate actions, including filing for licenses with the U.S. Department of Commerce to attempt to minimize the impact of the restrictions on these companies. On May 16, 2019, Huawei and 68 of its affiliates, including HiSilicon, were added to the U.S. Department of Commerce Entity List under the EAR. This action by the U.S. Department of Commerce imposed new export licensing requirements on exports, re-exports, and in-country transfers of all U.S. regulated products, software and technology to the designated Huawei entities. On August 17, 2020, the U.S. Department of Commerce published final regulations expanding the scope of the U.S. EAR to include additional products that would become subject to export restrictions relating to Huawei entities including HiSilicon. These new regulations restrict the sale to Huawei and the designated Huawei entities of certain non-U.S. made items, such as semiconductor devices, manufactured for or sold to Huawei entities including HiSilicon under specific, detailed conditions set forth in the new regulations. These new regulations have impacted our sales to Huawei, HiSilicon and their suppliers. We are taking appropriate actions, including filing license applications and obtaining licenses 24 Table of Contents from the U.S. Department of Commerce. However, we do not expect these actions will mitigate the impact of the regulations on our sales to Huawei, HiSilicon and other suppliers. As a result, the regulations will continue to have an adverse impact on our business and financial results. It is uncertain the extent these new regulations and any additional regulations that may be implemented by the U.S. Department of Commerce or other government agency may have on our business with other customers or potential customers. Also, our controls related to Entity List compliance could be circumvented, exposing us to legal liabilities. On April 28, 2020, the U.S. Department of Commerce published new export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela. The definition of military end user is broad. The regulations went into effect on June 29, 2020. In December 2020, the U.S. Department of Commerce issued a list of companies in China and other countries that it considered to be military end users. Compliance with the new export controls has impacted our ability to sell products to certain customers in China. In addition, while we maintain an export compliance program, our compliance controls could be circumvented, exposing us to legal liabilities. We will continue to assess the impact of the new export controls on our business and operations and take appropriate actions, including filing for licenses with the U.S. Department of Commerce, to minimize any disruption. However, we cannot be certain that the actions we take will mitigate all the risks associated with the export controls that may impact our business. On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. We continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We also are filing license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. At this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. We also have determined that the restrictions on the export of certain US origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. We have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. We cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed. In response to the regulations issued by the U.S. Department of Commerce, the Chinese government has passed new laws, including blocking legislation, which may impact our business activities in China. The Company is assessing the potential impact of these new Chinese laws and monitoring relevant laws and regulations issued by the Chinese government. The impact of these new Chinese laws on our business activities in China remains uncertain at this time. We may be subject to product recalls and warranty and product liability claims. We invest significant resources in the design, manufacturing and testing of our products. However, from time to time, we discover design or manufacturing defects in our products after they have been shipped and, as a 25 from the U.S. Department of Commerce. However, we do not expect these actions will mitigate the impact of the regulations on our sales to Huawei, HiSilicon and other suppliers. As a result, the regulations will continue to have an adverse impact on our business and financial results. It is uncertain the extent these new regulations and any additional regulations that may be implemented by the U.S. Department of Commerce or other government agency may have on our business with other customers or potential customers. Also, our controls related to Entity List compliance could be circumvented, exposing us to legal liabilities. On April 28, 2020, the U.S. Department of Commerce published new export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela. The definition of military end user is broad. The regulations went into effect on June 29, 2020. In December 2020, the U.S. Department of Commerce issued a list of companies in China and other countries that it considered to be military end users. Compliance with the new export controls has impacted our ability to sell products to certain customers in China. In addition, while we maintain an export compliance program, our compliance controls could be circumvented, exposing us to legal liabilities. We will continue to assess the impact of the new export controls on our business and operations and take appropriate actions, including filing for licenses with the U.S. Department of Commerce, to minimize any disruption. However, we cannot be certain that the actions we take will mitigate all the risks associated with the export controls that may impact our business. On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. We continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We also are filing license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. At this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. We also have determined that the restrictions on the export of certain US origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. We have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. We cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed. In response to the regulations issued by the U.S. Department of Commerce, the Chinese government has passed new laws, including blocking legislation, which may impact our business activities in China. The Company is assessing the potential impact of these new Chinese laws and monitoring relevant laws and regulations issued by the Chinese government. The impact of these new Chinese laws on our business activities in China remains uncertain at this time. We may be subject to product recalls and warranty and product liability claims. We invest significant resources in the design, manufacturing and testing of our products. However, from time to time, we discover design or manufacturing defects in our products after they have been shipped and, as a 25 from the U.S. Department of Commerce. However, we do not expect these actions will mitigate the impact of the regulations on our sales to Huawei, HiSilicon and other suppliers. As a result, the regulations will continue to have an adverse impact on our business and financial results. It is uncertain the extent these new regulations and any additional regulations that may be implemented by the U.S. Department of Commerce or other government agency may have on our business with other customers or potential customers. Also, our controls related to Entity List compliance could be circumvented, exposing us to legal liabilities. On April 28, 2020, the U.S. Department of Commerce published new export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela. The definition of military end user is broad. The regulations went into effect on June 29, 2020. In December 2020, the U.S. Department of Commerce issued a list of companies in China and other countries that it considered to be military end users. Compliance with the new export controls has impacted our ability to sell products to certain customers in China. In addition, while we maintain an export compliance program, our compliance controls could be circumvented, exposing us to legal liabilities. We will continue to assess the impact of the new export controls on our business and operations and take appropriate actions, including filing for licenses with the U.S. Department of Commerce, to minimize any disruption. However, we cannot be certain that the actions we take will mitigate all the risks associated with the export controls that may impact our business. On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. We continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We also are filing license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. At this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. We also have determined that the restrictions on the export of certain US origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. We have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. We cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed. In response to the regulations issued by the U.S. Department of Commerce, the Chinese government has passed new laws, including blocking legislation, which may impact our business activities in China. The Company is assessing the potential impact of these new Chinese laws and monitoring relevant laws and regulations issued by the Chinese government. The impact of these new Chinese laws on our business activities in China remains uncertain at this time."
    },
    {
      "status": "MODIFIED",
      "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS",
      "prior_title": "THE COMPANY",
      "similarity_score": 0.881,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"A.THE COMPANY Teradyne, Inc.\"",
        "Reworded sentence: \"Teradyne designs, develops, manufactures and sells automated test systems and robotics products.\"",
        "Reworded sentence: \"Teradyne’s automated test equipment and robotics products and services include: •semiconductor test (“Semiconductor Test”) systems; •storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); •wireless test (“Wireless Test”) systems; and\""
      ],
      "current_body": "A.THE COMPANY Teradyne, Inc. (“Teradyne”) is a leading global supplier of automated test equipment and robotics solutions. Teradyne designs, develops, manufactures and sells automated test systems and robotics products. Teradyne’s automated test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s robotics products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automated test equipment and robotics products and services include: •semiconductor test (“Semiconductor Test”) systems; •storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); •wireless test (“Wireless Test”) systems; and",
      "prior_body": "THE COMPANY Teradyne, Inc. (“Teradyne”) is a leading global supplier of automated test equipment and robotics solutions. Teradyne designs, develops, manufactures and sells automatic test systems and robotics products. Teradyne’s automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s robotics products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automatic test equipment and robotics products and services include: Teradyne, Inc. (“Teradyne”) is a leading global supplier of automated test equipment and robotics solutions. Teradyne designs, develops, manufactures and sells automatic test systems and robotics products. Teradyne’s automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s robotics products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automatic test equipment and robotics products and services include: Teradyne, Inc. (“Teradyne”) is a leading global supplier of automated test equipment and robotics solutions. Teradyne designs, develops, manufactures and sells automatic test systems and robotics products. Teradyne’s automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s robotics products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automatic test equipment and robotics products and services include: semiconductor test (“Semiconductor Test”) systems; semiconductor test (“Semiconductor Test”) systems; storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); wireless test (“Wireless Test”) systems; and wireless test (“Wireless Test”) systems; and robotics (“Robotics”) products. robotics (“Robotics”) products. B. B. ACCOUNTING POLICIES"
    },
    {
      "status": "MODIFIED",
      "current_title": "Revenue Recognition",
      "prior_title": "Revenue Recognition",
      "similarity_score": 0.854,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Revenue from Contracts with Customers In accordance with ASC 606, Teradyne recognizes revenues, when or as control is transferred to a customer.\"",
        "Reworded sentence: \"•Teradyne accounts for a contract with a customer when there is written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection.\"",
        "Reworded sentence: \"•Teradyne periodically enters into contracts with customers in which a customer may purchase a combination of goods and services, such as products with extended warranty obligations.\"",
        "Reworded sentence: \"45 45 Table of Contents Table of Contents Table of Contents •Teradyne determines the transaction price to be the amount of consideration to which Teradyne expects to be entitled to, which is generally at contractually stated prices.\"",
        "Reworded sentence: \"•In order to determine the appropriate timing for revenue recognition, Teradyne first determines if the transaction meets any of three criteria for over time recognition.\""
      ],
      "current_body": "In accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), we recognize revenues, when or as control is transferred to a customer. Our determination of revenue requires judgment in the determination of performance obligations and allocation of the transaction price to performance obligations. We often sell bundled orders that include both product and services or multiple different products within the same order. We evaluate each of the deliverables to determine if it meets the definition of a performance obligation, which requires that it is capable of being distinct and distinct within the context of the contract. This 26 26 Table of Contents Table of Contents Table of Contents determination is based on an assessment of contractual rights of the contract and the ability of the performance obligation to perform on its own or with readily available resources. In bundled transactions we estimate the standalone selling price of each identified performance obligation and use that estimate to allocate the transaction price among said performance obligations. The estimated standalone selling price is determined using all information reasonably available to us, including standalone transactions, market information and other observable inputs.",
      "prior_body": "In accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), we recognize revenues, when or as control is transferred to a customer. Our determination of revenue requires judgment in the determination of performance obligations and allocation of the transaction price to performance obligations. We often sell bundled orders that include both product and services or multiple different products within the same order. We evaluate each of the deliverables to determine if it meets the definition of a performance obligation, which requires that it is capable of being distinct and distinct within the context of the contract. This determination is based on an assessment of contractual rights of the contract and the ability of the performance obligation to perform on its own or with readily available resources. In bundled transactions we estimate the standalone selling price of each identified performance obligation and use that estimate to allocate the transaction price among said performance obligations. The estimated standalone selling price is determined using all information reasonably available to us, including standalone transactions, market information and other observable inputs."
    },
    {
      "status": "MODIFIED",
      "current_title": "Exchange Rate Risk Management",
      "prior_title": "Exchange Rate Risk Management",
      "similarity_score": 0.842,
      "confidence": "high",
      "key_changes": [
        "Added sentence: \"We also enter into foreign currency forward contracts to hedge the impact of exchange rates on our revenues in Japanese Yen and Taiwan Dollar.\"",
        "Added sentence: \"These contracts have maturities of less than one year.\"",
        "Added sentence: \"On November 7, 2023, in connection with our agreement to acquire 10% investment in Technoprobe S.p.A, we purchased a call option to buy 481.0 million Euros.\"",
        "Added sentence: \"The expiration date of the option is April 26, 2024.\"",
        "Added sentence: \"Since the transaction price was agreed to in Euros, this option contract reduces the impact to the purchase price of changes in the Euro to U.S.\""
      ],
      "current_body": "We regularly enter into foreign currency forward contracts to hedge the value of our monetary assets and liabilities in Japanese Yen, British Pound, Korean Won, Taiwan Dollar, Singapore Dollar, Euro, Philippine Peso, Chinese Yuan, and Danish Krone. These foreign currency forward contracts have maturities of approximately one month. These contracts are used to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities. We also enter into foreign currency forward contracts to hedge the impact of exchange rates on our revenues in Japanese Yen and Taiwan Dollar. These contracts have maturities of less than one year. We do not engage in currency speculation. On November 7, 2023, in connection with our agreement to acquire 10% investment in Technoprobe S.p.A, we purchased a call option to buy 481.0 million Euros. The expiration date of the option is April 26, 2024. Since the transaction price was agreed to in Euros, this option contract reduces the impact to the purchase price of changes in the Euro to U.S. Dollar exchange rate. We performed a sensitivity analysis assuming a hypothetical 10% fluctuation in foreign exchange rates to the hedging contracts and the underlying exposures described above. As of December 31, 2023 and 2022, the analysis indicated that these hypothetical market movements would not have a material effect on our consolidated financial position, results of operations or cash flows.",
      "prior_body": "We regularly enter into foreign currency forward contracts to hedge the value of our monetary assets and liabilities in Japanese Yen, British Pound, Korean Won, Taiwan Dollar, Singapore Dollar, Euro, Philippine Peso, Chinese Yuan, and Danish Krone. These foreign currency forward contracts have maturities of approximately one month. These contracts are used to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities. We do not engage in currency speculation. We performed a sensitivity analysis assuming a hypothetical 10% fluctuation in foreign exchange rates to the hedging contracts and the underlying exposures described above. As of December 31, 2022 and 2021, the analysis indicated that these hypothetical market movements would not have a material effect on our consolidated financial position, results of operations or cash flows."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.831,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) Other (income) expense, net $ (1,843 ) $ (2,482 ) $ 6,488 Foreign exchange option contracts Other (income) expense, net (7,464 ) — — Derivatives designated as hedging instruments: Foreign exchange forward and option contracts Revenue (3,127 ) (251 ) — Total derivatives $ (12,434 ) $ (2,733 ) $ 6,488 (1)The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies.\"",
        "Reworded sentence: \"For the years ended December 31, 2023, 2022 and 2021, net losses (gains) from remeasurement of monetary assets and liabilities denominated in foreign currencies were $10.9 million, $10.8 million, and $(2.1) million, respectively.\"",
        "Removed sentence: \"See Note J: “Debt” regarding derivatives related to the convertible senior notes.\"",
        "Removed sentence: \"Concentration of Credit Risk\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Goodwill, Intangible and Long-Lived Assets",
      "prior_title": "Goodwill, Intangible and Long-Lived Assets",
      "similarity_score": 0.829,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Teradyne accounts for goodwill and intangible assets in accordance with ASC 350-10, “Intangibles-Goodwill and Other.” Intangible assets are amortized over their estimated useful economic life and are carried at cost less accumulated amortization.\"",
        "Removed sentence: \"Intangibles-Goodwill and Other.\"",
        "Removed sentence: \"Intangibles-Goodwill and Other.\"",
        "Removed sentence: \"In accordance with ASC 350-10, Teradyne has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.\"",
        "Removed sentence: \"If Teradyne determines this is the case, Teradyne is required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized.\""
      ],
      "current_body": "We assess goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. We review intangible and long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Impairment of intangible and long-lived assets would result in the asset being written down to its estimated fair value. The calculated fair value of a reporting unit or intangible or long-lived asset is dependent upon discounted cash flow (“DCF”) models, discount rates, and market multiples. DCF models rely on our forecasted mid-term plans which are subjective based on customer or market conditions and can change materially. We utilize third party specialists when determining discount rates and selected market multiples. A change in any of these key assumptions could result in a reporting unit, intangible asset, or long-lived asset being impaired in a future period.",
      "prior_body": "We assess goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. We review intangible and long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Impairment of intangible and long-lived assets would result in the asset being written down to its estimated fair value. The calculated fair value of a reporting unit or intangible or long-lived asset is dependent upon discounted cash flow (“DCF”) models, discount rates, and market multiples. DCF models rely on our forecasted mid-term plans which are subjective based on customer or market conditions and can change materially. We utilize third party specialists when determining discount rates and selected market multiples. A change in any of these key assumptions could result in a reporting unit, intangible asset, or long-lived asset being impaired in a future period."
    },
    {
      "status": "MODIFIED",
      "current_title": "Selling and Administrative",
      "prior_title": "Selling and Administrative",
      "similarity_score": 0.826,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Selling and administrative expenses were as follows: 2023 2022\""
      ],
      "current_body": "Selling and administrative expenses were as follows: 2023 2022",
      "prior_body": "Selling and administrative expenses were as follows: 2021-2022 Selling and administrative Percent of total revenues The increase of $10.5 million in selling and administrative expenses was primarily driven by increase in headcount and greater spending in Robotics, partially offset by lower variable compensation."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our operating results are likely to fluctuate significantly.",
      "prior_title": "Our operating results are likely to fluctuate significantly.",
      "similarity_score": 0.81,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The following factors could impact future operations: •a worldwide economic slowdown or disruption in the global financial or industrial markets; a worldwide economic slowdown or disruption in the global financial or industrial markets; •cost increases from inflation on materials, employee wages, third party labor, and contract manufacturing; cost increases from inflation on materials, employee wages, third party labor, and contract manufacturing; •competitive pressures on selling prices; competitive pressures on selling prices; •our ability to introduce, and the market acceptance of, new products; our ability to introduce, and the market acceptance of, new products; •changes in product revenues mix resulting from changes in customer demand; changes in product revenues mix resulting from changes in customer demand; •the level of orders received which can be shipped in a quarter because of the tendency of customers to wait until late in a quarter to commit to purchase due to capital expenditure approvals and constraints occurring at the end of a quarter, or the hope of obtaining more favorable pricing from a competitor seeking the business; the level of orders received which can be shipped in a quarter because of the tendency of customers to wait until late in a quarter to commit to purchase due to capital expenditure approvals and constraints occurring at the end of a quarter, or the hope of obtaining more favorable pricing from a competitor seeking the business; •engineering and development investments relating to new product introductions, and the expansion of manufacturing, outsourcing and engineering operations in Asia; engineering and development investments relating to new product introductions, and the expansion of manufacturing, outsourcing and engineering operations in Asia; •provisions for excess and obsolete inventory relating to the lack of demand for and the discontinuance of products; provisions for excess and obsolete inventory relating to the lack of demand for and the discontinuance of products; •impairment charges for certain long-lived and intangible assets, and goodwill; impairment charges for certain long-lived and intangible assets, and goodwill; •an increase in the leasing of our products to customers; an increase in the leasing of our products to customers; •disruption caused by health pandemics, such as the coronavirus; disruption caused by health pandemics, such as the coronavirus; •the success of sales channel expansion in Robotics; the success of sales channel expansion in Robotics; •our ability to expand our global distribution channel for our collaborative and mobile robots; our ability to expand our global distribution channel for our collaborative and mobile robots; •parallel or multi-site testing which could lead to a decrease in the ultimate size of the market for our semiconductor and electronic test products; and parallel or multi-site testing which could lead to a decrease in the ultimate size of the market for our semiconductor and electronic test products; and •the ability of our suppliers and subcontractors to meet product quality or delivery requirements needed to satisfy customer orders for our products, especially if consolidated revenues increase.\"",
        "Removed sentence: \"If our suppliers do not meet product or delivery requirements, we could have reduced revenues and earnings.\"",
        "Removed sentence: \"If any of our suppliers were to cancel contracts or commitments or fail to meet the quality or delivery requirements needed to satisfy customer orders for our products, we could lose time-sensitive customer orders, have significantly decreased revenues and earnings and be subject to contractual penalties, which would have a material adverse effect on our business, results of operations and financial condition.\"",
        "Removed sentence: \"In addition, we rely on contract manufacturers for certain of our products, and our ability to meet customer orders for those products depends upon the timeliness and quality of the work performed by these subcontractors, over whom we do not exercise any control.\"",
        "Removed sentence: \"To a certain extent, we are dependent upon the ability of our suppliers and contract manufacturers to help meet increased product or delivery requirements.\""
      ],
      "current_body": "Our operating results are affected by a wide variety of factors that could materially adversely affect revenues or profitability. The following factors could impact future operations: •a worldwide economic slowdown or disruption in the global financial or industrial markets; a worldwide economic slowdown or disruption in the global financial or industrial markets; •cost increases from inflation on materials, employee wages, third party labor, and contract manufacturing; cost increases from inflation on materials, employee wages, third party labor, and contract manufacturing; •competitive pressures on selling prices; competitive pressures on selling prices; •our ability to introduce, and the market acceptance of, new products; our ability to introduce, and the market acceptance of, new products; •changes in product revenues mix resulting from changes in customer demand; changes in product revenues mix resulting from changes in customer demand; •the level of orders received which can be shipped in a quarter because of the tendency of customers to wait until late in a quarter to commit to purchase due to capital expenditure approvals and constraints occurring at the end of a quarter, or the hope of obtaining more favorable pricing from a competitor seeking the business; the level of orders received which can be shipped in a quarter because of the tendency of customers to wait until late in a quarter to commit to purchase due to capital expenditure approvals and constraints occurring at the end of a quarter, or the hope of obtaining more favorable pricing from a competitor seeking the business; •engineering and development investments relating to new product introductions, and the expansion of manufacturing, outsourcing and engineering operations in Asia; engineering and development investments relating to new product introductions, and the expansion of manufacturing, outsourcing and engineering operations in Asia; •provisions for excess and obsolete inventory relating to the lack of demand for and the discontinuance of products; provisions for excess and obsolete inventory relating to the lack of demand for and the discontinuance of products; •impairment charges for certain long-lived and intangible assets, and goodwill; impairment charges for certain long-lived and intangible assets, and goodwill; •an increase in the leasing of our products to customers; an increase in the leasing of our products to customers; •disruption caused by health pandemics, such as the coronavirus; disruption caused by health pandemics, such as the coronavirus; •the success of sales channel expansion in Robotics; the success of sales channel expansion in Robotics; •our ability to expand our global distribution channel for our collaborative and mobile robots; our ability to expand our global distribution channel for our collaborative and mobile robots; •parallel or multi-site testing which could lead to a decrease in the ultimate size of the market for our semiconductor and electronic test products; and parallel or multi-site testing which could lead to a decrease in the ultimate size of the market for our semiconductor and electronic test products; and •the ability of our suppliers and subcontractors to meet product quality or delivery requirements needed to satisfy customer orders for our products, especially if consolidated revenues increase. the ability of our suppliers and subcontractors to meet product quality or delivery requirements needed to satisfy customer orders for our products, especially if consolidated revenues increase. As a result of the foregoing and other factors, we have experienced and may continue to experience material fluctuations in future operating results on a quarterly or annual basis which could materially and adversely affect our business, financial condition, operating results or stock price.",
      "prior_body": "Our operating results are affected by a wide variety of factors that could materially adversely affect revenues or profitability. The following factors could impact future operations: a worldwide economic slowdown or disruption in the global financial or industrial markets; cost increases from inflation on materials, employee wages, third party labor, and contract manufacturing; competitive pressures on selling prices; our ability to introduce, and the market acceptance of, new products; changes in product revenues mix resulting from changes in customer demand; 19 Table of Contents • the level of orders received which can be shipped in a quarter because of the tendency of customers to wait until late in a quarter to commit to purchase due to capital expenditure approvals and constraints occurring at the end of a quarter, or the hope of obtaining more favorable pricing from a competitor seeking the business; • engineering and development investments relating to new product introductions, and the expansion of manufacturing, outsourcing and engineering operations in Asia; • provisions for excess and obsolete inventory relating to the lack of demand for and the discontinuance of products; • impairment charges for certain long-lived and intangible assets, and goodwill; • an increase in the leasing of our products to customers; • disruption caused by health pandemics, such as the coronavirus; • the success of sales channel expansion in Robotics; • our ability to expand our global distribution channel for our collaborative and mobile robots; • parallel or multi-site testing which could lead to a decrease in the ultimate size of the market for our semiconductor and electronic test products; and • the ability of our suppliers and subcontractors to meet product quality or delivery requirements needed to satisfy customer orders for our products, especially if consolidated revenues increase. As a result of the foregoing and other factors, we have experienced and may continue to experience material fluctuations in future operating results on a quarterly or annual basis which could materially and adversely affect our business, financial condition, operating results or stock price. If our suppliers do not meet product or delivery requirements, we could have reduced revenues and earnings. If any of our suppliers were to cancel contracts or commitments or fail to meet the quality or delivery requirements needed to satisfy customer orders for our products, we could lose time-sensitive customer orders, have significantly decreased revenues and earnings and be subject to contractual penalties, which would have a material adverse effect on our business, results of operations and financial condition. In addition, we rely on contract manufacturers for certain of our products, and our ability to meet customer orders for those products depends upon the timeliness and quality of the work performed by these subcontractors, over whom we do not exercise any control. To a certain extent, we are dependent upon the ability of our suppliers and contract manufacturers to help meet increased product or delivery requirements. It may be difficult for certain suppliers to meet delivery requirements in a period of rapid growth, therefore impacting our ability to meet our customers’ demands. Our suppliers are subject to trade regulations, including tariffs and export restrictions imposed by the United States Government and by the governments of other countries. These regulations could impact our suppliers’ ability to provide us with components for our products or could increase the price of those components. We rely on the financial strength of our suppliers. There can be no assurance that the loss of suppliers either as a result of financial viability, bankruptcy or otherwise will not have a material adverse effect on our business, results of operations or financial condition. Our operations may be adversely impacted if our outsourced contract manufacturers or service providers fail to perform. We depend on Flex Ltd. (“Flex”) to manufacture and test our FLEX and J750 family of products from its facilities in China and, starting in 2022, also Malaysia; Plexus Corp. (“Plexus”) to manufacture and test our 20 • the level of orders received which can be shipped in a quarter because of the tendency of customers to wait until late in a quarter to commit to purchase due to capital expenditure approvals and constraints occurring at the end of a quarter, or the hope of obtaining more favorable pricing from a competitor seeking the business; • engineering and development investments relating to new product introductions, and the expansion of manufacturing, outsourcing and engineering operations in Asia; • provisions for excess and obsolete inventory relating to the lack of demand for and the discontinuance of products; • impairment charges for certain long-lived and intangible assets, and goodwill; • an increase in the leasing of our products to customers; • disruption caused by health pandemics, such as the coronavirus; • the success of sales channel expansion in Robotics; • our ability to expand our global distribution channel for our collaborative and mobile robots; • parallel or multi-site testing which could lead to a decrease in the ultimate size of the market for our semiconductor and electronic test products; and • the ability of our suppliers and subcontractors to meet product quality or delivery requirements needed to satisfy customer orders for our products, especially if consolidated revenues increase. As a result of the foregoing and other factors, we have experienced and may continue to experience material fluctuations in future operating results on a quarterly or annual basis which could materially and adversely affect our business, financial condition, operating results or stock price. If our suppliers do not meet product or delivery requirements, we could have reduced revenues and earnings. If any of our suppliers were to cancel contracts or commitments or fail to meet the quality or delivery requirements needed to satisfy customer orders for our products, we could lose time-sensitive customer orders, have significantly decreased revenues and earnings and be subject to contractual penalties, which would have a material adverse effect on our business, results of operations and financial condition. In addition, we rely on contract manufacturers for certain of our products, and our ability to meet customer orders for those products depends upon the timeliness and quality of the work performed by these subcontractors, over whom we do not exercise any control. To a certain extent, we are dependent upon the ability of our suppliers and contract manufacturers to help meet increased product or delivery requirements. It may be difficult for certain suppliers to meet delivery requirements in a period of rapid growth, therefore impacting our ability to meet our customers’ demands. Our suppliers are subject to trade regulations, including tariffs and export restrictions imposed by the United States Government and by the governments of other countries. These regulations could impact our suppliers’ ability to provide us with components for our products or could increase the price of those components. We rely on the financial strength of our suppliers. There can be no assurance that the loss of suppliers either as a result of financial viability, bankruptcy or otherwise will not have a material adverse effect on our business, results of operations or financial condition. Our operations may be adversely impacted if our outsourced contract manufacturers or service providers fail to perform. We depend on Flex Ltd. (“Flex”) to manufacture and test our FLEX and J750 family of products from its facilities in China and, starting in 2022, also Malaysia; Plexus Corp. (“Plexus”) to manufacture and test our 20 the level of orders received which can be shipped in a quarter because of the tendency of customers to wait until late in a quarter to commit to purchase due to capital expenditure approvals and constraints occurring at the end of a quarter, or the hope of obtaining more favorable pricing from a competitor seeking the business; engineering and development investments relating to new product introductions, and the expansion of manufacturing, outsourcing and engineering operations in Asia; provisions for excess and obsolete inventory relating to the lack of demand for and the discontinuance of products; impairment charges for certain long-lived and intangible assets, and goodwill; an increase in the leasing of our products to customers; disruption caused by health pandemics, such as the coronavirus; the success of sales channel expansion in Robotics; our ability to expand our global distribution channel for our collaborative and mobile robots; parallel or multi-site testing which could lead to a decrease in the ultimate size of the market for our semiconductor and electronic test products; and the ability of our suppliers and subcontractors to meet product quality or delivery requirements needed to satisfy customer orders for our products, especially if consolidated revenues increase. As a result of the foregoing and other factors, we have experienced and may continue to experience material fluctuations in future operating results on a quarterly or annual basis which could materially and adversely affect our business, financial condition, operating results or stock price."
    },
    {
      "status": "MODIFIED",
      "current_title": "We may not be able to pay our debt and other obligations.",
      "prior_title": "We may not be able to pay our debt and other obligations.",
      "similarity_score": 0.806,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"If we are unable to generate sufficient cash flows or otherwise obtain funds necessary to make required payments on our senior secured revolving credit facility or certain of our other obligations, we would be in default under the terms thereof, which would permit the holders of those obligations to accelerate their maturity and also could cause defaults under future indebtedness we may incur.\"",
        "Removed sentence: \"In addition, we cannot be certain that we would be able to repay amounts due on the Notes if those obligations were to be accelerated following the occurrence of any other event of default as defined in the instruments creating those obligations, or if the holders of the Notes require us to repurchase the Notes upon the occurrence of a fundamental change involving us.\"",
        "Removed sentence: \"Moreover, we cannot be certain that we will have sufficient funds or will be able to arrange for financing to pay the principal amount due on the Notes at maturity.\""
      ],
      "current_body": "If our cash flows are inadequate to meet our obligations, we could face substantial liquidity problems. If we are unable to generate sufficient cash flows or otherwise obtain funds necessary to make required payments on our senior secured revolving credit facility or certain of our other obligations, we would be in default under the terms thereof, which would permit the holders of those obligations to accelerate their maturity and also could cause defaults under future indebtedness we may incur. Any such default could have a material adverse effect on our business, prospects, financial position and operating results.",
      "prior_body": "If our cash flows are inadequate to meet our obligations, we could face substantial liquidity problems. If we are unable to generate sufficient cash flows or otherwise obtain funds necessary to make required payments on the Notes or certain of our other obligations, we would be in default under the terms thereof, which would permit the holders of those obligations to accelerate their maturity and also could cause defaults under future indebtedness we may incur. Any such default could have a material adverse effect on our business, prospects, financial position and operating results. In addition, we cannot be certain that we would be able to repay amounts due on the Notes if those obligations were to be accelerated following the occurrence of any other event of default as defined in the instruments creating those obligations, or if the holders of the Notes require us to repurchase the Notes upon the occurrence of a fundamental change involving us. Moreover, we cannot be certain that we will have sufficient funds or will be able to arrange for financing to pay the principal amount due on the Notes at maturity."
    },
    {
      "status": "MODIFIED",
      "current_title": "Property, Plant and Equipment",
      "prior_title": "Property, Plant and Equipment",
      "similarity_score": 0.8,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets.\"",
        "Removed sentence: \"Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense.\"",
        "Removed sentence: \"When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations.\"",
        "Reworded sentence: \"Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery, equipment and software 3 to 5 years Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years 40 Building improvements 5 to 10 years 5 10 Leasehold improvements Lesser of lease term or 10 years 10 Furniture and fixtures 10 years 10 Test systems manufactured internally 6 years 6 Machinery, equipment and software 3 to 5 years 3 5 Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers.\"",
        "Reworded sentence: \"The net book value of internally manufactured test systems sold in the years ended December 31, 2023, 2022, and 2021 was $2.8 million, $6.6 million, and $16.6 million, respectively.\""
      ],
      "current_body": "Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery, equipment and software 3 to 5 years Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years 40 Building improvements 5 to 10 years 5 10 Leasehold improvements Lesser of lease term or 10 years 10 Furniture and fixtures 10 years 10 Test systems manufactured internally 6 years 6 Machinery, equipment and software 3 to 5 years 3 5 Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2023, 2022, and 2021 was $2.8 million, $6.6 million, and $16.6 million, respectively. six-year Convertible Debt Teradyne adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, Teradyne accounts for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments.",
      "prior_body": "Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. 58 58 Table of Contents Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery, equipment and software 3 to 5 years Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2022, 2021, and 2020 was $6.6 million, $16.6 million, and $7.3 million, respectively. Convertible Debt Teradyne adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, Teradyne accounts for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments. Leases Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne. As of December 31, 2022, Teradyne does not have material leases that have not yet commenced. Teradyne determines if the lease is an operating or finance lease at the lease commencement date based upon the terms of the lease and the nature of the asset. The lease term used to calculate the lease liability includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease liability is measured at the present value of future lease payments, discounted using the discount rate for the lease at the commencement date. As Teradyne is typically unable to determine the implicit rate, Teradyne uses an incremental borrowing rate based on the lease term and economic environment at commencement date. Teradyne initially measures payments based on an index by using the applicable rate at lease commencement. Variable payments that do not depend on an index are not included in the lease liability and are recognized as they are incurred. The right-of-use (“ROU”) asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments, and reduced by any lease incentives. 59 Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery, equipment and software 3 to 5 years Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2022, 2021, and 2020 was $6.6 million, $16.6 million, and $7.3 million, respectively. Convertible Debt Teradyne adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, Teradyne accounts for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments. Leases Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne. As of December 31, 2022, Teradyne does not have material leases that have not yet commenced. Teradyne determines if the lease is an operating or finance lease at the lease commencement date based upon the terms of the lease and the nature of the asset. The lease term used to calculate the lease liability includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease liability is measured at the present value of future lease payments, discounted using the discount rate for the lease at the commencement date. As Teradyne is typically unable to determine the implicit rate, Teradyne uses an incremental borrowing rate based on the lease term and economic environment at commencement date. Teradyne initially measures payments based on an index by using the applicable rate at lease commencement. Variable payments that do not depend on an index are not included in the lease liability and are recognized as they are incurred. The right-of-use (“ROU”) asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments, and reduced by any lease incentives. 59 Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings Buildings Building improvements Building improvements Leasehold improvements Leasehold improvements 10 Furniture and fixtures Furniture and fixtures Test systems manufactured internally Test systems manufactured internally Machinery, equipment and software Machinery, equipment and software Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2022, 2021, and 2020 was $6.6 million, $16.6 million, and $7.3 million, respectively. Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2022, 2021, and 2020 was $6.6 million, $16.6 million, and $7.3 million, respectively. Convertible Debt"
    },
    {
      "status": "MODIFIED",
      "current_title": "Engineering and Development",
      "prior_title": "Engineering and Development",
      "similarity_score": 0.799,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Engineering and development expenses were as follows: 2023 2022\""
      ],
      "current_body": "Engineering and development expenses were as follows: 2023 2022",
      "prior_body": "Engineering and development expenses were as follows: 2021-2022 Engineering and development Percent of total revenues The increase of $13.0 million in engineering and development expenses was primarily driven by increase in headcount and greater spending in Robotics and Semiconductor Test, partially offset by lower variable compensation."
    },
    {
      "status": "MODIFIED",
      "current_title": "Capital Resources and Material Cash Requirements",
      "prior_title": "Capital Resources and Material Cash Requirements",
      "similarity_score": 0.797,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Our cash, cash equivalents and marketable securities balance decreased by $68.0 million in 2023 to $937.2 million.\"",
        "Reworded sentence: \"The increase in operating assets was due to a $140.7 million increase in prepayments and other assets due to prepayments to our contract manufacturers, and an $80.8 million increase in inventories, partially offset by a $50.6 million decrease in accounts receivable due to lower sales.\"",
        "Reworded sentence: \"Investing activities during 2022 provided cash of $43.8 million, due to $268.1 million and $222.9 million in proceeds from sales and maturities of marketable securities, respectively, $3.4 million due to sale of an asset, partially offset by $287.4 million used for purchases of marketable securities and $163.2 million used for purchases of property, plant and equipment.\"",
        "Reworded sentence: \"In January 2023, May 2023, August 2023 and November 2023, our Board of Directors declared a quarterly cash dividend of $0.11 per share.\"",
        "Removed sentence: \"In January 2021, May 2021, August 2021 and November 2021, our Board of Directors declared a quarterly cash dividend of $0.10 per share.\""
      ],
      "current_body": "Our cash, cash equivalents and marketable securities balance decreased by $68.0 million in 2023 to $937.2 million. Cash decreased due to stock repurchases in the amount of $397.2 million, quarterly cash dividend payments in the amount of $67.9 million, and payments of convertible debt principal in the amount of $50.3 million, partially offset by cash generated by our global operations. Operating activities during 2023 provided cash of $585.2 million. Changes in operating assets and liabilities used cash of $9.6 million. This was due to a $33.2 million decrease in operating assets and a $42.8 million decrease in operating liabilities. The decrease in operating assets was due to a $71.0 million decrease in accounts receivable due to lower sales and a $5.3 million decrease in inventories, partially offset by a $43.1 million increase in prepayments and other assets due to prepayments to our contract manufacturers. 32 32 Table of Contents Table of Contents Table of Contents The decrease in operating liabilities was due to a $57.2 million decrease in deferred revenue and customer advance payments, a $26.9 million decrease in income taxes, a $21.2 million decrease in accrued employee compensation, and $5.5 million of retirement plan contributions, partially offset by a $45.0 million increase in accounts payable, and a $23.0 million increase in other accrued liabilities. Investing activities during 2023 used cash of $179.6 million, due to $161.9 million used for purchases of marketable securities, $159.6 million used for purchases of property, plant and equipment, and $5.0 million used for issuance of convertible loan, partially offset by $85.0 million and $61.4 million in proceeds from maturities and sales of marketable securities, respectively, and $0.5 million in proceeds from the cancellation of Teradyne owned life insurance policies related to the cash surrender value. Financing activities during 2023 used cash of $501.9 million, due to $397.2 million used for the repurchase of 3.9 million shares of common stock at an average price of $102.47 per share, $67.9 million used for dividend payments, $50.3 million used for the payments of convertible debt principal, and $20.8 million used for payments related to net settlement of employee stock compensation awards, partially offset by $34.3 million from the issuance of common stock under employee stock purchase and stock option plans. Operating activities during 2022 provided cash of $577.9 million. Changes in operating assets and liabilities used cash of $272.6 million. This was due to a $170.9 million increase in operating assets and a $101.7 million decrease in operating liabilities. The increase in operating assets was due to a $140.7 million increase in prepayments and other assets due to prepayments to our contract manufacturers, and an $80.8 million increase in inventories, partially offset by a $50.6 million decrease in accounts receivable due to lower sales. The decrease in operating liabilities was due to a $40.3 million decrease in accrued employee compensation, a $29.8 million decrease in income taxes, a $10.8 million decrease in accounts payable, a $9.3 million decrease in other accrued liabilities, a $6.2 million decrease in deferred revenue and customer advance payments, and $5.1 million of retirement plan contributions. Investing activities during 2022 provided cash of $43.8 million, due to $268.1 million and $222.9 million in proceeds from sales and maturities of marketable securities, respectively, $3.4 million due to sale of an asset, partially offset by $287.4 million used for purchases of marketable securities and $163.2 million used for purchases of property, plant and equipment. Financing activities during 2022 used cash of $893.0 million, due to $752.1 million used for the repurchase of 7.3 million shares of common stock at an average price of $103.69 per share, $69.7 million used for dividend payments, $66.8 million used for the payments of convertible debt principal, and $33.2 million used for payments related to net settlement of employee stock compensation awards, partially offset by $28.7 million from the issuance of common stock under employee stock purchase and stock option plans. In January 2023, May 2023, August 2023 and November 2023, our Board of Directors declared a quarterly cash dividend of $0.11 per share. Total dividend payments in 2023 were $67.9 million. In January 2022, May 2022, August 2022 and November 2022, our Board of Directors declared a quarterly cash dividend of $0.11 per share. Total dividend payments in 2022 were $69.7 million. In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. In 2023, we repurchased 3.9 million shares of common stock for $397.2 million, which excludes related excise tax, at an average price of $102.47 per share. In 2022, we repurchased 7.3 million shares of common stock for $752.1 million at an average price of $103.69 per share against the 2021 repurchase program. The cumulative repurchases as of December 31, 2022, under the 2021 repurchase program, were 12.0 million shares of common stock for $1,352.1 million at an average price per share of $112.44. In 2024 we intend to repurchase up to $90.0 million. While we declared a quarterly cash dividend and authorized a share repurchase program, we may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of our Board of Directors, which will consider, among other things, our earnings, capital requirements and financial condition. On November 7, 2023, Teradyne announced a strategic partnership with Technoprobe S.p.A including Teradyne's agreement to acquire a 10% equity investment in Technoprobe for 481.0 million Euros. Teradyne will face a three year restriction on the transfer or disposition of the Technoprobe shares upon closing of the agreement, subject to certain early termination events. On May 1, 2020, we entered into a credit agreement providing a three-year, senior secured revolving credit facility of $400 million. On December 10, 2021, the credit agreement was amended to extend the senior secured revolving credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. As of February 22, 2023, we have not borrowed any funds under the credit facility. 33 33 Table of Contents Table of Contents Table of Contents We expect operations to continue to be the primary source of cash to operate the business and meet material cash commitments, including any payments of convertible debt principal, our stock repurchase program, our quarterly dividends, our office lease obligations, contractual obligations related to inventory purchases and the construction of new facilities. We believe our cash, cash equivalents and marketable securities balance will be sufficient to pay our quarterly dividend and meet our working capital and expenditure needs for at least the next twelve months. Inflation has not had a significant long-term impact on earnings. At December 31, 2023, our future contractual obligations were related to debt, leases, retirement plan liabilities, deferred tax benefits, and purchase obligations. See Note J. “Debt”, Note I. “Leases”, Note P. “Retirement Plans”, and Note S. “Income Taxes” of Notes to Consolidated Financial Statements in this Annual Report for information about those obligations, which Notes are incorporated by reference into this section. Our purchase obligations were approximately $414.4 million, with $379.1 million expected to be paid within twelve months.",
      "prior_body": "Our cash, cash equivalents and marketable securities balance decreased by $495 million in 2022 to $1,005 million. Cash decreased due to stock repurchases in the amount of $752 million, quarterly cash dividend payments in the amount of $70 million, payments of convertible debt principal in the amount of $67 million partially offset by cash generated by our global operations. Operating activities during 2022 provided cash of $577.9 million. Changes in operating assets and liabilities used cash of $272.6 million. This was due to a $170.9 million increase in operating assets and a $101.7 million decrease in operating liabilities. The increase in operating assets was due to a $140.7 million increase in prepayments and other assets due to prepayments to our contract manufacturers, an $80.8 million increase in inventories, partially offset by a $50.6 million decrease in accounts receivable due to lower sales. The decrease in operating liabilities was due to a $40.3 million decrease in accrued employee compensation, a $29.8 million decrease in income taxes, a $10.8 million decrease in accounts payable, a $9.3 million decrease in other accrued liabilities, a $6.2 million decrease in deferred revenue and customer advance payments, and $5.1 million of retirement plan contributions. Investing activities during 2022 provided cash of $43.8 million, due to $268.1 million and $222.9 million in proceeds from sales and maturities of marketable securities, respectively, $3.4 million due to sale of an asset, partially offset by $287.4 million used for purchases of marketable securities, and $163.2 million used for purchases of property, plant and equipment. Financing activities during 2022 used cash of $893.0 million, due to $752.1 million used for the repurchase of 7.3 million shares of common stock at an average price of $103.69 per share, $69.7 million used for dividend payments, $66.8 million used for the payments of convertible debt principal, and $33.2 million used for payments related to net settlement of employee stock compensation awards, partially offset by $28.7 million from the issuance of common stock under employee stock purchase and stock option plans. Operating activities during 2021 provided cash of $1,098.4 million. Changes in operating assets and liabilities used cash of $98.8 million. This was due to a $227.1 million increase in operating assets and a $128.4 million increase in operating liabilities. The increase in operating assets was due to a $175.8 million increase in prepayments and other assets due to prepayments to our contract manufacturers, a $57.8 million increase in accounts receivable due to greater sales, partially offset by a $6.5 million decrease in inventories. The increase in operating liabilities was due to a $63.5 million increase in other accrued liabilities, a $35.1 million increase in accrued employee compensation, a $22.9 million increase in accounts payable, and a $9.9 million increase in deferred revenue and customer advance payments, partially offset by a $5.6 million decrease in income taxes, and $5.4 million of retirement plan contributions. 39 Table of Contents Investing activities during 2021 provided cash of $120.4 million, due to $660.1 million and $266.5 million in proceeds from maturities and sales of marketable securities, respectively, partially offset by $661.8 million used for purchases of marketable securities, $132.5 million used for purchases of property, plant and equipment, and $12.0 million used for an investment in MachineMetrics, Inc. (“MachineMetrics”). Financing activities during 2021 used cash of $1,008.6 million, due to $600.0 million used for the repurchase of 4.8 million shares of common stock at an average price of $125.74 per share, $343.0 million used for the payments of convertible debt principal, $66.0 million used for dividend payments, and $32.3 million used for payments related to net settlement of employee stock compensation awards, partially offset by $32.7 million from the issuance of common stock under employee stock purchase and stock option plans. In January 2022, May 2022, August 2022 and November 2022, our Board of Directors declared a quarterly cash dividend of $0.11 per share. Total dividend payments in 2022 were $69.7 million. In January 2021, May 2021, August 2021 and November 2021, our Board of Directors declared a quarterly cash dividend of $0.10 per share. Total dividend payments in 2021 were $66.0 million. In January 2021, our Board of Directors approved a repurchase program for up to $2.0 billion of common stock. In 2022, we repurchased 7.3 million shares of common stock for $752.1 million at an average price of $103.69 per share. In 2021, we repurchased 4.8 million shares of common stock for $600.0 million at an average price of $125.74 per share. The cumulative repurchases as of December 31, 2022, under this repurchase program were 12.0 million shares of common stock for $1,352.1 million at an average price per share of $112.44. In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. We intend to repurchase up to $500.0 million of common stock in 2023 subject to market conditions. While we declared a quarterly cash dividend and authorized a share repurchase program, we may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of our Board of Directors, which will consider, among other things, our earnings, capital requirements and financial condition. On May 1, 2020, we entered into a credit agreement providing a three-year, senior secured revolving credit facility of $400 million. On December 10, 2021, the credit agreement was amended to extend the senior secured revolving credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. As of February 22, 2023, we have not borrowed any funds under the credit facility. We expect operations to continue to be the primary source of cash to operate the business and meet material cash commitments, including any payments of convertible debt principal, our stock repurchase program, our quarterly dividends, our office lease obligations, contractual obligations related to inventory purchases and the construction of new facilities. We believe our cash, cash equivalents and marketable securities balance will be sufficient to pay our quarterly dividend and meet our working capital and expenditure needs for at least the next twelve months. Inflation has not had a significant long-term impact on earnings. At this time, the COVID-19 pandemic has not had an impact on our liquidity, but there is no assurance that continued impacts resulting from the pandemic will not have an adverse effect in the future. At December 31, 2022, our future contractual obligations were related to debt, leases, retirement plan liabilities, deferred tax benefits, and purchase obligations. See Note J. “Debt”, Note I. “Leases”, Note P. “Retirement Plans”, and Note S. “Income Taxes” of Notes to Consolidated Financial Statements in this Annual Report for information about those obligations, which Notes are incorporated by reference into this section. Our purchase obligations were approximately $654.8 million, with $570.3 million expected to be paid within twelve months. 40 Investing activities during 2021 provided cash of $120.4 million, due to $660.1 million and $266.5 million in proceeds from maturities and sales of marketable securities, respectively, partially offset by $661.8 million used for purchases of marketable securities, $132.5 million used for purchases of property, plant and equipment, and $12.0 million used for an investment in MachineMetrics, Inc. (“MachineMetrics”). Financing activities during 2021 used cash of $1,008.6 million, due to $600.0 million used for the repurchase of 4.8 million shares of common stock at an average price of $125.74 per share, $343.0 million used for the payments of convertible debt principal, $66.0 million used for dividend payments, and $32.3 million used for payments related to net settlement of employee stock compensation awards, partially offset by $32.7 million from the issuance of common stock under employee stock purchase and stock option plans. In January 2022, May 2022, August 2022 and November 2022, our Board of Directors declared a quarterly cash dividend of $0.11 per share. Total dividend payments in 2022 were $69.7 million. In January 2021, May 2021, August 2021 and November 2021, our Board of Directors declared a quarterly cash dividend of $0.10 per share. Total dividend payments in 2021 were $66.0 million. In January 2021, our Board of Directors approved a repurchase program for up to $2.0 billion of common stock. In 2022, we repurchased 7.3 million shares of common stock for $752.1 million at an average price of $103.69 per share. In 2021, we repurchased 4.8 million shares of common stock for $600.0 million at an average price of $125.74 per share. The cumulative repurchases as of December 31, 2022, under this repurchase program were 12.0 million shares of common stock for $1,352.1 million at an average price per share of $112.44. In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. We intend to repurchase up to $500.0 million of common stock in 2023 subject to market conditions. While we declared a quarterly cash dividend and authorized a share repurchase program, we may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of our Board of Directors, which will consider, among other things, our earnings, capital requirements and financial condition. On May 1, 2020, we entered into a credit agreement providing a three-year, senior secured revolving credit facility of $400 million. On December 10, 2021, the credit agreement was amended to extend the senior secured revolving credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. As of February 22, 2023, we have not borrowed any funds under the credit facility. We expect operations to continue to be the primary source of cash to operate the business and meet material cash commitments, including any payments of convertible debt principal, our stock repurchase program, our quarterly dividends, our office lease obligations, contractual obligations related to inventory purchases and the construction of new facilities. We believe our cash, cash equivalents and marketable securities balance will be sufficient to pay our quarterly dividend and meet our working capital and expenditure needs for at least the next twelve months. Inflation has not had a significant long-term impact on earnings. At this time, the COVID-19 pandemic has not had an impact on our liquidity, but there is no assurance that continued impacts resulting from the pandemic will not have an adverse effect in the future. At December 31, 2022, our future contractual obligations were related to debt, leases, retirement plan liabilities, deferred tax benefits, and purchase obligations. See Note J. “Debt”, Note I. “Leases”, Note P. “Retirement Plans”, and Note S. “Income Taxes” of Notes to Consolidated Financial Statements in this Annual Report for information about those obligations, which Notes are incorporated by reference into this section. Our purchase obligations were approximately $654.8 million, with $570.3 million expected to be paid within twelve months. 40 Investing activities during 2021 provided cash of $120.4 million, due to $660.1 million and $266.5 million in proceeds from maturities and sales of marketable securities, respectively, partially offset by $661.8 million used for purchases of marketable securities, $132.5 million used for purchases of property, plant and equipment, and $12.0 million used for an investment in MachineMetrics, Inc. (“MachineMetrics”). Financing activities during 2021 used cash of $1,008.6 million, due to $600.0 million used for the repurchase of 4.8 million shares of common stock at an average price of $125.74 per share, $343.0 million used for the payments of convertible debt principal, $66.0 million used for dividend payments, and $32.3 million used for payments related to net settlement of employee stock compensation awards, partially offset by $32.7 million from the issuance of common stock under employee stock purchase and stock option plans. In January 2022, May 2022, August 2022 and November 2022, our Board of Directors declared a quarterly cash dividend of $0.11 per share. Total dividend payments in 2022 were $69.7 million. In January 2021, May 2021, August 2021 and November 2021, our Board of Directors declared a quarterly cash dividend of $0.10 per share. Total dividend payments in 2021 were $66.0 million. In January 2021, our Board of Directors approved a repurchase program for up to $2.0 billion of common stock. In 2022, we repurchased 7.3 million shares of common stock for $752.1 million at an average price of $103.69 per share. In 2021, we repurchased 4.8 million shares of common stock for $600.0 million at an average price of $125.74 per share. The cumulative repurchases as of December 31, 2022, under this repurchase program were 12.0 million shares of common stock for $1,352.1 million at an average price per share of $112.44. In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. We intend to repurchase up to $500.0 million of common stock in 2023 subject to market conditions. While we declared a quarterly cash dividend and authorized a share repurchase program, we may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of our Board of Directors, which will consider, among other things, our earnings, capital requirements and financial condition. On May 1, 2020, we entered into a credit agreement providing a three-year, senior secured revolving credit facility of $400 million. On December 10, 2021, the credit agreement was amended to extend the senior secured revolving credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. As of February 22, 2023, we have not borrowed any funds under the credit facility. We expect operations to continue to be the primary source of cash to operate the business and meet material cash commitments, including any payments of convertible debt principal, our stock repurchase program, our quarterly dividends, our office lease obligations, contractual obligations related to inventory purchases and the construction of new facilities. We believe our cash, cash equivalents and marketable securities balance will be sufficient to pay our quarterly dividend and meet our working capital and expenditure needs for at least the next twelve months. Inflation has not had a significant long-term impact on earnings. At this time, the COVID-19 pandemic has not had an impact on our liquidity, but there is no assurance that continued impacts resulting from the pandemic will not have an adverse effect in the future. At December 31, 2022, our future contractual obligations were related to debt, leases, retirement plan liabilities, deferred tax benefits, and purchase obligations. See Note J. “Debt”, Note I. “Leases”, Note P. “Retirement Plans”, and Note S. “Income Taxes” of Notes to Consolidated Financial Statements in this Annual Report for information about those obligations, which Notes are incorporated by reference into this section. Our purchase obligations were approximately $654.8 million, with $570.3 million expected to be paid within twelve months. 40 Table of Contents Retirement Plans ASC 715-20, “Compensation—Retirement Benefits—Defined Benefit Plans,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715-20. The pension asset or liability represents the difference between the fair value of the pension plans’ assets and the projected benefit obligation as of December 31. For other postretirement benefit plans, the liability is the difference between the fair value of the plan’s assets and the accumulated postretirement benefit obligation as of December 31. For the year ended December 31, 2022, our pension income, which includes the U.S. Qualified Pension Plan (“U.S. Plan”), certain qualified plans for non-U.S. subsidiaries, and a U.S. Supplemental Executive Defined Benefit Plan, was approximately $19.7 million. Pension income/expense is calculated based upon a number of actuarial assumptions. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Plan assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 2.0% was an appropriate rate of return on assets to use for 2022. The December 31, 2022 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. We recognize net actuarial gains and losses and the change in the fair value of plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. We calculate the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.95% at December 31, 2022, up from 2.65% at December 31, 2021. We estimate that in 2023, we will recognize approximately $0.4 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2023 is based on a 4.95% discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. As of December 31, 2022, our pension plans had no unrecognized pension prior service cost. The assets of the U.S. Plan consist substantially of fixed income securities. U.S. Plan assets have decreased from $149.6 million at December 31, 2021 to $111.8 million at December 31, 2022, while the U.S. Plan’s liability decreased from $134.5 million at December 31, 2021 to $100.0 million at December 31, 2022. In 2022, the decrease in plan assets and plan liability was due to an increase in interest rates. In 2020, the accrued pension obligations for approximately 115 retiree participants were transferred to an insurance company and resulted in a $24.4 million reduction in the pension benefit obligation and pension assets. We recorded $2.2 million of pension actuarial loss and a settlement loss of $0.5 million related to the retiree group annuity transaction. Our funding policy is to make contributions to our pension plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2022, we made contributions of $3.2 million to the U.S. supplemental executive defined benefit pension plan, and $0.9 million to certain qualified plans for non-U.S. 41 Retirement Plans ASC 715-20, “Compensation—Retirement Benefits—Defined Benefit Plans,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715-20. The pension asset or liability represents the difference between the fair value of the pension plans’ assets and the projected benefit obligation as of December 31. For other postretirement benefit plans, the liability is the difference between the fair value of the plan’s assets and the accumulated postretirement benefit obligation as of December 31. For the year ended December 31, 2022, our pension income, which includes the U.S. Qualified Pension Plan (“U.S. Plan”), certain qualified plans for non-U.S. subsidiaries, and a U.S. Supplemental Executive Defined Benefit Plan, was approximately $19.7 million. Pension income/expense is calculated based upon a number of actuarial assumptions. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Plan assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 2.0% was an appropriate rate of return on assets to use for 2022. The December 31, 2022 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. We recognize net actuarial gains and losses and the change in the fair value of plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. We calculate the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.95% at December 31, 2022, up from 2.65% at December 31, 2021. We estimate that in 2023, we will recognize approximately $0.4 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2023 is based on a 4.95% discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. As of December 31, 2022, our pension plans had no unrecognized pension prior service cost. The assets of the U.S. Plan consist substantially of fixed income securities. U.S. Plan assets have decreased from $149.6 million at December 31, 2021 to $111.8 million at December 31, 2022, while the U.S. Plan’s liability decreased from $134.5 million at December 31, 2021 to $100.0 million at December 31, 2022. In 2022, the decrease in plan assets and plan liability was due to an increase in interest rates. In 2020, the accrued pension obligations for approximately 115 retiree participants were transferred to an insurance company and resulted in a $24.4 million reduction in the pension benefit obligation and pension assets. We recorded $2.2 million of pension actuarial loss and a settlement loss of $0.5 million related to the retiree group annuity transaction. Our funding policy is to make contributions to our pension plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2022, we made contributions of $3.2 million to the U.S. supplemental executive defined benefit pension plan, and $0.9 million to certain qualified plans for non-U.S. 41"
    },
    {
      "status": "MODIFIED",
      "current_title": "Stock Compensation Plans and Employee Stock Purchase Plan",
      "prior_title": "Stock Compensation Plans and Employee Stock Purchase Plan",
      "similarity_score": 0.794,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “Compensation-Stock Compensation.” Teradyne elects to account for forfeitures by applying an estimated forfeiture rate and recognizes compensation costs only for those stock-based compensation awards expected to vest.\"",
        "Removed sentence: \"Compensation-Stock Compensation Compensation-Stock Compensation Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows.\"",
        "Added sentence: \"Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.\"",
        "Added sentence: \"The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized.\"",
        "Added sentence: \"Teradyne performed the required assessment of positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes.” This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies.\""
      ],
      "current_body": "Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “Compensation-Stock Compensation.” Teradyne elects to account for forfeitures by applying an estimated forfeiture rate and recognizes compensation costs only for those stock-based compensation awards expected to vest. Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows. Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Teradyne performed the required assessment of positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes.” This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on its assessment, Teradyne concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized.",
      "prior_body": "Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “Compensation-Stock Compensation.” Teradyne elects to account for forfeitures by applying an estimated forfeiture rate and recognizes compensation costs only for those stock-based compensation awards expected to vest. Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Compensation-Stock Compensation Compensation-Stock Compensation Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows. Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows. Income Taxes"
    },
    {
      "status": "MODIFIED",
      "current_title": "Basis for Opinions",
      "prior_title": "Interest Rate Risk Management",
      "similarity_score": 0.775,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A.\"",
        "Reworded sentence: \"Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.\""
      ],
      "current_body": "The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.",
      "prior_body": "We are exposed to potential losses due to changes in interest rates. Our interest rate exposure is primarily related to short-term and long-term marketable securities. In order to estimate the potential loss due to interest rate risk, a fluctuation in interest rates of 25 basis points was assumed. Market risk for the short and long-term marketable securities was estimated as the potential change in the fair value resulting from a hypothetical change in interest rates for securities contained in the investment portfolio. The potential change in the fair value from changes in interest rates is immaterial as of December 31, 2022 and 2021. 44 Table of Contents http://fasb.org/us-gaap/2022#AmortizationOfIntangibleAssetshttp://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#NetIncomeLoss Item 8: Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Teradyne, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Teradyne, Inc. and its subsidiaries (the “Company”) as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income, convertible common shares and shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2022, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2022 appearing under Item 15(c) (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Changes in Accounting Principles As discussed in Note B to the consolidated financial statements, the Company changed the manner in which it accounts for convertible debt in 2022. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an 45 Item 8: Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Teradyne, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Teradyne, Inc. and its subsidiaries (the “Company”) as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income, convertible common shares and shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2022, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2022 appearing under Item 15(c) (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Changes in Accounting Principles As discussed in Note B to the consolidated financial statements, the Company changed the manner in which it accounts for convertible debt in 2022. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an 45 Item 8: Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Teradyne, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Teradyne, Inc. and its subsidiaries (the “Company”) as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income, convertible common shares and shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2022, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2022 appearing under Item 15(c) (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Changes in Accounting Principles As discussed in Note B to the consolidated financial statements, the Company changed the manner in which it accounts for convertible debt in 2022. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an 45 Item 8: Financial Statements and Supplementary Data"
    },
    {
      "status": "MODIFIED",
      "current_title": "Derivatives",
      "prior_title": "Derivatives",
      "similarity_score": 0.77,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"Derivatives Teradyne conducts business in various foreign countries, with certain transactions denominated in local currencies.\"",
        "Removed sentence: \"As a result, Teradyne is exposed to risks relating to changes in foreign currency exchange rates.\"",
        "Removed sentence: \"Teradyne’s foreign currency risk management objective is to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, and changes in its cash inflows attributable to the forecasted cash flows from certain foreign currency denominated revenues.\"",
        "Removed sentence: \"To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts.\"",
        "Removed sentence: \"The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies.\""
      ],
      "current_body": "Teradyne conducts business in various foreign countries, with certain transactions denominated in local currencies. As a result, Teradyne is exposed to risks relating to changes in foreign currency exchange rates. Teradyne’s foreign currency risk management objective is to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, and changes in its cash inflows attributable to the forecasted cash flows from certain foreign currency denominated revenues. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies. Teradyne also enters into foreign currency forward and option contracts designated as cash flow hedges to hedge the risk of changes in its cash inflows attributable to changes in foreign currency exchange rates. The cash flow hedges have maturities of less than six months and mature in the period of revenue recognition for certain products and services in backlog and forecasted to be recognized in a future period. Teradyne evaluates cash flow hedges for effectiveness at inception based on the critical terms match method. The hedges are not expected to incur any ineffectiveness however a quarterly qualitative assessment of effectiveness is done to determine if the critical terms match method remains appropriate to use. The change in fair value of the contracts is recorded in accumulated other comprehensive income (loss) and reclassified to earnings at maturity date. Teradyne does not use derivative financial instruments for speculative purposes. 59 59 Table of Contents Table of Contents Table of Contents At December 31, 2023 and 2022, to hedge certain of its local currency balance sheet assets and liabilities, 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: Net Notional Value December 31,2023 December 31, 2022 (in millions) Currency Hedged (Buy/Sell) U.S. dollar/Taiwan dollar $ 42.7 $ 29.2 U.S. dollar/Danish krone 36.0 — U.S. dollar/Japanese yen 11.0 37.1 U.S. dollar/Korean won 7.2 6.4 U.S. dollar/British pound sterling 1.5 1.2 Euro/U.S. dollar 25.3 38.4 Singapore dollar/U.S. dollar 16.6 33.5 Philippine peso/U.S. dollar 10.1 2.7 Chinese yuan/U.S. dollar 1.0 2.2 Danish krone/U.S. dollar 0.7 — Total 152.1 150.7 At December 31, 2023 and 2022, to hedge certain of its local currency balance sheet assets and liabilities, 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:",
      "prior_body": "Derivatives Teradyne conducts business in various foreign countries, with certain transactions denominated in local currencies. As a result, Teradyne is exposed to risks relating to changes in foreign currency exchange rates. Teradyne’s foreign currency risk management objective is to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, and changes in its cash inflows attributable to the forecasted cash flows from certain foreign currency denominated revenues. Teradyne conducts business in various foreign countries, with certain transactions denominated in local currencies. As a result, Teradyne is exposed to risks relating to changes in foreign currency exchange rates. Teradyne’s foreign currency risk management objective is to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, and changes in its cash inflows attributable to the forecasted cash flows from certain foreign currency denominated revenues. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies. Teradyne also enters into foreign currency forward and option contracts designated as cash flow hedges to hedge the risk of changes in its cash inflows attributable to changes in foreign currency exchange rates. The cash flow hedges have maturities of less than six months and mature in the period of revenue recognition for certain products and services in backlog and forecasted to be recognized in a future period. Teradyne evaluates cash flow hedges for effectiveness at inception based on the critical terms match method. The hedges are not expected to incur any ineffectiveness however a quarterly qualitative assessment of effectiveness is done to determine if the critical terms match method remains appropriate to use. The change in fair value of the contracts is recorded in accumulated other comprehensive income (loss) and reclassified to earnings at maturity date. Teradyne also enters into foreign currency forward and option contracts designated as cash flow hedges to hedge the risk of changes in its cash inflows attributable to changes in foreign currency exchange rates. The cash flow hedges have maturities of less than six months and mature in the period of revenue recognition for certain products and services in backlog and forecasted to be recognized in a future period. Teradyne evaluates cash flow hedges for effectiveness at inception based on the critical terms match method. The hedges are not expected to incur any ineffectiveness however a quarterly qualitative assessment of effectiveness is done to determine if the critical terms match method remains appropriate to use. The change in fair value of the contracts is recorded in accumulated other comprehensive income (loss) and reclassified to earnings at maturity date. Teradyne does not use derivative financial instruments for speculative purposes. Teradyne does not use derivative financial instruments for speculative purposes. 69 69 Table of Contents At December 31, 2022 and 2021, 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: December 31, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (37.1 ) $ — $ (37.1 ) $ (31.4 ) $ — $ (31.4 ) Taiwan Dollar (29.2 ) — (29.2 ) (35.1 ) — (35.1 ) Korean Won (6.4 ) — (6.4 ) (4.2 ) — (4.2 ) British Pound Sterling (1.2 ) — (1.2 ) (1.8 ) — (1.8 ) Euro — 38.4 38.4 — 44.9 44.9 Singapore Dollar — 33.5 33.5 — 61.9 61.9 Philippine Peso — 2.7 2.7 — 3.9 3.9 Chinese Yuan — 2.2 2.2 — 2.8 2.8 Total $ (73.9 ) $ 76.8 $ 2.9 $ (72.5 ) $ 113.5 $ 41.0 The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. At December 31, 2022 and 2021, 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: December 31, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (23.4 ) $ 61.2 $ 37.8 $ — $ — $ — Taiwan Dollar (5.5 ) 10.9 5.4 — — — Total $ (28.9 ) $ 72.1 $ 43.2 $ — $ — $ — The fair value of the outstanding cash flow hedge contracts was a loss of $3.2 million at December 31, 2022. Unrealized gains and losses on foreign currency cash flow hedge contracts are included in accumulated other comprehensive income (loss). At maturity the gains or losses associated with cash flow hedge contracts are recorded to revenue. 70 At December 31, 2022 and 2021, 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: December 31, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (37.1 ) $ — $ (37.1 ) $ (31.4 ) $ — $ (31.4 ) Taiwan Dollar (29.2 ) — (29.2 ) (35.1 ) — (35.1 ) Korean Won (6.4 ) — (6.4 ) (4.2 ) — (4.2 ) British Pound Sterling (1.2 ) — (1.2 ) (1.8 ) — (1.8 ) Euro — 38.4 38.4 — 44.9 44.9 Singapore Dollar — 33.5 33.5 — 61.9 61.9 Philippine Peso — 2.7 2.7 — 3.9 3.9 Chinese Yuan — 2.2 2.2 — 2.8 2.8 Total $ (73.9 ) $ 76.8 $ 2.9 $ (72.5 ) $ 113.5 $ 41.0 The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. At December 31, 2022 and 2021, 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: December 31, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (23.4 ) $ 61.2 $ 37.8 $ — $ — $ — Taiwan Dollar (5.5 ) 10.9 5.4 — — — Total $ (28.9 ) $ 72.1 $ 43.2 $ — $ — $ — The fair value of the outstanding cash flow hedge contracts was a loss of $3.2 million at December 31, 2022. Unrealized gains and losses on foreign currency cash flow hedge contracts are included in accumulated other comprehensive income (loss). At maturity the gains or losses associated with cash flow hedge contracts are recorded to revenue. 70 At December 31, 2022 and 2021, 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: At December 31, 2022 and 2021, 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: December 31, 2022"
    },
    {
      "status": "MODIFIED",
      "current_title": "Our operations may be adversely impacted if our outsourced contract manufacturers or service providers fail to perform.",
      "prior_title": "Our operations may be adversely impacted if our outsourced contract manufacturers or service providers fail to perform.",
      "similarity_score": 0.764,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"(“Flex”) to manufacture and test our FLEX and J750 family of products from its facility in Malaysia; Plexus Corp.\"",
        "Removed sentence: \"The Flex facility located in China may be impacted by the ongoing trade dispute between the United States and China, by regulations implemented by the United States or China, or disruption caused by health pandemics, such as the coronavirus.\"",
        "Reworded sentence: \"Their presence in foreign countries also increases the risk they could be exposed to political and cybersecurity risk.\"",
        "Removed sentence: \"Our business may suffer if we are unable to attract and retain key employees.\"",
        "Removed sentence: \"Competition for employees with skills we require is intense in the high technology industry.\""
      ],
      "current_body": "We depend on Flex Ltd. (“Flex”) to manufacture and test our FLEX and J750 family of products from its facility in Malaysia; Plexus Corp. (“Plexus”) to manufacture and test our Magnum products from its facilities in Malaysia and also Thailand and ETS family of products from its facility in Malaysia; SAM Meerkat to manufacture and test our storage test family of products from its facilities in Malaysia and Thailand and on other contract manufacturers to manufacture other products. If for any reason these contract manufacturers cannot provide us with these products in a timely fashion, or at all, we may not be able to sell these products to our customers until we enter a similar arrangement with an alternative contract manufacturer. If we experience a problem with our supply of products from Flex, Plexus, SAM Meerkat, or our other contract manufacturers, it may take us significant time to either manufacture the product or find an alternate contract manufacturer, which could result in substantial expense and disruption to our business. We have also outsourced certain general and administrative functions to reputable service providers, many of which are in foreign countries, sometimes impacting communication with them because of language and time differences. Their presence in foreign countries also increases the risk they could be exposed to political and cybersecurity risk. Additionally, there may be difficulties encountered in coordinating the outsourced operations with existing functions and operations. If we fail in successfully coordinating and managing the outsourced service providers, it may cause an adverse effect on our operations which could have a material adverse effect on our business, results of operations or financial condition.",
      "prior_body": "We depend on Flex Ltd. (“Flex”) to manufacture and test our FLEX and J750 family of products from its facilities in China and, starting in 2022, also Malaysia; Plexus Corp. (“Plexus”) to manufacture and test our 20 Table of Contents Magnum products from its facilities in Malaysia and, starting in 2023, also Thailand and ETS family of products from its facility in Malaysia; SAM Meerkat to manufacture and test our storage test family of products from its facilities in Malaysia and Thailand and on other contract manufacturers to manufacture other products. If for any reason these contract manufacturers cannot provide us with these products in a timely fashion, or at all, we may not be able to sell these products to our customers until we enter a similar arrangement with an alternative contract manufacturer. The Flex facility located in China may be impacted by the ongoing trade dispute between the United States and China, by regulations implemented by the United States or China, or disruption caused by health pandemics, such as the coronavirus. If we experience a problem with our supply of products from Flex, Plexus, SAM Meerkat, or our other contract manufacturers, it may take us significant time to either manufacture the product or find an alternate contract manufacturer, which could result in substantial expense and disruption to our business. We have also outsourced certain general and administrative functions to reputable service providers, many of which are in foreign countries, sometimes impacting communication with them because of language and time differences. Their presence in foreign countries also increases the risk they could be exposed to political risk. Additionally, there may be difficulties encountered in coordinating the outsourced operations with existing functions and operations. If we fail in successfully coordinating and managing the outsourced service providers, it may cause an adverse effect on our operations which could have a material adverse effect on our business, results of operations or financial condition. Our business may suffer if we are unable to attract and retain key employees. Competition for employees with skills we require is intense in the high technology industry. We expect intense competition for employees to continue in 2023. Our success will depend on our ability to attract and retain key technical employees. The loss of one or more key or other employees, a decrease in our ability to attract additional qualified employees, or the delay in hiring key personnel could each have a material adverse effect on our business, results of operations or financial condition. Our operations, and the operations of our customers and suppliers, are subject to risks of natural catastrophic events, severe weather, widespread health epidemics, acts of war, terrorist attacks and the threat of domestic and international terrorist attacks, any one of which could result in cancellation of orders, delays in deliveries or other business activities, or loss of customers and could negatively affect our business and results of operations. Our business is international in nature, with our sales, service and administrative personnel and our customers and suppliers located in numerous countries throughout the world. Our operations, and those of our customers and suppliers, are subject to disruption for a variety of reasons, including work stoppages, acts of war, terrorism, health epidemics, fires, earthquakes, hurricanes, typhoons, volcanic eruptions, energy shortages, telecommunication failures, tsunamis, flooding or other natural disasters. Such disruption could materially increase our costs and expenses as well as cause delays in, among other things, shipments of products to our customers, our ability to perform services requested by our customers, or the installation and acceptance of our products at customer sites. Any of these conditions could have a material adverse effect on our business, financial condition or results of operations. Global climate change can result in natural disasters occurring more frequently, with greater intensity and with less predictability. For example, in December 2021, our operations in Cebu, Philippines experienced a devastating typhoon. Our employees in Cebu succeeded in restoring most of our operations within days despite the severity of the damage in the region. We have offered support services to many of our employees impacted by the typhoon and have incurred additional costs to maintain our operations following the disaster. The long-term effects of climate change on the global economy and the semiconductor industry in particular are unclear but could be severe. 21 Magnum products from its facilities in Malaysia and, starting in 2023, also Thailand and ETS family of products from its facility in Malaysia; SAM Meerkat to manufacture and test our storage test family of products from its facilities in Malaysia and Thailand and on other contract manufacturers to manufacture other products. If for any reason these contract manufacturers cannot provide us with these products in a timely fashion, or at all, we may not be able to sell these products to our customers until we enter a similar arrangement with an alternative contract manufacturer. The Flex facility located in China may be impacted by the ongoing trade dispute between the United States and China, by regulations implemented by the United States or China, or disruption caused by health pandemics, such as the coronavirus. If we experience a problem with our supply of products from Flex, Plexus, SAM Meerkat, or our other contract manufacturers, it may take us significant time to either manufacture the product or find an alternate contract manufacturer, which could result in substantial expense and disruption to our business. We have also outsourced certain general and administrative functions to reputable service providers, many of which are in foreign countries, sometimes impacting communication with them because of language and time differences. Their presence in foreign countries also increases the risk they could be exposed to political risk. Additionally, there may be difficulties encountered in coordinating the outsourced operations with existing functions and operations. If we fail in successfully coordinating and managing the outsourced service providers, it may cause an adverse effect on our operations which could have a material adverse effect on our business, results of operations or financial condition. Our business may suffer if we are unable to attract and retain key employees. Competition for employees with skills we require is intense in the high technology industry. We expect intense competition for employees to continue in 2023. Our success will depend on our ability to attract and retain key technical employees. The loss of one or more key or other employees, a decrease in our ability to attract additional qualified employees, or the delay in hiring key personnel could each have a material adverse effect on our business, results of operations or financial condition. Our operations, and the operations of our customers and suppliers, are subject to risks of natural catastrophic events, severe weather, widespread health epidemics, acts of war, terrorist attacks and the threat of domestic and international terrorist attacks, any one of which could result in cancellation of orders, delays in deliveries or other business activities, or loss of customers and could negatively affect our business and results of operations. Our business is international in nature, with our sales, service and administrative personnel and our customers and suppliers located in numerous countries throughout the world. Our operations, and those of our customers and suppliers, are subject to disruption for a variety of reasons, including work stoppages, acts of war, terrorism, health epidemics, fires, earthquakes, hurricanes, typhoons, volcanic eruptions, energy shortages, telecommunication failures, tsunamis, flooding or other natural disasters. Such disruption could materially increase our costs and expenses as well as cause delays in, among other things, shipments of products to our customers, our ability to perform services requested by our customers, or the installation and acceptance of our products at customer sites. Any of these conditions could have a material adverse effect on our business, financial condition or results of operations. Global climate change can result in natural disasters occurring more frequently, with greater intensity and with less predictability. For example, in December 2021, our operations in Cebu, Philippines experienced a devastating typhoon. Our employees in Cebu succeeded in restoring most of our operations within days despite the severity of the damage in the region. We have offered support services to many of our employees impacted by the typhoon and have incurred additional costs to maintain our operations following the disaster. The long-term effects of climate change on the global economy and the semiconductor industry in particular are unclear but could be severe. 21 Magnum products from its facilities in Malaysia and, starting in 2023, also Thailand and ETS family of products from its facility in Malaysia; SAM Meerkat to manufacture and test our storage test family of products from its facilities in Malaysia and Thailand and on other contract manufacturers to manufacture other products. If for any reason these contract manufacturers cannot provide us with these products in a timely fashion, or at all, we may not be able to sell these products to our customers until we enter a similar arrangement with an alternative contract manufacturer. The Flex facility located in China may be impacted by the ongoing trade dispute between the United States and China, by regulations implemented by the United States or China, or disruption caused by health pandemics, such as the coronavirus. If we experience a problem with our supply of products from Flex, Plexus, SAM Meerkat, or our other contract manufacturers, it may take us significant time to either manufacture the product or find an alternate contract manufacturer, which could result in substantial expense and disruption to our business. We have also outsourced certain general and administrative functions to reputable service providers, many of which are in foreign countries, sometimes impacting communication with them because of language and time differences. Their presence in foreign countries also increases the risk they could be exposed to political risk. Additionally, there may be difficulties encountered in coordinating the outsourced operations with existing functions and operations. If we fail in successfully coordinating and managing the outsourced service providers, it may cause an adverse effect on our operations which could have a material adverse effect on our business, results of operations or financial condition."
    },
    {
      "status": "MODIFIED",
      "current_title": "Engineering and Development Costs",
      "prior_title": "Engineering and Development Costs",
      "similarity_score": 0.762,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"Engineering and Development Costs Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort.\"",
        "Removed sentence: \"Software development costs incurred prior to the establishment of technological feasibility are charged to expense.\"",
        "Removed sentence: \"Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers.\"",
        "Removed sentence: \"To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material.\"",
        "Removed sentence: \"Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring engineering charges related to product design, allocated facility costs, depreciation, and tooling costs.\""
      ],
      "current_body": "Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring engineering charges related to product design, allocated facility costs, depreciation, and tooling costs. Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “Compensation-Stock Compensation.” Teradyne elects to account for forfeitures by applying an estimated forfeiture rate and recognizes compensation costs only for those stock-based compensation awards expected to vest. Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows.",
      "prior_body": "Engineering and Development Costs Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring engineering charges related to product design, allocated facility costs, depreciation, and tooling costs. Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring engineering charges related to product design, allocated facility costs, depreciation, and tooling costs. Stock Compensation Plans and Employee Stock Purchase Plan"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in millions)",
      "prior_title": "Gross Profit",
      "similarity_score": 0.742,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Product gross profit $ 1,213.4 $ 1,549.0 $ (335.6 ) Percent of product revenues 57.9 % 59.8 % (1.9 ) Service gross profit $ 323.4 $ 318.1 $ 5.3 Percent of service revenues 55.7 % 56.5 % (0.8 ) Product revenues gross profit percentage decreased by 1.9 points, primarily due to lower volume, higher spending to strengthen our supply chain, and product mix.\"",
        "Added sentence: \"During the year ended December 31, 2023, we recorded an inventory provision of $28.4 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products.\"",
        "Added sentence: \"Of the $28.4 million of total excess and obsolete provisions, $22.5 million was related to Semiconductor Test, $2.3 million was related to Robotics, $1.9 million was related to System Test, and $1.7 million was related to Wireless Test.\"",
        "Reworded sentence: \"30 30 Table of Contents Table of Contents Table of Contents During the years ended December 31, 2023 and 2022, we scrapped $26.4 million and $8.8 million of inventory, respectively, and sold $5.2 million and $1.8 million of previously written-down or written-off inventory, respectively.\"",
        "Removed sentence: \"Selling and Administrative Selling and administrative expenses were as follows: 2022 2021 2021-2022Change (in millions) Selling and administrative $ 558.1 $ 547.6 $ 10.5 Percent of total revenues 17.7 % 14.8 % The increase of $10.5 million in selling and administrative expenses was primarily driven by increase in headcount and greater spending in Robotics, partially offset by lower variable compensation.\""
      ],
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022",
      "prior_body": "2021-2022 Gross profit Percent of total revenues Gross profit as a percent of total revenues decreased by 0.4 points, primarily due to higher service costs partially offset by favorable product mix and lower variable compensation. The breakout of product and service gross profit was as follows: 2021-2022 Product gross profit Percent of product revenues Service gross profit Percent of service revenues Service revenues gross profit percentage decreased 4.8% primarily due to lower margins in Semiconductor Test driven by an increase in headcount. We assess the carrying value of our inventory on a quarterly basis by estimating future demand and comparing that demand against on-hand and on-order inventory positions. Forecasted revenues information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. During the year ended December 31, 2022, we recorded an inventory provision of $31.5 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $31.5 million of total excess and obsolete provisions, $21.5 million was related to Semiconductor Test, $4.6 million was related to Wireless Test, $3.7 million was related to Robotics, and $1.7 million was related to System Test. 36 Table of Contents During the year ended December 31, 2021, we recorded an inventory provision of $15.5 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $15.5 million of total excess and obsolete provisions, $6.7 million was related to Semiconductor Test, $6.4 million was related to Robotics, $1.8 million was related to Wireless Test, and $0.6 million was related to System Test. During the years ended December 31, 2022 and 2021, we scrapped $8.8 million and $10.9 million of inventory, respectively, and sold $1.8 million and $2.5 million of previously written-down or written-off inventory, respectively. As of December 31, 2022, we had inventory related reserves for amounts which had been written-down or written-off totaling $136.8 million. We have no pre-determined timeline to scrap the remaining inventory. Selling and Administrative Selling and administrative expenses were as follows: 2022 2021 2021-2022Change (in millions) Selling and administrative $ 558.1 $ 547.6 $ 10.5 Percent of total revenues 17.7 % 14.8 % The increase of $10.5 million in selling and administrative expenses was primarily driven by increase in headcount and greater spending in Robotics, partially offset by lower variable compensation. Engineering and Development Engineering and development expenses were as follows: 2022 2021 2021-2022Change (in millions) Engineering and development $ 440.6 $ 427.6 $ 13.0 Percent of total revenues 14.0 % 11.5 % The increase of $13.0 million in engineering and development expenses was primarily driven by increase in headcount and greater spending in Robotics and Semiconductor Test, partially offset by lower variable compensation. Restructuring and Other During the year ended December 31, 2022, we recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of an asset. During the year ended December 31, 2021, we recorded a charge of $12.0 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, $1.5 million of severance charges primarily in Robotics, $0.5 million of acquisition related compensation and expenses and $2.5 million for an increase in environmental and legal liabilities, offset by a $7.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability. 37 During the year ended December 31, 2021, we recorded an inventory provision of $15.5 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $15.5 million of total excess and obsolete provisions, $6.7 million was related to Semiconductor Test, $6.4 million was related to Robotics, $1.8 million was related to Wireless Test, and $0.6 million was related to System Test. During the years ended December 31, 2022 and 2021, we scrapped $8.8 million and $10.9 million of inventory, respectively, and sold $1.8 million and $2.5 million of previously written-down or written-off inventory, respectively. As of December 31, 2022, we had inventory related reserves for amounts which had been written-down or written-off totaling $136.8 million. We have no pre-determined timeline to scrap the remaining inventory. Selling and Administrative Selling and administrative expenses were as follows: 2022 2021 2021-2022Change (in millions) Selling and administrative $ 558.1 $ 547.6 $ 10.5 Percent of total revenues 17.7 % 14.8 % The increase of $10.5 million in selling and administrative expenses was primarily driven by increase in headcount and greater spending in Robotics, partially offset by lower variable compensation. Engineering and Development Engineering and development expenses were as follows: 2022 2021 2021-2022Change (in millions) Engineering and development $ 440.6 $ 427.6 $ 13.0 Percent of total revenues 14.0 % 11.5 % The increase of $13.0 million in engineering and development expenses was primarily driven by increase in headcount and greater spending in Robotics and Semiconductor Test, partially offset by lower variable compensation. Restructuring and Other During the year ended December 31, 2022, we recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of an asset. During the year ended December 31, 2021, we recorded a charge of $12.0 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, $1.5 million of severance charges primarily in Robotics, $0.5 million of acquisition related compensation and expenses and $2.5 million for an increase in environmental and legal liabilities, offset by a $7.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability. 37 During the year ended December 31, 2021, we recorded an inventory provision of $15.5 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $15.5 million of total excess and obsolete provisions, $6.7 million was related to Semiconductor Test, $6.4 million was related to Robotics, $1.8 million was related to Wireless Test, and $0.6 million was related to System Test. During the years ended December 31, 2022 and 2021, we scrapped $8.8 million and $10.9 million of inventory, respectively, and sold $1.8 million and $2.5 million of previously written-down or written-off inventory, respectively. As of December 31, 2022, we had inventory related reserves for amounts which had been written-down or written-off totaling $136.8 million. We have no pre-determined timeline to scrap the remaining inventory."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "Year Ended December 31, 2022",
      "similarity_score": 0.738,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Cash flows from operating activities: Net income $ 448,752 $ 715,501 $ 1,014,589 Adjustments to reconcile net income from operations to net cash provided by operating activities: Depreciation 92,118 90,763 91,073 Stock-based compensation 57,682 48,228 45,643 Provision for excess and obsolete inventory 28,358 31,452 15,475 Amortization 18,768 19,912 34,412 Retirement plans actuarial losses (gains) 2,703 (25,584 ) (2,217 ) Deferred taxes (37,642 ) (38,693 ) (17,305 ) (Gains) losses on investments (14,915 ) 9,985 (6,410 ) Gains on sale of asset — (3,410 ) — Loss on convertible debt conversion — — 28,828 Contingent consideration fair value adjustment — — (7,227 ) Other (955 ) 2,353 271 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable 70,977 50,628 (57,778 ) Inventories 5,327 (80,809 ) 6,495 Prepayments and other assets (43,101 ) (140,713 ) (175,846 ) Accounts payable and other accrued expenses 46,782 (60,507 ) 129,499 Deferred revenue and customer advances (57,210 ) (6,233 ) 9,873 Retirement plan contributions (5,492 ) (5,116 ) (5,405 ) Income taxes (26,921 ) (29,834 ) (5,604 ) Net cash provided by operating activities 585,231 577,923 1,098,366 Cash flows from investing activities: Purchases of property, plant and equipment (159,642 ) (163,249 ) (132,472 ) Purchases of marketable securities (161,906 ) (287,409 ) (661,781 ) Proceeds from maturities of marketable securities 85,042 222,941 660,148 Proceeds from sales of marketable securities 61,401 268,058 266,466 Proceeds from insurance 460 — — Issuance of convertible loan (5,000 ) — — Proceeds from sale of asset — 3,410 — Purchase of investment and acquisition of business — — (12,000 ) Net cash (used for) provided by investing activities (179,645 ) 43,751 120,361 Cash flows from financing activities: Repurchase of common stock (397,241 ) (752,082 ) (600,000 ) Dividend payments (67,878 ) (69,711 ) (65,977 ) Payments of convertible debt principal (50,264 ) (66,759 ) (342,990 ) Payments related to net settlement of employee stock compensation awards (20,788 ) (33,170 ) (32,303 ) Issuance of common stock under stock purchase and stock option plans 34,259 28,733 32,686 Net cash used for financing activities (501,912 ) (892,989 ) (1,008,584 ) Effects of exchange rate changes on cash and cash equivalents (876 ) 3,889 (2,065 ) (Decrease) increase in cash and cash equivalents (97,202 ) (267,426 ) 208,078 Cash and cash equivalents at beginning of year 854,773 1,122,199 914,121 Cash and cash equivalents at end of year $ 757,571 $ 854,773 $ 1,122,199 Supplementary disclosure of cash flow information: Cash paid for: Interest $ 296 $ 1,498 $ 4,236 Income taxes $ 140,239 $ 193,246 $ 172,134 Non-cash investing activities: Capital expenditures incurred but not yet paid: $ 2,735 $ 1,826 $ 1,973 The accompanying notes are an integral part of the consolidated financial statements.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Year Ended December 31, 2022 The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 51 51 1 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2022 2021 2020 (in thousands) Cash flows from operating activities: Net income $ 715,501 $ 1,014,589 $ 784,147 Adjustments to reconcile net income from operations to net cash provided by operating activities: Depreciation 90,763 91,073 80,119 Stock-based compensation 48,228 45,643 44,906 Provision for excess and obsolete inventory 31,452 15,475 17,534 Amortization 19,912 34,412 46,624 Deferred taxes (38,693 ) (17,305 ) (15,688 ) Retirement plans actuarial (gains) losses (25,584 ) (2,217 ) 10,284 Losses (gains) on investments 9,985 (6,410 ) (7,898 ) Gains on sale of asset (3,410 ) — — Loss on convertible debt conversion — 28,828 — Contingent consideration fair value adjustment — (7,227 ) (23,271 ) Other 2,353 271 1,557 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable 50,628 (57,778 ) (129,451 ) Inventories (80,809 ) 6,495 (8,438 ) Prepayments and other assets (140,713 ) (175,846 ) (64,418 ) Accounts payable and other accrued expenses (60,507 ) 129,499 73,167 Deferred revenue and customer advances (6,233 ) 9,873 39,974 Retirement plan contributions (5,116 ) (5,405 ) (5,382 ) Income taxes (29,834 ) (5,604 ) 25,169 Net cash provided by operating activities 577,923 1,098,366 868,935 Cash flows from investing activities: Purchases of property, plant and equipment (163,249 ) (132,472 ) (184,977 ) Purchases of marketable securities (287,409 ) (661,781 ) (900,196 ) Proceeds from maturities of marketable securities 222,941 660,148 479,678 Proceeds from sales of marketable securities 268,058 266,466 35,006 Proceeds from sale of asset 3,410 — — Purchase of investment and acquisition of business — (12,000 ) 149 Proceeds from insurance — — 546 Net cash provided by (used for) investing activities 43,751 120,361 (569,794 ) Cash flows from financing activities: Repurchase of common stock (752,082 ) (600,000 ) (88,465 ) Payments of convertible debt principal (66,759 ) (342,990 ) — Dividend payments (69,711 ) (65,977 ) (66,482 ) Payments related to net settlement of employee stock compensation awards (33,170 ) (32,303 ) (23,014 ) Issuance of common stock under stock purchase and stock option plans 28,733 32,686 28,527 Payments of contingent consideration — — (8,852 ) Net cash used for financing activities (892,989 ) (1,008,584 ) (158,286 ) Effects of exchange rate changes on cash and cash equivalents 3,889 (2,065 ) (658 ) (Decrease) increase in cash and cash equivalents (267,426 ) 208,078 140,197 Cash and cash equivalents at beginning of year 1,122,199 914,121 773,924 Cash and cash equivalents at end of year $ 854,773 $ 1,122,199 $ 914,121 Supplementary disclosure of cash flow information: Cash paid for: Interest $ 1,498 $ 4,236 $ 6,435 Income taxes $ 193,246 $ 172,134 $ 106,577 Non-cash investing activities: Capital expenditures incurred but not yet paid: $ 1,826 $ 1,973 $ 3,666 The accompanying notes are an integral part of the consolidated financial statements. 52 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2022 2021 2020 (in thousands) Cash flows from operating activities: Net income $ 715,501 $ 1,014,589 $ 784,147 Adjustments to reconcile net income from operations to net cash provided by operating activities: Depreciation 90,763 91,073 80,119 Stock-based compensation 48,228 45,643 44,906 Provision for excess and obsolete inventory 31,452 15,475 17,534 Amortization 19,912 34,412 46,624 Deferred taxes (38,693 ) (17,305 ) (15,688 ) Retirement plans actuarial (gains) losses (25,584 ) (2,217 ) 10,284 Losses (gains) on investments 9,985 (6,410 ) (7,898 ) Gains on sale of asset (3,410 ) — — Loss on convertible debt conversion — 28,828 — Contingent consideration fair value adjustment — (7,227 ) (23,271 ) Other 2,353 271 1,557 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable 50,628 (57,778 ) (129,451 ) Inventories (80,809 ) 6,495 (8,438 ) Prepayments and other assets (140,713 ) (175,846 ) (64,418 ) Accounts payable and other accrued expenses (60,507 ) 129,499 73,167 Deferred revenue and customer advances (6,233 ) 9,873 39,974 Retirement plan contributions (5,116 ) (5,405 ) (5,382 ) Income taxes (29,834 ) (5,604 ) 25,169 Net cash provided by operating activities 577,923 1,098,366 868,935 Cash flows from investing activities: Purchases of property, plant and equipment (163,249 ) (132,472 ) (184,977 ) Purchases of marketable securities (287,409 ) (661,781 ) (900,196 ) Proceeds from maturities of marketable securities 222,941 660,148 479,678 Proceeds from sales of marketable securities 268,058 266,466 35,006 Proceeds from sale of asset 3,410 — — Purchase of investment and acquisition of business — (12,000 ) 149 Proceeds from insurance — — 546 Net cash provided by (used for) investing activities 43,751 120,361 (569,794 ) Cash flows from financing activities: Repurchase of common stock (752,082 ) (600,000 ) (88,465 ) Payments of convertible debt principal (66,759 ) (342,990 ) — Dividend payments (69,711 ) (65,977 ) (66,482 ) Payments related to net settlement of employee stock compensation awards (33,170 ) (32,303 ) (23,014 ) Issuance of common stock under stock purchase and stock option plans 28,733 32,686 28,527 Payments of contingent consideration — — (8,852 ) Net cash used for financing activities (892,989 ) (1,008,584 ) (158,286 ) Effects of exchange rate changes on cash and cash equivalents 3,889 (2,065 ) (658 ) (Decrease) increase in cash and cash equivalents (267,426 ) 208,078 140,197 Cash and cash equivalents at beginning of year 1,122,199 914,121 773,924 Cash and cash equivalents at end of year $ 854,773 $ 1,122,199 $ 914,121 Supplementary disclosure of cash flow information: Cash paid for: Interest $ 1,498 $ 4,236 $ 6,435 Income taxes $ 193,246 $ 172,134 $ 106,577 Non-cash investing activities: Capital expenditures incurred but not yet paid: $ 1,826 $ 1,973 $ 3,666 The accompanying notes are an integral part of the consolidated financial statements. 52 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.729,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Due within one year $ 62,385 $ 62,154 Due after 1 year through 5 years 23,703 23,319 Due after 5 years through 10 years 6,049 5,735 Due after 10 years 39,159 32,475 Total $ 131,296 $ 123,683 Contractual maturities of investments in available-for-sale marketable securities held at December 31, 2023 exclude debt mutual funds with the fair market value of $8.8 million as they do not have a contractual maturity date.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.728,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 733 $ 86 Foreign exchange option contracts Other current assets 17,364 — Foreign exchange forward contracts Other current liabilities (2,545 ) (990 ) Derivatives designated as hedging instruments: Foreign exchange forward contracts Other current assets 648 — Foreign exchange option contracts Other current liabilities — (3,225 ) Total derivatives $ 16,200 $ (4,129 ) The following table summarizes the effect of derivative instruments in the statements of operations recognized for the years ended December 31, 2023, 2022, and 2021: Location of (Gains) Losses Recognized in Statementof Operations December 31,2023 December 31,2022 December 31,2021 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) Other (income) expense, net $ (1,843 ) $ (2,482 ) $ 6,488 Foreign exchange option contracts Other (income) expense, net (7,464 ) — — Derivatives designated as hedging instruments: Foreign exchange forward and option contracts Revenue (3,127 ) (251 ) — Total derivatives $ (12,434 ) $ (2,733 ) $ 6,488 (1)The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Accounts Receivable and Allowance for Credit Losses",
      "prior_title": "Accounts Receivable and Allowance for Doubtful Accounts",
      "similarity_score": 0.72,
      "confidence": "medium",
      "key_changes": [
        "Removed sentence: \"Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest.\"",
        "Removed sentence: \"Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments.\"",
        "Removed sentence: \"Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness.\"",
        "Removed sentence: \"Account balances are written off against the allowance when it is determined the receivable will not be recovered.\"",
        "Reworded sentence: \"Teradyne maintains allowances for estimated losses resulting from the inability of its customers to make required payments.\""
      ],
      "current_body": "Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Teradyne maintains allowances for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for credit losses are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s creditworthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $243.5 million and $93.9 million during 2023 and 2022, respectively. Factoring fees for the sales of receivables are recorded in interest expense and are not material. 47 47 Table of Contents Table of Contents Table of Contents Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. On a quarterly basis, Teradyne uses consistent methodologies to evaluate all inventories for net realizable value. Teradyne records a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process. The inventory valuation is based upon assumptions about future demand, product mix and possible alternative uses.",
      "prior_body": "Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $93.9 million and $111.3 million during 2022 and 2021, respectively. Factoring fees for the sales of receivables are recorded in interest expense and are not material. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $93.9 million and $111.3 million during 2022 and 2021, respectively. Factoring fees for the sales of receivables are recorded in interest expense and are not material. Inventories"
    },
    {
      "status": "MODIFIED",
      "current_title": "We have incurred indebtedness and may incur additional indebtedness.",
      "prior_title": "We have incurred indebtedness and may incur additional indebtedness.",
      "similarity_score": 0.708,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"On May 1, 2020, we entered into a three-year, senior secured revolving credit facility of up to $400.0 million.\"",
        "Reworded sentence: \"As of February 22, 2024, we have not borrowed any funds under this credit facility.\""
      ],
      "current_body": "On May 1, 2020, we entered into a three-year, senior secured revolving credit facility of up to $400.0 million. On December 10, 2021, the credit agreement was amended to extend the maturity date of the credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. The amended credit agreement provides that, subject to customary conditions, we may seek to obtain from existing or new lenders the available incremental amount under the credit facility, not to exceed the greater of $200.0 million or 15% of consolidated EBIDTA. We could borrow funds under this credit facility at any time for general corporate purposes and working capital. As of February 22, 2024, we have not borrowed any funds under this credit facility. Our outstanding and any additional indebtedness, among other things, could: •make it difficult to make payments on this indebtedness and our other obligations; make it difficult to make payments on this indebtedness and our other obligations; •make it difficult to obtain any necessary future financing for working capital, capital expenditures, debt service requirements or other purposes; make it difficult to obtain any necessary future financing for working capital, capital expenditures, debt service requirements or other purposes; •require the dedication of a substantial portion of any cash flows from operations to service for indebtedness, thereby reducing the amount of cash flows available for other purposes, including capital expenditures, and require the dedication of a substantial portion of any cash flows from operations to service for indebtedness, thereby reducing the amount of cash flows available for other purposes, including capital expenditures, and •limit our flexibility in planning for or reacting to changes in our business and the industries in which we complete. limit our flexibility in planning for or reacting to changes in our business and the industries in which we complete.",
      "prior_body": "On December 12, 2016, we completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost, after being partially offset by proceeds from the sale of the warrants, of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of our common stock. Holders of the Notes may require us to repurchase the Notes upon the occurrence of certain fundamental changes involving us or the holders may elect to convert into shares of our common stock. As of February 22, 2023, one hundred and twenty four holders had converted $424.9 million worth of notes. 17 Table of Contents On May 1, 2020, we entered into a three-year, senior secured revolving credit facility of up to $400.0 million. On December 10, 2021, the credit agreement was amended to extend the maturity date of the credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. The amended credit agreement provides that, subject to customary conditions, we may seek to obtain from existing or new lenders the available incremental amount under the credit facility, not to exceed the greater of $200.0 million or 15% of consolidated EBIDTA. We could borrow funds under this credit facility at any time for general corporate purposes and working capital. As of February 22, 2023, we have not borrowed any funds under this credit facility. The issuance of the Notes and any additional indebtedness, among other things, could: • make it difficult to make payments on this indebtedness and our other obligations; • make it difficult to obtain any necessary future financing for working capital, capital expenditures, debt service requirements or other purposes; • require the dedication of a substantial portion of any cash flows from operations to service for indebtedness, thereby reducing the amount of cash flows available for other purposes, including capital expenditures; and • limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete. Restrictive covenants in the agreement governing our senior secured revolving credit facility may restrict our ability to pursue business strategies. The agreement governing our senior secured revolving credit facility limits our ability, among other things, to incur additional secured indebtedness; sell, transfer, license or dispose of assets; consolidate or merge; enter into transactions with our affiliates; and incur liens. In addition, our senior secured revolving credit facility contains financial and other restrictive covenants that limit our ability to engage in activities that may be in our long-term best interest, such as, subject to permitted exceptions, making capital expenditures in excess of certain thresholds, making investments, loans and other advances, and prepaying any additional indebtedness while our indebtedness under our senior secured revolving credit facility is outstanding. Our failure to comply with financial and other restrictive covenants could result in an event of default, which if not cured or waived, could result in the lenders requiring immediate payment of all outstanding borrowings or foreclosing on collateral pledged to them to secure the indebtedness. Our convertible note hedge and warrant transactions could impact the value of our stock. Concurrent with the offering of the Notes, we entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.46. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 1.6 million shares of our common stock. On November 4, 2021, we made an irrevocable election under the indenture to require the principal portion of the remaining Notes to be settled in cash. Separately and concurrent with the pricing of the Notes, we entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which we sold net-share-settled (or, at our election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of our common stock. The strike price of the warrants is $39.48 per share. The Warrant Transactions could have a dilutive effect to our common stock to the extent that the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. 18 On May 1, 2020, we entered into a three-year, senior secured revolving credit facility of up to $400.0 million. On December 10, 2021, the credit agreement was amended to extend the maturity date of the credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. The amended credit agreement provides that, subject to customary conditions, we may seek to obtain from existing or new lenders the available incremental amount under the credit facility, not to exceed the greater of $200.0 million or 15% of consolidated EBIDTA. We could borrow funds under this credit facility at any time for general corporate purposes and working capital. As of February 22, 2023, we have not borrowed any funds under this credit facility. The issuance of the Notes and any additional indebtedness, among other things, could: • make it difficult to make payments on this indebtedness and our other obligations; • make it difficult to obtain any necessary future financing for working capital, capital expenditures, debt service requirements or other purposes; • require the dedication of a substantial portion of any cash flows from operations to service for indebtedness, thereby reducing the amount of cash flows available for other purposes, including capital expenditures; and • limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete. Restrictive covenants in the agreement governing our senior secured revolving credit facility may restrict our ability to pursue business strategies. The agreement governing our senior secured revolving credit facility limits our ability, among other things, to incur additional secured indebtedness; sell, transfer, license or dispose of assets; consolidate or merge; enter into transactions with our affiliates; and incur liens. In addition, our senior secured revolving credit facility contains financial and other restrictive covenants that limit our ability to engage in activities that may be in our long-term best interest, such as, subject to permitted exceptions, making capital expenditures in excess of certain thresholds, making investments, loans and other advances, and prepaying any additional indebtedness while our indebtedness under our senior secured revolving credit facility is outstanding. Our failure to comply with financial and other restrictive covenants could result in an event of default, which if not cured or waived, could result in the lenders requiring immediate payment of all outstanding borrowings or foreclosing on collateral pledged to them to secure the indebtedness. Our convertible note hedge and warrant transactions could impact the value of our stock. Concurrent with the offering of the Notes, we entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.46. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 1.6 million shares of our common stock. On November 4, 2021, we made an irrevocable election under the indenture to require the principal portion of the remaining Notes to be settled in cash. Separately and concurrent with the pricing of the Notes, we entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which we sold net-share-settled (or, at our election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of our common stock. The strike price of the warrants is $39.48 per share. The Warrant Transactions could have a dilutive effect to our common stock to the extent that the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. 18 On May 1, 2020, we entered into a three-year, senior secured revolving credit facility of up to $400.0 million. On December 10, 2021, the credit agreement was amended to extend the maturity date of the credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. The amended credit agreement provides that, subject to customary conditions, we may seek to obtain from existing or new lenders the available incremental amount under the credit facility, not to exceed the greater of $200.0 million or 15% of consolidated EBIDTA. We could borrow funds under this credit facility at any time for general corporate purposes and working capital. As of February 22, 2023, we have not borrowed any funds under this credit facility. The issuance of the Notes and any additional indebtedness, among other things, could: make it difficult to make payments on this indebtedness and our other obligations; make it difficult to obtain any necessary future financing for working capital, capital expenditures, debt service requirements or other purposes; require the dedication of a substantial portion of any cash flows from operations to service for indebtedness, thereby reducing the amount of cash flows available for other purposes, including capital expenditures; and limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "Cash Equivalents",
      "similarity_score": 0.695,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Land $ 19,487 $ 18,481 Buildings 127,705 128,991 Machinery, equipment and software 1,047,235 1,059,880 Furniture and fixtures 28,093 29,929 Leasehold improvements 66,777 64,631 Construction in progress 54,799 22,470 1,344,096 1,324,382 Less: accumulated depreciation 898,604 905,699 $ 445,492 $ 418,683 (1)Excludes $9.0 million of property, plant and equipment, net classified as assets held for sale.\"",
        "Reworded sentence: \"During the years ended December 31, 2023 and 2022, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments.\"",
        "Reworded sentence: \"Unrealized gains on equity securities recorded during the years ended December 31, 2023, 2022 and 2021 were $8.9 million, $1.9 million and $5.1 million, respectively.\"",
        "Reworded sentence: \"The cost of securities sold is based on average cost.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Cash Equivalents Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. 63 63 3 Table of Contents Marketable Securities Teradyne’s equity and debt mutual funds are classified as Level 1 and available-for-sale debt securities are classified as Level 2. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. During the years ended December 31, 2022 and 2021, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in 2022, 2021, and 2020 were $0.8 million, $3.1 million, and $4.6 million, respectively. Realized losses recorded in 2022 and 2020 were $1.0 million and $0.3 million, respectively. No realized losses were recorded in 2021. Realized gains and losses are included in other (income) expense, net. Unrealized gains on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were $1.9 million, $5.1 million and $9.6 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were $11.6 million, $1.8 million and $6.0 million, respectively. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale debt securities are included in accumulated other comprehensive income (loss) on the balance sheet. 64 Marketable Securities Teradyne’s equity and debt mutual funds are classified as Level 1 and available-for-sale debt securities are classified as Level 2. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. During the years ended December 31, 2022 and 2021, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in 2022, 2021, and 2020 were $0.8 million, $3.1 million, and $4.6 million, respectively. Realized losses recorded in 2022 and 2020 were $1.0 million and $0.3 million, respectively. No realized losses were recorded in 2021. Realized gains and losses are included in other (income) expense, net. Unrealized gains on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were $1.9 million, $5.1 million and $9.6 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were $11.6 million, $1.8 million and $6.0 million, respectively. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale debt securities are included in accumulated other comprehensive income (loss) on the balance sheet. 64 Marketable Securities"
    },
    {
      "status": "MODIFIED",
      "current_title": "Business Combination",
      "prior_title": "Business Combination",
      "similarity_score": 0.695,
      "confidence": "medium",
      "key_changes": [
        "Removed sentence: \"Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.\"",
        "Removed sentence: \"The fair value of identifiable intangible assets is based on detailed cash flows valuations that use information and assumptions provided by management.\"",
        "Removed sentence: \"Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model.\"",
        "Removed sentence: \"Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill.\"",
        "Removed sentence: \"The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors.\""
      ],
      "current_body": "Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flows valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. 49 49 Table of Contents Table of Contents Table of Contents Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery, equipment and software 3 to 5 years Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2023, 2022, and 2021 was $2.8 million, $6.6 million, and $16.6 million, respectively.",
      "prior_body": "Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flows valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flows valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. Property, Plant and Equipment"
    },
    {
      "status": "MODIFIED",
      "current_title": "PROPERTY, PLANT AND EQUIPMENT",
      "prior_title": "PROPERTY, PLANT AND EQUIPMENT",
      "similarity_score": 0.691,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Property, plant and equipment, net consisted of the following at December 31, 2023 and 2022: 2023 (1) 2022 (in thousands) Land $ 19,487 $ 18,481 Buildings 127,705 128,991 Machinery, equipment and software 1,047,235 1,059,880 Furniture and fixtures 28,093 29,929 Leasehold improvements 66,777 64,631 Construction in progress 54,799 22,470 1,344,096 1,324,382 Less: accumulated depreciation 898,604 905,699 $ 445,492 $ 418,683 (1)Excludes $9.0 million of property, plant and equipment, net classified as assets held for sale.\""
      ],
      "current_body": "Property, plant and equipment, net consisted of the following at December 31, 2023 and 2022: 2023 (1) 2022 (in thousands) Land $ 19,487 $ 18,481 Buildings 127,705 128,991 Machinery, equipment and software 1,047,235 1,059,880 Furniture and fixtures 28,093 29,929 Leasehold improvements 66,777 64,631 Construction in progress 54,799 22,470 1,344,096 1,324,382 Less: accumulated depreciation 898,604 905,699 $ 445,492 $ 418,683 (1)Excludes $9.0 million of property, plant and equipment, net classified as assets held for sale. See Note E: “Assets held for sale” for additional information. Property, plant and equipment, net consisted of the following at December 31, 2023 and 2022: 2023 (1) 2022",
      "prior_body": "PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consisted of the following at December 31, 2022 and 2021: Property, plant and equipment, net consisted of the following at December 31, 2022 and 2021: 2022 2022 2021 2021 (in thousands)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Disaggregation of Revenue",
      "prior_title": "INVESTMENT IN OTHER COMPANY",
      "similarity_score": 0.688,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines.\""
      ],
      "current_body": "The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Test Robotics System-on-a-chip Memory SystemTest Universal Robots Mobile Industrial Robots WirelessTest CorporateandEliminations Total (in thousands) For the Year Ended December 31, 2023 (1) Timing of Revenue Recognition Point in Time $ 1,141,882 $ 356,417 $ 268,379 $ 296,252 $ 66,986 $ 129,399 $ — $ 2,259,315 Over Time 290,739 29,598 69,818 7,540 4,405 14,883 — 416,983 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298 Geographical Market Asia Pacific $ 1,214,322 $ 366,151 $ 153,387 $ 63,312 $ 10,424 $ 85,415 $ — $ 1,893,011 Americas 117,728 11,367 151,579 111,761 36,191 50,770 — 479,396 Europe, Middle East and Africa 100,571 8,497 33,231 128,719 24,776 8,097 — 303,891 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298 For the Year Ended December 31, 2022 (1) Timing of Revenue Recognition Point in Time $ 1,445,238 $ 344,693 $ 402,074 $ 317,514 $ 73,812 $ 189,040 $ 251 $ 2,772,622 Over Time 261,646 29,013 67,272 8,218 3,594 12,680 — 382,423 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 Geographical Market Asia Pacific $ 1,514,964 $ 360,176 $ 294,350 $ 73,930 $ 15,724 $ 140,767 $ — $ 2,399,911 Americas 122,575 11,987 146,040 112,203 35,213 47,350 251 475,619 Europe, Middle East and Africa 69,345 1,543 28,956 139,599 26,469 13,603 — 279,515 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 For the Year Ended December 31, 2021 (1) Timing of Revenue Recognition Point in Time $ 1,989,979 $ 365,441 $ 409,383 $ 305,512 $ 60,884 $ 204,247 $ — $ 3,335,446 Over Time 256,751 30,171 58,356 5,670 3,839 12,648 — 367,435 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 Geographical Market Asia Pacific $ 2,076,647 $ 381,444 $ 306,812 $ 81,456 $ 12,919 $ 172,103 $ — $ 3,031,381 Americas 102,702 10,665 135,230 94,897 26,069 36,173 — 405,736 Europe, Middle East and Africa 67,381 3,503 25,697 134,829 25,735 8,619 — 265,764 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 (1)Includes $5.2 million, $8.2 million and $13.2 million in 2023, 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines.",
      "prior_body": "INVESTMENT IN OTHER COMPANY On June 1, 2021, Teradyne invested $12.0 million in MachineMetrics, Inc. (“MachineMetrics”), a private company that develops and sells products to improve manufacturing performance through automated machine data collection, alerting, and analytics. Teradyne’s investment in MachineMetrics aligns with its strategy of providing and investing in leading edge products for automating industrial production processes in growing markets. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on a quarterly basis. At December 31, 2022, the value of the investment was $12.0 million, and there was no change during the year ended December 31, 2022. On June 1, 2021, Teradyne invested $12.0 million in MachineMetrics, Inc. (“MachineMetrics”), a private company that develops and sells products to improve manufacturing performance through automated machine data collection, alerting, and analytics. Teradyne’s investment in MachineMetrics aligns with its strategy of providing and investing in leading edge products for automating industrial production processes in growing markets. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on a quarterly basis. At December 31, 2022, the value of the investment was $12.0 million, and there was no change during the year ended December 31, 2022. 61 61 1 Table of Contents E. REVENUE Disaggregation of Revenue The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Test Robotics System-on- a-chip Memory System Test Universal Robots Mobile Industrial Robots Wireless Test Corporate and Eliminations Total (in thousands) For the Year Ended December 31, 2022 (1) Timing of Revenue Recognition Point in Time $ 1,445,238 $ 344,693 $ 402,074 $ 317,514 $ 73,812 $ 189,040 $ 251 $ 2,772,622 Over Time 261,646 29,013 67,272 8,218 3,594 12,680 — 382,423 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 Geographical Market Asia Pacific $ 1,514,964 $ 360,176 $ 294,350 $ 73,930 $ 15,724 $ 140,767 $ — $ 2,399,911 Americas 122,575 11,987 146,040 112,203 35,213 47,350 251 475,619 Europe, Middle East and Africa 69,345 1,543 28,956 139,599 26,469 13,603 — 279,515 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 For the Year Ended December 31, 2021 (1) Timing of Revenue Recognition Point in Time $ 1,989,979 $ 365,441 $ 409,383 $ 305,512 $ 60,884 $ 204,247 $ — $ 3,335,446 Over Time 256,751 30,171 58,356 5,670 3,839 12,648 — 367,435 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 Geographical Market Asia Pacific $ 2,076,647 $ 381,444 $ 306,812 $ 81,456 $ 12,919 $ 172,103 $ — $ 3,031,381 Americas 102,702 10,665 135,230 94,897 26,069 36,173 — 405,736 Europe, Middle East and Africa 67,381 3,503 25,697 134,829 25,735 8,619 — 265,764 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 For the Year Ended December 31, 2020 (1) Timing of Revenue Recognition Point in Time $ 1,659,414 $ 363,324 $ 348,454 $ 214,212 $ 55,533 $ 163,834 $ (604 ) $ 2,804,167 Over Time 217,975 18,884 61,275 7,269 2,717 9,182 — 317,302 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 58,250 $ 173,016 $ (604 ) $ 3,121,469 Geographical Market Asia Pacific $ 1,744,593 $ 364,000 $ 258,521 $ 60,277 $ 6,471 $ 143,969 $ — $ 2,577,831 Americas 77,671 12,999 128,482 64,164 30,186 22,544 (604 ) 335,442 Europe, Middle East and Africa 55,125 5,209 22,726 97,040 21,593 6,503 — 208,196 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 58,250 $ 173,016 $ (604 ) $ 3,121,469 (1) Includes $8.2 million, $13.2 million and $10.0 million in 2022, 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” 62 E. REVENUE Disaggregation of Revenue The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Test Robotics System-on- a-chip Memory System Test Universal Robots Mobile Industrial Robots Wireless Test Corporate and Eliminations Total (in thousands) For the Year Ended December 31, 2022 (1) Timing of Revenue Recognition Point in Time $ 1,445,238 $ 344,693 $ 402,074 $ 317,514 $ 73,812 $ 189,040 $ 251 $ 2,772,622 Over Time 261,646 29,013 67,272 8,218 3,594 12,680 — 382,423 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 Geographical Market Asia Pacific $ 1,514,964 $ 360,176 $ 294,350 $ 73,930 $ 15,724 $ 140,767 $ — $ 2,399,911 Americas 122,575 11,987 146,040 112,203 35,213 47,350 251 475,619 Europe, Middle East and Africa 69,345 1,543 28,956 139,599 26,469 13,603 — 279,515 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045 For the Year Ended December 31, 2021 (1) Timing of Revenue Recognition Point in Time $ 1,989,979 $ 365,441 $ 409,383 $ 305,512 $ 60,884 $ 204,247 $ — $ 3,335,446 Over Time 256,751 30,171 58,356 5,670 3,839 12,648 — 367,435 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 Geographical Market Asia Pacific $ 2,076,647 $ 381,444 $ 306,812 $ 81,456 $ 12,919 $ 172,103 $ — $ 3,031,381 Americas 102,702 10,665 135,230 94,897 26,069 36,173 — 405,736 Europe, Middle East and Africa 67,381 3,503 25,697 134,829 25,735 8,619 — 265,764 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881 For the Year Ended December 31, 2020 (1) Timing of Revenue Recognition Point in Time $ 1,659,414 $ 363,324 $ 348,454 $ 214,212 $ 55,533 $ 163,834 $ (604 ) $ 2,804,167 Over Time 217,975 18,884 61,275 7,269 2,717 9,182 — 317,302 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 58,250 $ 173,016 $ (604 ) $ 3,121,469 Geographical Market Asia Pacific $ 1,744,593 $ 364,000 $ 258,521 $ 60,277 $ 6,471 $ 143,969 $ — $ 2,577,831 Americas 77,671 12,999 128,482 64,164 30,186 22,544 (604 ) 335,442 Europe, Middle East and Africa 55,125 5,209 22,726 97,040 21,593 6,503 — 208,196 Total $ 1,877,389 $ 382,208 $ 409,729 $ 221,481 $ 58,250 $ 173,016 $ (604 ) $ 3,121,469 (1) Includes $8.2 million, $13.2 million and $10.0 million in 2022, 2021 and 2020, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” 62 E. E. REVENUE REVENUE REVENUE Disaggregation of Revenue"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.687,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Balance at December 31, 2020 $ 16,633 Accruals for warranties issued during the period 35,727 Accruals related to pre-existing warranties (6,846 ) Settlements made during the period (20,937 ) Balance at December 31, 2021 24,577 Accruals for warranties issued during the period 21,851 Accruals related to pre-existing warranties (5,618 ) Settlements made during the period (26,629 ) Balance at December 31, 2022 14,181 Accruals for warranties issued during the period 21,644 Accruals related to pre-existing warranties (1,576 ) Settlements made during the period (18,551 ) Balance at December 31, 2023 $ 15,698 When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period.\"",
        "Reworded sentence: \"The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2020 $ 51,929 Deferral of new extended warranty revenue 43,597 Recognition of extended warranty deferred revenue (31,358 ) Balance at December 31, 2021 64,168 Deferral of new extended warranty revenue 33,686 Recognition of extended warranty deferred revenue (41,674 ) Balance at December 31, 2022 56,180 Deferral of new extended warranty revenue 14,330 Recognition of extended warranty deferred revenue (35,613 ) Balance at December 31, 2023 $ 34,897 Amount\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "(d) Maximum Number(or Approximate DollarValue) of Shares (orUnits) that may Yet BePurchased Under thePlans or Programs",
      "prior_title": "Management’s Discussion and Analysis of Financial Condition and Results of Operations",
      "similarity_score": 0.673,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"October 2, 2023 – October 29, 2023 363 $ 97.65 362 $ 1,615,390 October 30, 2023 – November 26, 2023 185 85.97 185 1,599,497 November 27, 2023 – December 31, 2023 1 93.70 — 1,599,497 549 (1) $ 93.70 (1) 547 (1)Includes approximately two thousand shares at an average price of $94.13 withheld from employees for the payment of taxes.\"",
        "Reworded sentence: \"In 2023, the demand in our Semiconductor Test business continued to be impacted by a correction cycle driven by excess semiconductor inventory, primarily in the mobility segment of the market.\"",
        "Reworded sentence: \"Demand in the fourth quarter of 2023 increased, tied to introduction of new products and seasonally high demand in Robotics after market softness and the impact of our channel transformation resulted in a weaker than forecasted first half of 2023.\"",
        "Reworded sentence: \"There was no material impact to our 2023 results due to changes in foreign exchange rates, however, in 2022, the strengthening of the U.S.\"",
        "Reworded sentence: \"dollar would adversely affect Robotics revenue growth in 2024.\""
      ],
      "current_body": "October 2, 2023 – October 29, 2023 363 $ 97.65 362 $ 1,615,390 October 30, 2023 – November 26, 2023 185 85.97 185 1,599,497 November 27, 2023 – December 31, 2023 1 93.70 — 1,599,497 549 (1) $ 93.70 (1) 547 (1)Includes approximately two thousand shares at an average price of $94.13 withheld from employees for the payment of taxes. Includes approximately two thousand shares at an average price of $94.13 withheld from employees for the payment of taxes. (2)As of January 1, 2023, share repurchases net of share issuances are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred is included as part of the cost basis of shares repurchased in the Condensed Consolidated Statements of Convertible Common Shares and Stockholders' Equity. As of January 1, 2023, share repurchases net of share issuances are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred is included as part of the cost basis of shares repurchased in the Condensed Consolidated Statements of Convertible Common Shares and Stockholders' Equity. (3)In January 2023, the Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion of common stock. Unless terminated by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. In January 2023, the Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion of common stock. Unless terminated by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. We satisfy U.S. federal and state minimum withholding tax obligations due upon the vesting and the conversion of restricted stock units into shares of our common stock, by automatically withholding from the shares being issued, a number of shares with an aggregate fair market value on the date of such vesting and conversion that would satisfy the minimum withholding amount due. Item 6: (Reserved) 24 24 Table of Contents Table of Contents Table of Contents Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview We are a leading global supplier of automated test equipment and robotics products. We design, develop, manufacture and sell automated test systems and robotics products. Our automated test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Our Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Our automated test equipment and robotics products and services include: •semiconductor test (“Semiconductor Test”) systems; semiconductor test (“Semiconductor Test”) systems; •storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); •wireless test (“Wireless Test”) systems; and wireless test (“Wireless Test”) systems; and •robotics (“Robotics”) products. robotics (“Robotics”) products. The market for our test products is concentrated with a limited number of significant customers accounting for a substantial portion of the purchases of test equipment. A few customers drive significant demand for our products both through direct sales and sales to the customer’s supply partners. We expect that sales of our test products will continue to be concentrated with a limited number of significant customers for the foreseeable future. In 2023, the demand in our Semiconductor Test business continued to be impacted by a correction cycle driven by excess semiconductor inventory, primarily in the mobility segment of the market. The depth of this slowdown and the timing of the recovery are uncertain, however, strong automotive and image sensor demand partially offset these declines. The growth of DDR5 and High Bandwidth Memory (\"HBM\") devices for data center applications continued to drive demand for our products in the memory market in 2023. Over the midterm, we expect the ramp of 3 nanometer and gate-all-around process technology, increasing multichip packaging, additional device complexity and unit growth will drive additional demand for Semiconductor Test. Our Robotics segment consists of Universal Robots A/S (“UR”), a leading supplier of collaborative robotic arms, and Mobile Industrial Robots A/S (“MiR”), a leading maker of AMRs for industrial automation. The market for our Robotics segment products is dependent on the adoption of new automation technologies by large manufacturers as well as small and medium enterprises (“SMEs”) throughout the world. Demand in the fourth quarter of 2023 increased, tied to introduction of new products and seasonally high demand in Robotics after market softness and the impact of our channel transformation resulted in a weaker than forecasted first half of 2023. On November 7, 2023, Teradyne and Technoprobe S.p.A, (“Technoprobe”), a leader in the design and production of probe cards, announced establishment of a strategic partnership that will seek to accelerate growth for both companies and enable higher performance semiconductor test interfaces for customers worldwide. As part of the partnership, Teradyne will make an investment of 481.0 million Euros in exchange for a 10% equity investment in Technoprobe and Technoprobe will acquire 100% of Teradyne’s Device Interface Solutions (\"DIS\") business in exchange for $85.0 million. The transaction is expected to close during the first half of 2024. In 2023, inflation had minimal effect on our results. While both our test and robotics businesses may continue to be influenced by supply constraints, which could impact our revenue and costs, We do not anticipate that supply chain constraints will have a material impact on our financial results in 2024. Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Robotics revenue is denominated in foreign currencies. There was no material impact to our 2023 results due to changes in foreign exchange rates, however, in 2022, the strengthening of the U.S. dollar was a factor in lower than forecasted revenues in our Robotics segment. Continued strengthening of the U.S. dollar would adversely affect Robotics revenue growth in 2024. Our corporate strategy continues to focus on profitably gaining market share in our test businesses through the introduction of differentiated products that target expanding segments and accelerating growth through continued investment in our Robotics businesses. We plan to continue investing in our growth while balancing capital allocations between stock repurchases and dividends and using capital for acquisitions. 25 25 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview We are a leading global supplier of automated test equipment and robotics products. We design, develop, manufacture and sell automatic test systems and robotics products. Our automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Our Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and 28 Table of Contents material handling efficiency and decrease manufacturing and logistics costs. Our automatic test equipment and robotics products and services include: • semiconductor test (“Semiconductor Test”) systems; • storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); • wireless test (“Wireless Test”) systems; and • robotics (“Robotics”) products. The market for our test products is concentrated with a limited number of significant customers accounting for a substantial portion of the purchases of test equipment. A few customers drive significant demand for our products both through direct sales and sales to the customer’s supply partners. We expect that sales of our test products will continue to be concentrated with a limited number of significant customers for the foreseeable future. In 2022, the demand in the mobility and compute segments of our Semiconductor Test business was lower due to end market slowdown in these segments as well as a slower technology transition in one of our largest end-markets. While the depth of the slowdown and the timing of the recovery are uncertain, we expect the ramp of 3 nanometer process technology starting in 2023 followed by gate-all-around process technology, increasing multichip packaging, additional device complexity and unit growth will drive additional demand for test over our four year forecast period. Our Robotics segment consists of Universal Robots A/S (“UR”), a leading supplier of collaborative robotic arms and Mobile Industrial Robots A/S (“MiR”), a leading maker of AMRs for industrial automation. In September 2022, we merged MiR and AutoGuide, LLC (“AutoGuide”), a maker of high payload AMRs, to become a single supplier of AMRs. The market for our Robotics segment products is dependent on the adoption of new automation technologies by large manufacturers as well as small and medium enterprises (“SMEs”) throughout the world. We expect Robotics sales channel expansion combined with new products to drive the growth in 2023. Both our test and robotics businesses may continue to be influenced by supply constraints, which could impact our revenue and costs in 2023. In 2022, inflation had minimal effect on our results. In 2022, we were unable to supply approximately $20 million of revenue in our test businesses for which we had customer demand. Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Robotics revenue is denominated in foreign currencies. In 2022, the strengthening of the U.S. dollar was a factor in lower than forecasted revenues in our Robotics segment. Continued strengthening of the U.S. dollar would negatively affect Robotics revenue growth in 2023. Our corporate strategy continues to focus on profitably gaining market share in our test businesses through the introduction of differentiated products that target expanding segments and accelerating growth through continued investment in our Robotics businesses. We plan to continue investing in our growth while balancing capital allocations between returning capital to our shareholders through stock repurchases and dividends and using capital for acquisitions. Impact of the COVID-19 Pandemic on our Business During the novel coronavirus (COVID-19) pandemic, government authorities implemented numerous measures in an effort to contain the spread of the virus, such as travel bans and restrictions, limitations on 29 material handling efficiency and decrease manufacturing and logistics costs. Our automatic test equipment and robotics products and services include: • semiconductor test (“Semiconductor Test”) systems; • storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); • wireless test (“Wireless Test”) systems; and • robotics (“Robotics”) products. The market for our test products is concentrated with a limited number of significant customers accounting for a substantial portion of the purchases of test equipment. A few customers drive significant demand for our products both through direct sales and sales to the customer’s supply partners. We expect that sales of our test products will continue to be concentrated with a limited number of significant customers for the foreseeable future. In 2022, the demand in the mobility and compute segments of our Semiconductor Test business was lower due to end market slowdown in these segments as well as a slower technology transition in one of our largest end-markets. While the depth of the slowdown and the timing of the recovery are uncertain, we expect the ramp of 3 nanometer process technology starting in 2023 followed by gate-all-around process technology, increasing multichip packaging, additional device complexity and unit growth will drive additional demand for test over our four year forecast period. Our Robotics segment consists of Universal Robots A/S (“UR”), a leading supplier of collaborative robotic arms and Mobile Industrial Robots A/S (“MiR”), a leading maker of AMRs for industrial automation. In September 2022, we merged MiR and AutoGuide, LLC (“AutoGuide”), a maker of high payload AMRs, to become a single supplier of AMRs. The market for our Robotics segment products is dependent on the adoption of new automation technologies by large manufacturers as well as small and medium enterprises (“SMEs”) throughout the world. We expect Robotics sales channel expansion combined with new products to drive the growth in 2023. Both our test and robotics businesses may continue to be influenced by supply constraints, which could impact our revenue and costs in 2023. In 2022, inflation had minimal effect on our results. In 2022, we were unable to supply approximately $20 million of revenue in our test businesses for which we had customer demand. Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Robotics revenue is denominated in foreign currencies. In 2022, the strengthening of the U.S. dollar was a factor in lower than forecasted revenues in our Robotics segment. Continued strengthening of the U.S. dollar would negatively affect Robotics revenue growth in 2023. Our corporate strategy continues to focus on profitably gaining market share in our test businesses through the introduction of differentiated products that target expanding segments and accelerating growth through continued investment in our Robotics businesses. We plan to continue investing in our growth while balancing capital allocations between returning capital to our shareholders through stock repurchases and dividends and using capital for acquisitions. Impact of the COVID-19 Pandemic on our Business During the novel coronavirus (COVID-19) pandemic, government authorities implemented numerous measures in an effort to contain the spread of the virus, such as travel bans and restrictions, limitations on 29 material handling efficiency and decrease manufacturing and logistics costs. Our automatic test equipment and robotics products and services include: semiconductor test (“Semiconductor Test”) systems; storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); wireless test (“Wireless Test”) systems; and robotics (“Robotics”) products. The market for our test products is concentrated with a limited number of significant customers accounting for a substantial portion of the purchases of test equipment. A few customers drive significant demand for our products both through direct sales and sales to the customer’s supply partners. We expect that sales of our test products will continue to be concentrated with a limited number of significant customers for the foreseeable future. In 2022, the demand in the mobility and compute segments of our Semiconductor Test business was lower due to end market slowdown in these segments as well as a slower technology transition in one of our largest end-markets. While the depth of the slowdown and the timing of the recovery are uncertain, we expect the ramp of 3 nanometer process technology starting in 2023 followed by gate-all-around process technology, increasing multichip packaging, additional device complexity and unit growth will drive additional demand for test over our four year forecast period. Our Robotics segment consists of Universal Robots A/S (“UR”), a leading supplier of collaborative robotic arms and Mobile Industrial Robots A/S (“MiR”), a leading maker of AMRs for industrial automation. In September 2022, we merged MiR and AutoGuide, LLC (“AutoGuide”), a maker of high payload AMRs, to become a single supplier of AMRs. The market for our Robotics segment products is dependent on the adoption of new automation technologies by large manufacturers as well as small and medium enterprises (“SMEs”) throughout the world. We expect Robotics sales channel expansion combined with new products to drive the growth in 2023. Both our test and robotics businesses may continue to be influenced by supply constraints, which could impact our revenue and costs in 2023. In 2022, inflation had minimal effect on our results. In 2022, we were unable to supply approximately $20 million of revenue in our test businesses for which we had customer demand. Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Robotics revenue is denominated in foreign currencies. In 2022, the strengthening of the U.S. dollar was a factor in lower than forecasted revenues in our Robotics segment. Continued strengthening of the U.S. dollar would negatively affect Robotics revenue growth in 2023. Our corporate strategy continues to focus on profitably gaining market share in our test businesses through the introduction of differentiated products that target expanding segments and accelerating growth through continued investment in our Robotics businesses. We plan to continue investing in our growth while balancing capital allocations between returning capital to our shareholders through stock repurchases and dividends and using capital for acquisitions."
    },
    {
      "status": "MODIFIED",
      "current_title": "We may incur higher tax rates than we expect and may have exposure to additional international tax liabilities and costs.",
      "prior_title": "We are subject to risks of operating internationally.",
      "similarity_score": 0.664,
      "confidence": "medium",
      "key_changes": [
        "Removed sentence: \"A significant portion of our total revenues is derived from customers outside the United States.\"",
        "Removed sentence: \"Our international sales and operations are subject to significant risks and difficulties, including: unexpected changes in legal and regulatory requirements affecting international markets; cost increases due to inflation changes in tariffs and exchange rates; social, political and economic instability, acts of terrorism and international conflicts; disruption caused by health pandemics, such as the coronavirus; difficulties in protecting intellectual property; difficulties in accounts receivable collection; cultural differences in the conduct of business; difficulties in staffing and managing international operations; compliance with anti-corruption laws; compliance with data privacy regulations; 15 Table of Contents • compliance with customs and trade regulations; and • compliance with international tax laws and regulations.\"",
        "Removed sentence: \"In addition, an increasing portion of our products and the products we purchase from our suppliers are sourced or manufactured in foreign locations, including China, Malaysia and Denmark, and a large portion of the devices our products test are fabricated and tested by foundries and subcontractors in Taiwan, China, Korea and other parts of Asia.\"",
        "Removed sentence: \"As a result, we are subject to a number of economic and other risks, particularly during times of political, health or financial instability in these regions.\"",
        "Removed sentence: \"Disruption of manufacturing or supply sources in these international locations could materially adversely impact our ability to fill customer orders and potentially result in lost business.\""
      ],
      "current_body": "We are subject to paying income taxes in the United States and other countries where we operate. Our effective tax rate is dependent on where our earnings are generated and the tax regulations and the interpretation and judgment of administrative tax or revenue authorities in the United States and other countries. We have pursued a global tax strategy that could be adversely affected by the mix of earnings and tax rates in the countries where we operate, changes to tax laws, tax regulations or an adverse tax ruling by administrative authorities. We are also subject to tax audits in the countries where we operate. Any material change in our tax liability resulting from changes in tax laws, tax regulations, administrative rulings or audits from an administrative tax or revenue authority could negatively affect our financial results. As a multinational corporation, we are subject to income taxes as well as non-income-based taxes, in both the United States and various foreign jurisdictions. In certain foreign jurisdictions, we qualify for tax incentives and tax holidays based on our ability to meet, on a continuing basis, various tests relating to our employment levels, research and development expenditures and other qualification requirements in a particular foreign jurisdiction. While we intend to operate in such a manner to maintain and maximize our tax incentives and tax holidays, no assurance can be given that we have so qualified or that we will so qualify for any particular year or jurisdiction. If we fail to qualify or fail to remain qualified for certain foreign tax incentives and tax holidays, we may be subject to further taxation or an increase in our effective tax rate which would adversely impact our financial results. In November 2020, we entered into an agreement with the Singapore Economic Development Board which extended our Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025. The tax savings attributable to the Singapore tax holiday for the years ended December 31, 2023, 2022 and 2021 were $1.4 million or $0.01 per diluted share, $16.0 million or $0.09 per diluted share, and $33.3 million or $0.18 per diluted share, respectively. These tax savings may not be achievable in subsequent years due to changes in Singapore’s tax laws, issuance of new global minimum tax laws, or the expiration of the tax holiday. In addition, we may incur additional costs, including headcount expenses, in order to maintain or obtain a foreign tax incentive or tax holiday in a particular foreign jurisdiction.",
      "prior_body": "A significant portion of our total revenues is derived from customers outside the United States. Our international sales and operations are subject to significant risks and difficulties, including: unexpected changes in legal and regulatory requirements affecting international markets; cost increases due to inflation changes in tariffs and exchange rates; social, political and economic instability, acts of terrorism and international conflicts; disruption caused by health pandemics, such as the coronavirus; difficulties in protecting intellectual property; difficulties in accounts receivable collection; cultural differences in the conduct of business; difficulties in staffing and managing international operations; compliance with anti-corruption laws; compliance with data privacy regulations; 15 Table of Contents • compliance with customs and trade regulations; and • compliance with international tax laws and regulations. In addition, an increasing portion of our products and the products we purchase from our suppliers are sourced or manufactured in foreign locations, including China, Malaysia and Denmark, and a large portion of the devices our products test are fabricated and tested by foundries and subcontractors in Taiwan, China, Korea and other parts of Asia. As a result, we are subject to a number of economic and other risks, particularly during times of political, health or financial instability in these regions. Disruption of manufacturing or supply sources in these international locations could materially adversely impact our ability to fill customer orders and potentially result in lost business. Risks Related to Teradyne’s Finances We may not fully realize the benefits of our acquisitions or strategic alliances. In June 2015, we acquired Universal Robots, in 2018, we acquired Energid and MiR and, in 2019, we acquired Lemsys and AutoGuide. We may not be able to realize the benefits of acquiring or successfully growing these businesses. We may continue to acquire additional businesses, form strategic alliances, or create joint ventures with third parties that we believe will complement or augment our existing businesses. We may not be able to realize the expected synergies and cost savings from the integration with our existing operations of other businesses or technologies that we may acquire. In addition, the integration process for our acquisitions may be complex, costly and time consuming and include unanticipated issues, expenses, and liabilities. We may have difficulty in developing, manufacturing, and marketing the products of a newly acquired company in a manner that enhances the performance of our combined businesses or product lines and allows us to realize value from expected synergies. Following an acquisition, we may not achieve the revenue or net income levels that justify the acquisition. Acquisitions may also result in one-time charges (such as acquisition-related expenses, write-offs or restructuring charges) or in the future, impairment of goodwill or acquired intangible assets, or adjustments to contingent consideration liabilities that adversely affect our operating results. Additionally, we may fund acquisitions of new businesses, strategic alliances, or joint ventures by utilizing our cash, incurring debt, issuing shares of our common stock, or by other means. We may incur higher tax rates than we expect and may have exposure to additional international tax liabilities and costs. We are subject to paying income taxes in the United States and other countries where we operate. Our effective tax rate is dependent on where our earnings are generated and the tax regulations and the interpretation and judgment of administrative tax or revenue authorities in the United States and other countries. We have pursued a global tax strategy that could be adversely affected by the mix of earnings and tax rates in the countries where we operate, changes to tax laws, tax regulations or an adverse tax ruling by administrative authorities. We are also subject to tax audits in the countries where we operate. Any material change in our tax liability resulting from changes in tax laws, tax regulations, administrative rulings or audits from an administrative tax or revenue authority could negatively affect our financial results. As a multinational corporation, we are subject to income taxes as well as non-income-based taxes, in both the United States and various foreign jurisdictions. In certain foreign jurisdictions, we qualify for tax incentives and tax holidays based on our ability to meet, on a continuing basis, various tests relating to our employment levels, research and development expenditures and other qualification requirements in a particular foreign jurisdiction. While we intend to operate in such a manner to maintain and maximize our tax incentives and tax holidays, no assurance can be given that we have so qualified or that we will so qualify for any particular year or jurisdiction. If we fail to qualify or fail to remain qualified for certain foreign tax incentives and tax holidays, we may be subject to further taxation or an increase in our effective tax rate which would adversely impact our financial results. In November 2020, we entered into an agreement with the Singapore Economic Development 16 • compliance with customs and trade regulations; and • compliance with international tax laws and regulations. In addition, an increasing portion of our products and the products we purchase from our suppliers are sourced or manufactured in foreign locations, including China, Malaysia and Denmark, and a large portion of the devices our products test are fabricated and tested by foundries and subcontractors in Taiwan, China, Korea and other parts of Asia. As a result, we are subject to a number of economic and other risks, particularly during times of political, health or financial instability in these regions. Disruption of manufacturing or supply sources in these international locations could materially adversely impact our ability to fill customer orders and potentially result in lost business. Risks Related to Teradyne’s Finances We may not fully realize the benefits of our acquisitions or strategic alliances. In June 2015, we acquired Universal Robots, in 2018, we acquired Energid and MiR and, in 2019, we acquired Lemsys and AutoGuide. We may not be able to realize the benefits of acquiring or successfully growing these businesses. We may continue to acquire additional businesses, form strategic alliances, or create joint ventures with third parties that we believe will complement or augment our existing businesses. We may not be able to realize the expected synergies and cost savings from the integration with our existing operations of other businesses or technologies that we may acquire. In addition, the integration process for our acquisitions may be complex, costly and time consuming and include unanticipated issues, expenses, and liabilities. We may have difficulty in developing, manufacturing, and marketing the products of a newly acquired company in a manner that enhances the performance of our combined businesses or product lines and allows us to realize value from expected synergies. Following an acquisition, we may not achieve the revenue or net income levels that justify the acquisition. Acquisitions may also result in one-time charges (such as acquisition-related expenses, write-offs or restructuring charges) or in the future, impairment of goodwill or acquired intangible assets, or adjustments to contingent consideration liabilities that adversely affect our operating results. Additionally, we may fund acquisitions of new businesses, strategic alliances, or joint ventures by utilizing our cash, incurring debt, issuing shares of our common stock, or by other means. We may incur higher tax rates than we expect and may have exposure to additional international tax liabilities and costs. We are subject to paying income taxes in the United States and other countries where we operate. Our effective tax rate is dependent on where our earnings are generated and the tax regulations and the interpretation and judgment of administrative tax or revenue authorities in the United States and other countries. We have pursued a global tax strategy that could be adversely affected by the mix of earnings and tax rates in the countries where we operate, changes to tax laws, tax regulations or an adverse tax ruling by administrative authorities. We are also subject to tax audits in the countries where we operate. Any material change in our tax liability resulting from changes in tax laws, tax regulations, administrative rulings or audits from an administrative tax or revenue authority could negatively affect our financial results. As a multinational corporation, we are subject to income taxes as well as non-income-based taxes, in both the United States and various foreign jurisdictions. In certain foreign jurisdictions, we qualify for tax incentives and tax holidays based on our ability to meet, on a continuing basis, various tests relating to our employment levels, research and development expenditures and other qualification requirements in a particular foreign jurisdiction. While we intend to operate in such a manner to maintain and maximize our tax incentives and tax holidays, no assurance can be given that we have so qualified or that we will so qualify for any particular year or jurisdiction. If we fail to qualify or fail to remain qualified for certain foreign tax incentives and tax holidays, we may be subject to further taxation or an increase in our effective tax rate which would adversely impact our financial results. In November 2020, we entered into an agreement with the Singapore Economic Development 16 compliance with customs and trade regulations; and compliance with international tax laws and regulations. In addition, an increasing portion of our products and the products we purchase from our suppliers are sourced or manufactured in foreign locations, including China, Malaysia and Denmark, and a large portion of the devices our products test are fabricated and tested by foundries and subcontractors in Taiwan, China, Korea and other parts of Asia. As a result, we are subject to a number of economic and other risks, particularly during times of political, health or financial instability in these regions. Disruption of manufacturing or supply sources in these international locations could materially adversely impact our ability to fill customer orders and potentially result in lost business."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands, except per share amount)",
      "similarity_score": 0.66,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Revenues: Revenues: Products Products Services Services Total revenues Total revenues Cost of revenues: Cost of revenues: Cost of products Cost of products Cost of services Cost of services Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) Gross profit Gross profit Operating expenses: Operating expenses: Selling and administrative Selling and administrative Engineering and development Engineering and development Acquired intangible assets amortization Acquired intangible assets amortization Restructuring and other Restructuring and other Total operating expenses Total operating expenses Income from operations Income from operations Non-operating (income) expenses: Non-operating (income) expenses: Interest income Interest income Interest expense Interest expense Other (income) expense, net Other (income) expense, net Income before income taxes Income before income taxes Income tax provision Income tax provision Net income Net income Net income per common share: Net income per common share: Basic Basic Diluted Diluted Weighted average common shares—basic Weighted average common shares—basic Weighted average common shares—diluted Weighted average common shares—diluted The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 49 49 49 9 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31, 2022 2021 2020 (in thousands) Net income $ 715,501 $ 1,014,589 $ 784,147 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively (29,031 ) (36,207 ) 48,903 Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively (12,666 ) (2,255 ) 5,839 Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively 301 (995 ) (2,365 ) (12,365 ) (3,250 ) 3,474 Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively (2,517 ) — — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive (loss) income (43,920 ) (39,464 ) 52,370 Comprehensive income $ 671,581 $ 975,125 $ 836,517 The accompanying notes are an integral part of the consolidated financial statements. 50 TERADYNE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31, 2022 2021 2020 (in thousands) Net income $ 715,501 $ 1,014,589 $ 784,147 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively (29,031 ) (36,207 ) 48,903 Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively (12,666 ) (2,255 ) 5,839 Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively 301 (995 ) (2,365 ) (12,365 ) (3,250 ) 3,474 Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively (2,517 ) — — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive (loss) income (43,920 ) (39,464 ) 52,370 Comprehensive income $ 671,581 $ 975,125 $ 836,517 The accompanying notes are an integral part of the consolidated financial statements. 50 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in millions)",
      "prior_title": "(in millions)",
      "similarity_score": 0.658,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Currency Hedged (Buy/Sell) U.S.\"",
        "Reworded sentence: \"At December 31, 2023 and 2022, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S.\""
      ],
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022",
      "prior_body": "Japanese Yen Japanese Yen Taiwan Dollar Taiwan Dollar Korean Won Korean Won British Pound Sterling British Pound Sterling Euro Euro Singapore Dollar Singapore Dollar Philippine Peso Philippine Peso Chinese Yuan Chinese Yuan Total Total The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. At December 31, 2022 and 2021, 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: At December 31, 2022 and 2021, 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: December 31, 2022"
    },
    {
      "status": "MODIFIED",
      "current_title": "Impact of October 7, 2022 and October 17, 2023 U.S. Department of Commerce Regulations on our Business",
      "prior_title": "Impact of October 7, 2022 U.S. Department of Commerce Regulations on our Business",
      "similarity_score": 0.647,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"As previously disclosed, the restrictions impacted Teradyne’s sales to certain companies in China and Teradyne’s manufacturing and development operations in China.\""
      ],
      "current_body": "On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. As previously disclosed, the restrictions impacted Teradyne’s sales to certain companies in China and Teradyne’s manufacturing and development operations in China. Teradyne mitigated the impact of these restrictions on its business by obtaining licenses from the Department of Commerce. On October 17, 2023, the Department of Commerce released new rules updating the exporting controls issued on October 7, 2022. The new rules which took effect on November 17, 2023 significantly limit the impact of the October 7, 2022 restrictions on Teradyne’s business. However, the regulations may continue to have an adverse impact on certain actual or potential customers of Teradyne and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, Teradyne’s business and revenues will be adversely impacted. See Part II—Item 1A, “Risk Factors,” included herein for updates to our risk factors regarding risks associated with supply chain issues, international conflicts, and legal and regulatory compliance.",
      "prior_body": "On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. We continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We are also filing license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. At this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. We also have determined that the restrictions on the export of certain U.S. origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. We have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. We cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed. See Part II—Item 1A, “Risk Factors,” included herein for updates to our risk factors regarding risks associated with the COVID-19 pandemic, supply chain issues and international conflicts."
    },
    {
      "status": "MODIFIED",
      "current_title": "Retirement and Postretirement Plans",
      "prior_title": "Critical Accounting Policies and Estimates",
      "similarity_score": 0.64,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"We recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans.\"",
        "Reworded sentence: \"We believe that 4.75% was an appropriate rate of return on assets to use for 2023.\"",
        "Reworded sentence: \"Plan’s expected cash flows and was 4.75% at December 31, 2023, down from 4.95% at December 31, 2022.\""
      ],
      "current_body": "We recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Qualified Pension Plan (“U.S. Plan”) assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 4.75% was an appropriate rate of return on assets to use for 2023. The December 31, 2023 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.75% at December 31, 2023, down from 4.95% at December 31, 2022. We estimate that in 2024 we will recognize approximately $0.2 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2024 is based on a 4.75% discount rate and a 4.65% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans.",
      "prior_body": "We have identified the policies and estimates discussed below as critical to understanding our business and our results of operations and financial condition. The impact and any associated risks related to these estimates on our business operations is discussed throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations where such policies affect our reported and expected financial results. For a full description of our accounting policies related to the below items refer to Note B. Accounting Policies, included in the Notes to Consolidated Financial Statements in this Annual Report. 31 Table of Contents Critical accounting estimates are complex and may require significant judgment by management. Changes to the underlying assumptions may have a material impact on our financial condition and results of operations. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ significantly from these estimates under different assumptions or conditions. Revenue Recognition In accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), we recognize revenues, when or as control is transferred to a customer. Our determination of revenue requires judgment in the determination of performance obligations and allocation of the transaction price to performance obligations. We often sell bundled orders that include both product and services or multiple different products within the same order. We evaluate each of the deliverables to determine if it meets the definition of a performance obligation, which requires that it is capable of being distinct and distinct within the context of the contract. This determination is based on an assessment of contractual rights of the contract and the ability of the performance obligation to perform on its own or with readily available resources. In bundled transactions we estimate the standalone selling price of each identified performance obligation and use that estimate to allocate the transaction price among said performance obligations. The estimated standalone selling price is determined using all information reasonably available to us, including standalone transactions, market information and other observable inputs. Inventories Inventories are stated at the lower of cost using a standard costing system which approximates cost based on a first-in, first-out basis or net realizable value. On a quarterly basis, we evaluate all inventories for net realizable value. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. Forecasted demand information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. The demand forecast is based on assumptions around the product life and customer and market forecasts. Retirement and Postretirement Plans We recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Qualified Pension Plan (“U.S. Plan”) assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 2.0% was an appropriate rate of return on assets to use for 2022. The December 31, 2022 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.95% at December 31, 2022, up from 2.65% at December 31, 2021. We estimate that in 2023 we will recognize approximately $0.4 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2023 is based on a 4.95% 32 Critical accounting estimates are complex and may require significant judgment by management. Changes to the underlying assumptions may have a material impact on our financial condition and results of operations. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ significantly from these estimates under different assumptions or conditions. Revenue Recognition In accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), we recognize revenues, when or as control is transferred to a customer. Our determination of revenue requires judgment in the determination of performance obligations and allocation of the transaction price to performance obligations. We often sell bundled orders that include both product and services or multiple different products within the same order. We evaluate each of the deliverables to determine if it meets the definition of a performance obligation, which requires that it is capable of being distinct and distinct within the context of the contract. This determination is based on an assessment of contractual rights of the contract and the ability of the performance obligation to perform on its own or with readily available resources. In bundled transactions we estimate the standalone selling price of each identified performance obligation and use that estimate to allocate the transaction price among said performance obligations. The estimated standalone selling price is determined using all information reasonably available to us, including standalone transactions, market information and other observable inputs. Inventories Inventories are stated at the lower of cost using a standard costing system which approximates cost based on a first-in, first-out basis or net realizable value. On a quarterly basis, we evaluate all inventories for net realizable value. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. Forecasted demand information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. The demand forecast is based on assumptions around the product life and customer and market forecasts. Retirement and Postretirement Plans We recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Qualified Pension Plan (“U.S. Plan”) assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 2.0% was an appropriate rate of return on assets to use for 2022. The December 31, 2022 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.95% at December 31, 2022, up from 2.65% at December 31, 2021. We estimate that in 2023 we will recognize approximately $0.4 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2023 is based on a 4.95% 32 Critical accounting estimates are complex and may require significant judgment by management. Changes to the underlying assumptions may have a material impact on our financial condition and results of operations. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ significantly from these estimates under different assumptions or conditions."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.635,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Marketable securities $ 39,950 $ 70 $ (408 ) $ 39,612 $ 30,713 Long-term marketable securities 83,889 3 (10,633 ) $ 73,259 69,050 $ 123,839 $ 73 $ (11,041 ) $ 112,871 $ 99,763 As of December 31, 2023, the fair market value of investments with unrealized losses less than one year and greater than one year totaled $22.3 million and $65.2 million, respectively.\"",
        "Reworded sentence: \"58 58 Table of Contents Table of Contents Table of Contents Teradyne reviews its investments to identify and evaluate investments that have an indication of possible impairment.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Financial Assets and Financial Liabilities",
      "prior_title": "Financial Assets and Financial Liabilities",
      "similarity_score": 0.635,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Teradyne records changes in fair value of equity securities directly in earnings and unrealized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” 48 48 Table of Contents Table of Contents Table of Contents Prepayments Prepayments consist of the following: 2023 (1) 2022 (in thousands) Contract manufacturer and supplier prepayments $ 502,257 $ 491,105 Prepaid maintenance and other services 17,592 14,545 Prepaid taxes 16,083 18,625 Other prepayments 13,038 8,687 Total prepayments $ 548,970 $ 532,962 (1)Excludes $5.3 million of contract manufacturer and supplier prepayments, classified as assets held for sale.\""
      ],
      "current_body": "Teradyne records changes in fair value of equity securities directly in earnings and unrealized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” 48 48 Table of Contents Table of Contents Table of Contents Prepayments Prepayments consist of the following: 2023 (1) 2022 (in thousands) Contract manufacturer and supplier prepayments $ 502,257 $ 491,105 Prepaid maintenance and other services 17,592 14,545 Prepaid taxes 16,083 18,625 Other prepayments 13,038 8,687 Total prepayments $ 548,970 $ 532,962 (1)Excludes $5.3 million of contract manufacturer and supplier prepayments, classified as assets held for sale. See Note E: “Assets held for sale” for additional information.",
      "prior_body": "Financial Assets and Financial Liabilities Teradyne records changes in fair value of equity securities directly in earnings and realized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Prepayments"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in millions)",
      "prior_title": "Income (Loss) Before Income Taxes",
      "similarity_score": 0.623,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Semiconductor Test $ 453.3 $ 634.5 $ (181.2 ) System Test 94.1 166.9 (72.8 ) Wireless Test 30.6 66.8 (36.2 ) Robotics (54.3 ) (16.2 ) (38.1 ) Corporate and Eliminations (1) 1.9 (11.6 ) 13.5 $ 525.6 $ 840.4 $ (314.8 ) (1)Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, employee severance, pension and postretirement plan actuarial gains (losses), legal and environmental fees, acquisition and divestiture related expenses, contract termination settlement charge, and an expense for the modification of Teradyne's former chief executive officer's outstanding equity awards.\""
      ],
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022",
      "prior_body": "2021-2022 Semiconductor Test System Test Wireless Test Robotics Corporate and Eliminations (1) Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, pension and postretirement plan actuarial gains (losses), legal and environmental fees, contingent consideration adjustments, acquisition related charges and compensation and loss on convertible debt conversions in 2021. The decrease in income before income taxes in Semiconductor Test was driven primarily by lower revenues in mobile and high performance compute processor applications, partially offset by lower variable compensation. The increase in income before income taxes in System Test was primarily due to higher sales in Defense/Aerospace and in Production Board Test, partially offset by a decline in Storage Test sales of system level testers. The decrease in income before income taxes in Wireless Test was driven primarily by lower sales in cellular test products partially offset by elevated sales in ultra-wide band test products. The decrease in income before income taxes in Robotics, was driven primarily by an increase in headcount and greater spending, partially offset by higher revenue for collaborative robotic arms and autonomous mobile robots. The change in income before income taxes in Corporate and Eliminations of $42.9 million was due primarily to $28.8 million of losses on convertible debt conversions recognized in 2021 and an increase of $23.4 million in pension actuarial gains in 2022."
    },
    {
      "status": "MODIFIED",
      "current_title": "We may be subject to product recalls and warranty and product liability claims.",
      "prior_title": "We may be subject to product recalls and warranty and product liability claims.",
      "similarity_score": 0.614,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"However, from time to time, we discover design or manufacturing defects in our products after they have been shipped and, as a result, we have incurred development and remediation costs and settled warranty and product liability claims.\"",
        "Removed sentence: \"We may incur significant costs of complying with present and future environmental regulations and may incur significant liabilities if we fail to comply with such environmental regulations.\"",
        "Removed sentence: \"We are subject to both domestic and international environmental regulations and statutory strict liability relating to the use, storage, discharge, site cleanup and disposal of hazardous chemicals used in our manufacturing processes.\"",
        "Removed sentence: \"In addition, future regulations in response to global climate change may affect us, our suppliers, and our customers.\"",
        "Removed sentence: \"Such regulations could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or both incurring additional compliance costs that are passed on to us.\""
      ],
      "current_body": "We invest significant resources in the design, manufacturing and testing of our products. However, from time to time, we discover design or manufacturing defects in our products after they have been shipped and, as a result, we have incurred development and remediation costs and settled warranty and product liability claims. In addition, when our products contain defects or have reliability, quality or safety issues, we have conducted a product recall which resulted in significant repair or replacement costs and substantial delays in product shipments and may damage our reputation which could make it more difficult to sell our products. We could continue to have warranty and product liability claims or product recalls in the future. Any of these results could have a material adverse effect on our business, results of operations or financial condition.",
      "prior_body": "We invest significant resources in the design, manufacturing and testing of our products. However, from time to time, we discover design or manufacturing defects in our products after they have been shipped and, as a 25 Table of Contents result, we have incurred development and remediation costs and settled warranty and product liability claims. In addition, when our products contain defects or have reliability, quality or safety issues, we have conducted a product recall which resulted in significant repair or replacement costs and substantial delays in product shipments and may damage our reputation which could make it more difficult to sell our products. We could continue to have warranty and product liability claims or product recalls in the future. Any of these results could have a material adverse effect on our business, results of operations or financial condition. We may incur significant costs of complying with present and future environmental regulations and may incur significant liabilities if we fail to comply with such environmental regulations. We are subject to both domestic and international environmental regulations and statutory strict liability relating to the use, storage, discharge, site cleanup and disposal of hazardous chemicals used in our manufacturing processes. In addition, future regulations in response to global climate change may affect us, our suppliers, and our customers. Such regulations could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or both incurring additional compliance costs that are passed on to us. Future climate change regulations could result in decreased demand for our products. If we fail to comply with present and future regulations, or are required to perform site remediation, we could be subject to future liabilities or cost, including penalties or the suspension of production. Present and future regulations may also: • restrict our ability to expand facilities; • restrict our ability to ship certain products; • require us to modify our operations logistics; • require us to acquire costly equipment; or • require us to incur other significant costs and expenses. Pursuant to present regulations and agreements, we are conducting groundwater and subsurface assessment and monitoring and are implementing remediation and corrective action plans for facilities located in Massachusetts and New Hampshire which are no longer conducting manufacturing operations. As of December 31, 2022, we have not incurred material costs as a result of the monitoring and remediation steps taken at the Massachusetts and New Hampshire sites. The directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (the “RoHS Directive”) and the directive on Waste Electrical and Electronic Equipment (the “WEEE Directive”) altered the form and manner in which electronic equipment is imported, sold and handled in the European Union. Other jurisdictions, such as China, have followed the European Union’s lead in enacting legislation with respect to hazardous substances and waste removal. Ensuring compliance with the RoHS Directive, the WEEE Directive and similar legislation in other jurisdictions, and integrating compliance activities with our suppliers and customers could result in additional costs and disruption to operations and logistics and thus, could have a negative impact on our business, operations or financial condition. We currently are, and in the future may be, subject to litigation or regulatory proceedings that could have an adverse effect on our business. From time to time, we may be subject to litigation or other administrative, regulatory or governmental proceedings, including tax audits and resulting claims that could require significant management time and resources and cause us to incur expenses and, in the event of an adverse decision, pay damages or incur costs in an amount that could have a material adverse effect on our financial position or results of operations. We may face risks associated with shareholder activism. We may become subject to campaigns by shareholders advocating corporate actions such as financial restructuring, increased borrowing, special dividends, stock repurchases or divestitures. Such activities could 26 result, we have incurred development and remediation costs and settled warranty and product liability claims. In addition, when our products contain defects or have reliability, quality or safety issues, we have conducted a product recall which resulted in significant repair or replacement costs and substantial delays in product shipments and may damage our reputation which could make it more difficult to sell our products. We could continue to have warranty and product liability claims or product recalls in the future. Any of these results could have a material adverse effect on our business, results of operations or financial condition. We may incur significant costs of complying with present and future environmental regulations and may incur significant liabilities if we fail to comply with such environmental regulations. We are subject to both domestic and international environmental regulations and statutory strict liability relating to the use, storage, discharge, site cleanup and disposal of hazardous chemicals used in our manufacturing processes. In addition, future regulations in response to global climate change may affect us, our suppliers, and our customers. Such regulations could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or both incurring additional compliance costs that are passed on to us. Future climate change regulations could result in decreased demand for our products. If we fail to comply with present and future regulations, or are required to perform site remediation, we could be subject to future liabilities or cost, including penalties or the suspension of production. Present and future regulations may also: • restrict our ability to expand facilities; • restrict our ability to ship certain products; • require us to modify our operations logistics; • require us to acquire costly equipment; or • require us to incur other significant costs and expenses. Pursuant to present regulations and agreements, we are conducting groundwater and subsurface assessment and monitoring and are implementing remediation and corrective action plans for facilities located in Massachusetts and New Hampshire which are no longer conducting manufacturing operations. As of December 31, 2022, we have not incurred material costs as a result of the monitoring and remediation steps taken at the Massachusetts and New Hampshire sites. The directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (the “RoHS Directive”) and the directive on Waste Electrical and Electronic Equipment (the “WEEE Directive”) altered the form and manner in which electronic equipment is imported, sold and handled in the European Union. Other jurisdictions, such as China, have followed the European Union’s lead in enacting legislation with respect to hazardous substances and waste removal. Ensuring compliance with the RoHS Directive, the WEEE Directive and similar legislation in other jurisdictions, and integrating compliance activities with our suppliers and customers could result in additional costs and disruption to operations and logistics and thus, could have a negative impact on our business, operations or financial condition. We currently are, and in the future may be, subject to litigation or regulatory proceedings that could have an adverse effect on our business. From time to time, we may be subject to litigation or other administrative, regulatory or governmental proceedings, including tax audits and resulting claims that could require significant management time and resources and cause us to incur expenses and, in the event of an adverse decision, pay damages or incur costs in an amount that could have a material adverse effect on our financial position or results of operations. We may face risks associated with shareholder activism. We may become subject to campaigns by shareholders advocating corporate actions such as financial restructuring, increased borrowing, special dividends, stock repurchases or divestitures. Such activities could 26 result, we have incurred development and remediation costs and settled warranty and product liability claims. In addition, when our products contain defects or have reliability, quality or safety issues, we have conducted a product recall which resulted in significant repair or replacement costs and substantial delays in product shipments and may damage our reputation which could make it more difficult to sell our products. We could continue to have warranty and product liability claims or product recalls in the future. Any of these results could have a material adverse effect on our business, results of operations or financial condition."
    },
    {
      "status": "MODIFIED",
      "current_title": "Number of securities remainingavailable for future issuanceunder equity compensationplans (excluding securitiesreflected in column one)",
      "prior_title": "Retirement Plans",
      "similarity_score": 0.607,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Equity plans approved by shareholders 1,548 (1) $ 94.85 7,863 (2) (1)Includes 1,377,662 shares of restricted stock units that are not included in the calculation of the weighted average exercise price.\"",
        "Reworded sentence: \"The aggregate number of shares available under the 2006 Equity Plan as of December 31, 2023 was 4,352,428 shares of our common stock.\"",
        "Reworded sentence: \"Awards may be made to any employee, officer, consultant and advisor of Teradyne and our subsidiaries, as well as to our directors.\"",
        "Reworded sentence: \"As of December 31, 2023, total unrecognized compensation expense related to non-vested restricted stock units and options was $73.7 million and is expected to be recognized over a weighted average period of 2.5 years.\""
      ],
      "current_body": "Equity plans approved by shareholders 1,548 (1) $ 94.85 7,863 (2) (1)Includes 1,377,662 shares of restricted stock units that are not included in the calculation of the weighted average exercise price. Includes 1,377,662 shares of restricted stock units that are not included in the calculation of the weighted average exercise price. (2)Consists of 4,352,428 securities available for issuance under the 2006 Equity Plan and 3,510,784 of securities available for issuance under the Employee Stock Purchase Plan. Consists of 4,352,428 securities available for issuance under the 2006 Equity Plan and 3,510,784 of securities available for issuance under the Employee Stock Purchase Plan. The purpose of the 2006 Equity Plan is to motivate employees, officers and directors by providing equity ownership and compensation opportunities in Teradyne. The aggregate number of shares available under the 2006 Equity Plan as of December 31, 2023 was 4,352,428 shares of our common stock. The 2006 Equity Plan authorizes the grant of stock-based awards in the form of (1) non-qualified and incentive stock options, (2) stock appreciation rights, (3) restricted stock awards and restricted stock unit awards, (4) phantom stock, and (5) other stock-based awards. Awards may be tied to time-based vesting schedules and/or performance-based vesting measured by reference to performance criteria chosen by the Compensation Committee of the Board of Directors, which administers the 2006 Equity Plan. Awards may be made to any employee, officer, consultant and advisor of Teradyne and our subsidiaries, as well as to our directors. The maximum number of shares of stock-based awards that may be granted to one participant during any one fiscal year is 2,000,000 shares of common stock. As of December 31, 2023, total unrecognized compensation expense related to non-vested restricted stock units and options was $73.7 million and is expected to be recognized over a weighted average period of 2.5 years. 35 35 Table of Contents Table of Contents Table of Contents",
      "prior_body": "ASC 715-20, “Compensation—Retirement Benefits—Defined Benefit Plans,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715-20. The pension asset or liability represents the difference between the fair value of the pension plans’ assets and the projected benefit obligation as of December 31. For other postretirement benefit plans, the liability is the difference between the fair value of the plan’s assets and the accumulated postretirement benefit obligation as of December 31. For the year ended December 31, 2022, our pension income, which includes the U.S. Qualified Pension Plan (“U.S. Plan”), certain qualified plans for non-U.S. subsidiaries, and a U.S. Supplemental Executive Defined Benefit Plan, was approximately $19.7 million. Pension income/expense is calculated based upon a number of actuarial assumptions. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Plan assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 2.0% was an appropriate rate of return on assets to use for 2022. The December 31, 2022 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. We recognize net actuarial gains and losses and the change in the fair value of plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. We calculate the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.95% at December 31, 2022, up from 2.65% at December 31, 2021. We estimate that in 2023, we will recognize approximately $0.4 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2023 is based on a 4.95% discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. As of December 31, 2022, our pension plans had no unrecognized pension prior service cost. The assets of the U.S. Plan consist substantially of fixed income securities. U.S. Plan assets have decreased from $149.6 million at December 31, 2021 to $111.8 million at December 31, 2022, while the U.S. Plan’s liability decreased from $134.5 million at December 31, 2021 to $100.0 million at December 31, 2022. In 2022, the decrease in plan assets and plan liability was due to an increase in interest rates. In 2020, the accrued pension obligations for approximately 115 retiree participants were transferred to an insurance company and resulted in a $24.4 million reduction in the pension benefit obligation and pension assets. We recorded $2.2 million of pension actuarial loss and a settlement loss of $0.5 million related to the retiree group annuity transaction. Our funding policy is to make contributions to our pension plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2022, we made contributions of $3.2 million to the U.S. supplemental executive defined benefit pension plan, and $0.9 million to certain qualified plans for non-U.S. 41 Table of Contents subsidiaries. In 2023, we expect to contribute approximately $3.1 million to the U.S. supplemental executive defined benefit pension plan. Contributions to be made in 2023 to certain qualified plans for non-U.S. subsidiaries are based on local statutory requirements and are estimated at approximately $1.3 million. Equity Compensation Plans In addition to our 1996 Employee Stock Purchase Plan discussed in Note Q: “Stock-Based Compensation” in Notes to Consolidated Financial Statements, we have a 2006 Equity and Cash Compensation Incentive Plan (the “2006 Equity Plan”) under which equity securities are authorized for issuance. The 2006 Equity Plan was initially approved by stockholders on May 25, 2006. At our annual meeting of stockholders held May 21, 2013, our stockholders approved an amendment to the 2006 Equity Plan to increase the number of shares issuable thereunder by 10.0 million, for an aggregate of 32.0 million shares issuable thereunder, and our stockholders also approved an amendment to our 1996 Employee Stock Purchase Plan to increase the number of shares issuable thereunder by 5.0 million, for an aggregate of 30.4 million shares issuable thereunder. At our annual meeting of stockholders held May 12, 2015, our stockholders approved an amendment to the 2006 Equity Plan to extend its term until May 12, 2025. At our annual meeting of stockholders held May 7, 2021, our stockholders approved an amendment to our 1996 Employee Stock Purchase Plan to increase the number of shares issuable thereunder by 3.0 million, for an aggregate of 33.4 million shares issuable thereunder. The following table presents information about these plans as of December 31, 2022 (share numbers in thousands): Plan category Number of securitiesto be issued uponexercise ofoutstanding options,warrants and rights Weighted averageexercise price ofoutstanding options,warrants and rights Number of securities remainingavailable for future issuanceunder equity compensationplans (excluding securitiesreflected in column one) Equity plans approved by shareholders 1,505 (1) $ 55.90 8,954 (2) (1) Includes 1,317,544 shares of restricted stock units that are not included in the calculation of the weighted average exercise price. (2) Consists of 5,060,445 securities available for issuance under the 2006 Equity Plan and 3,893,933 of securities available for issuance under the Employee Stock Purchase Plan. The purpose of the 2006 Equity Plan is to motivate employees, officers and directors by providing equity ownership and compensation opportunities in Teradyne. The aggregate number of shares available under the 2006 Equity Plan as of December 31, 2022 was 5,060,445 shares of our common stock. The 2006 Equity Plan authorizes the grant of stock-based awards in the form of (1) non-qualified and incentive stock options, (2) stock appreciation rights, (3) restricted stock awards and restricted stock unit awards, (4) phantom stock, and (5) other stock-based awards. Awards may be tied to time-based vesting schedules and/or performance-based vesting measured by reference to performance criteria chosen by the Compensation Committee of the Board of Directors, which administers the 2006 Equity Plan. Awards may be made to any employee, officer, consultant and advisor of Teradyne and our subsidiaries, as well as, to our directors. The maximum number of shares of stock-based awards that may be granted to one participant during any one fiscal year is 2,000,000 shares of common stock. As of December 31, 2022, total unrecognized compensation expense related to non-vested restricted stock units and options was $61.1 million and is expected to be recognized over a weighted average period of 2.5 years. 42 subsidiaries. In 2023, we expect to contribute approximately $3.1 million to the U.S. supplemental executive defined benefit pension plan. Contributions to be made in 2023 to certain qualified plans for non-U.S. subsidiaries are based on local statutory requirements and are estimated at approximately $1.3 million. Equity Compensation Plans In addition to our 1996 Employee Stock Purchase Plan discussed in Note Q: “Stock-Based Compensation” in Notes to Consolidated Financial Statements, we have a 2006 Equity and Cash Compensation Incentive Plan (the “2006 Equity Plan”) under which equity securities are authorized for issuance. The 2006 Equity Plan was initially approved by stockholders on May 25, 2006. At our annual meeting of stockholders held May 21, 2013, our stockholders approved an amendment to the 2006 Equity Plan to increase the number of shares issuable thereunder by 10.0 million, for an aggregate of 32.0 million shares issuable thereunder, and our stockholders also approved an amendment to our 1996 Employee Stock Purchase Plan to increase the number of shares issuable thereunder by 5.0 million, for an aggregate of 30.4 million shares issuable thereunder. At our annual meeting of stockholders held May 12, 2015, our stockholders approved an amendment to the 2006 Equity Plan to extend its term until May 12, 2025. At our annual meeting of stockholders held May 7, 2021, our stockholders approved an amendment to our 1996 Employee Stock Purchase Plan to increase the number of shares issuable thereunder by 3.0 million, for an aggregate of 33.4 million shares issuable thereunder. The following table presents information about these plans as of December 31, 2022 (share numbers in thousands): Plan category Number of securitiesto be issued uponexercise ofoutstanding options,warrants and rights Weighted averageexercise price ofoutstanding options,warrants and rights Number of securities remainingavailable for future issuanceunder equity compensationplans (excluding securitiesreflected in column one) Equity plans approved by shareholders 1,505 (1) $ 55.90 8,954 (2) (1) Includes 1,317,544 shares of restricted stock units that are not included in the calculation of the weighted average exercise price. (2) Consists of 5,060,445 securities available for issuance under the 2006 Equity Plan and 3,893,933 of securities available for issuance under the Employee Stock Purchase Plan. The purpose of the 2006 Equity Plan is to motivate employees, officers and directors by providing equity ownership and compensation opportunities in Teradyne. The aggregate number of shares available under the 2006 Equity Plan as of December 31, 2022 was 5,060,445 shares of our common stock. The 2006 Equity Plan authorizes the grant of stock-based awards in the form of (1) non-qualified and incentive stock options, (2) stock appreciation rights, (3) restricted stock awards and restricted stock unit awards, (4) phantom stock, and (5) other stock-based awards. Awards may be tied to time-based vesting schedules and/or performance-based vesting measured by reference to performance criteria chosen by the Compensation Committee of the Board of Directors, which administers the 2006 Equity Plan. Awards may be made to any employee, officer, consultant and advisor of Teradyne and our subsidiaries, as well as, to our directors. The maximum number of shares of stock-based awards that may be granted to one participant during any one fiscal year is 2,000,000 shares of common stock. As of December 31, 2022, total unrecognized compensation expense related to non-vested restricted stock units and options was $61.1 million and is expected to be recognized over a weighted average period of 2.5 years. 42 subsidiaries. In 2023, we expect to contribute approximately $3.1 million to the U.S. supplemental executive defined benefit pension plan. Contributions to be made in 2023 to certain qualified plans for non-U.S. subsidiaries are based on local statutory requirements and are estimated at approximately $1.3 million."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.605,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Balance at December 31, 2020 $ 51,929 Deferral of new extended warranty revenue 43,597 Recognition of extended warranty deferred revenue (31,358 ) Balance at December 31, 2021 64,168 Deferral of new extended warranty revenue 33,686 Recognition of extended warranty deferred revenue (41,674 ) Balance at December 31, 2022 56,180 Deferral of new extended warranty revenue 14,330 Recognition of extended warranty deferred revenue (35,613 ) Balance at December 31, 2023 $ 34,897 Accounts Receivable and Allowance for Credit LossesTrade accounts receivable are recorded at the invoiced amount and do not bear interest.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "LIABILITIES",
      "prior_title": "LIABILITIES",
      "similarity_score": 0.602,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Current liabilities: Accounts payable $ 180,131 $ 139,722 Accrued employees’ compensation and withholdings 191,750 212,266 Deferred revenue and customer advances 99,804 148,285 Other accrued liabilities 114,712 112,271 Operating lease liabilities 17,522 18,594 Income taxes payable 48,653 65,010 Current debt — 50,115 Current liabilities held for sale 7,379 — Total current liabilities 659,951 746,263 Retirement plans liabilities 132,090 116,005 Long-term deferred revenue and customer advances 37,282 45,131 Deferred tax liabilities 183 3,267 Long-term other accrued liabilities 19,998 15,981 Long-term operating lease liabilities 65,092 64,176 Long-term income taxes payable 44,331 59,135 Long-term liabilities held for sale 2,000 — Total liabilities 960,927 1,049,958 Commitments and contingencies (Note M) Commitments and contingencies (Note M) Commitments and contingencies (Note M) Commitments and contingencies (Note M)\""
      ],
      "current_body": "Current liabilities: Accounts payable $ 180,131 $ 139,722 Accrued employees’ compensation and withholdings 191,750 212,266 Deferred revenue and customer advances 99,804 148,285 Other accrued liabilities 114,712 112,271 Operating lease liabilities 17,522 18,594 Income taxes payable 48,653 65,010 Current debt — 50,115 Current liabilities held for sale 7,379 — Total current liabilities 659,951 746,263 Retirement plans liabilities 132,090 116,005 Long-term deferred revenue and customer advances 37,282 45,131 Deferred tax liabilities 183 3,267 Long-term other accrued liabilities 19,998 15,981 Long-term operating lease liabilities 65,092 64,176 Long-term income taxes payable 44,331 59,135 Long-term liabilities held for sale 2,000 — Total liabilities 960,927 1,049,958 Commitments and contingencies (Note M) Commitments and contingencies (Note M) Commitments and contingencies (Note M) Commitments and contingencies (Note M)",
      "prior_body": "LIABILITIES Current liabilities: Current liabilities: Accounts payable Accounts payable Accrued employees’ compensation and withholdings Accrued employees’ compensation and withholdings Deferred revenue and customer advances Deferred revenue and customer advances Other accrued liabilities Other accrued liabilities Operating lease liabilities Operating lease liabilities Income taxes payable Income taxes payable Current debt Current debt Total current liabilities Total current liabilities Retirement plans liabilities Retirement plans liabilities Long-term deferred revenue and customer advances Long-term deferred revenue and customer advances Deferred tax liabilities Deferred tax liabilities Long-term other accrued liabilities Long-term other accrued liabilities Long-term operating lease liabilities Long-term operating lease liabilities Long-term income taxes payable Long-term income taxes payable Debt Debt Total liabilities Total liabilities Commitments and contingencies (Note M) Commitments and contingencies (Note M) Mezzanine equity: Mezzanine equity: Convertible common shares Convertible common shares SHAREHOLDERS’ EQUITY"
    },
    {
      "status": "MODIFIED",
      "current_title": "Year Ended December 31, 2020",
      "prior_title": "(in thousands)",
      "similarity_score": 0.599,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"$ 3,787 166,123 $ 20,765 $ 1,765,323 $ 33,516 $ 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 )\""
      ],
      "current_body": "$ 3,787 166,123 $ 20,765 $ 1,765,323 $ 33,516 $ 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 )",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in millions)",
      "prior_title": "Results of Operations",
      "similarity_score": 0.598,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Product revenues $ 2,096.3 $ 2,591.6 $ (495.3 ) Service revenues 580.0 563.5 16.5 $ 2,676.3 $ 3,155.0 $ (478.8 ) 29 29 Table of Contents Table of Contents Table of Contents Our product revenues decreased $495.3 million, or 19.1%, primarily due to lower tester sales in Semiconductor Test for compute and mobility applications, a decrease in sales in Storage Test of system level and hard disk drive testers, and a decrease in Wireless Test sales of connectivity test products.\"",
        "Reworded sentence: \"In 2023 and 2022, our five largest direct customers in aggregate accounted for 32% and 26% of our consolidated revenues, respectively.\""
      ],
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022",
      "prior_body": "Information pertaining to fiscal year 2020 results of operations, including a year-to-year comparison against fiscal year 2021, was included in our Annual Report on Form 10-K for the year ended December 31, 2021 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” which was filed with the SEC on February 23, 2022. This information is incorporated by reference herein. 33 Table of Contents The following table sets forth the percentage of total net revenues included in our consolidated statements of operations: Years Ended December 31, 2022 2021 Percentage of revenues: Revenues: Products 82.1 % 86.3 % Services 17.9 13.7 Total revenues 100.0 100.0 Cost of revenues: Cost of products 33.0 35.1 Cost of services 7.8 5.3 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 40.8 40.4 Gross profit 59.2 59.6 Operating expenses: Selling and administrative 17.7 14.8 Engineering and development 14.0 11.5 Acquired intangible assets amortization 0.6 0.6 Restructuring and other 0.5 0.3 Total operating expenses 32.8 27.2 Income from operations 26.4 32.4 Non-operating (income) expenses: Interest income (0.2 ) (0.1 ) Interest expense 0.1 0.5 Other (income) expense, net (0.2 ) 0.7 Income before income taxes 26.6 31.4 Income tax provision 4.0 4.0 Net income 22.7 % 27.4 % Revenues Revenues for our reportable segments were as follows: 2022 2021 2021-2022DollarChange (in millions) Semiconductor Test $ 2,080.6 $ 2,642.3 $ (561.7 ) System Test 469.3 467.7 1.6 Robotics 403.1 375.9 27.2 Wireless Test 201.7 216.9 (15.2 ) Corporate and Eliminations 0.3 — 0.3 $ 3,155.0 $ 3,702.9 $ (547.9 ) 34 The following table sets forth the percentage of total net revenues included in our consolidated statements of operations: Years Ended December 31, 2022 2021 Percentage of revenues: Revenues: Products 82.1 % 86.3 % Services 17.9 13.7 Total revenues 100.0 100.0 Cost of revenues: Cost of products 33.0 35.1 Cost of services 7.8 5.3 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 40.8 40.4 Gross profit 59.2 59.6 Operating expenses: Selling and administrative 17.7 14.8 Engineering and development 14.0 11.5 Acquired intangible assets amortization 0.6 0.6 Restructuring and other 0.5 0.3 Total operating expenses 32.8 27.2 Income from operations 26.4 32.4 Non-operating (income) expenses: Interest income (0.2 ) (0.1 ) Interest expense 0.1 0.5 Other (income) expense, net (0.2 ) 0.7 Income before income taxes 26.6 31.4 Income tax provision 4.0 4.0 Net income 22.7 % 27.4 % Revenues Revenues for our reportable segments were as follows: 2022 2021 2021-2022DollarChange (in millions) Semiconductor Test $ 2,080.6 $ 2,642.3 $ (561.7 ) System Test 469.3 467.7 1.6 Robotics 403.1 375.9 27.2 Wireless Test 201.7 216.9 (15.2 ) Corporate and Eliminations 0.3 — 0.3 $ 3,155.0 $ 3,702.9 $ (547.9 ) 34 The following table sets forth the percentage of total net revenues included in our consolidated statements of operations: Percentage of revenues: Revenues: Products Services Total revenues Cost of revenues: Cost of products Cost of services Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) Gross profit Operating expenses: Selling and administrative Engineering and development Acquired intangible assets amortization Restructuring and other Total operating expenses Income from operations Non-operating (income) expenses: Interest income Interest expense Other (income) expense, net Income before income taxes Income tax provision Net income Revenues Revenues for our reportable segments were as follows: 2021-2022 Semiconductor Test System Test Robotics Wireless Test Corporate and Eliminations 34 Table of Contents The decrease in Semiconductor Test revenues of $561.7 million, or 21.3%, was driven primarily by lower tester sales in mobile and high performance compute processor applications, partially offset by an increase in advance driver assistance systems (“ADAS”) tester sales. The increase in System Test revenues of $1.6 million, or 0.3%, was primarily due to higher sales in Defense/Aerospace and in Production Board Test, partially offset by a decline in Storage Test sales of system level testers. The rise in Robotics revenues of $27.2 million, or 7.2%, was driven primarily by higher demand for UR’s collaborative robotic arms and MiR’s autonomous mobile robots, partially offset by changes in foreign exchange rates. The decrease in Wireless Test revenues of $15.2 million, or 7.0%, was primarily due to a decrease in cellular test product sales, partially offset by an increase in ultra-wide band test product sales. Our reportable segments accounted for the following percentages of consolidated revenues: 2022 2021 Semiconductor Test 66 % 71 % System Test 15 13 Robotics 13 10 Wireless Test 6 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2022 2021 Taiwan 20 % 30 % Korea 17 14 China 16 17 United States 15 11 Europe 9 7 Japan 5 4 Malaysia 5 4 Thailand 4 4 Philippines 4 5 Singapore 3 3 Rest of the World 2 1 100 % 100 % (1) Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2022 2021 2021-2022DollarChange (in millions) Product revenues $ 2,591.6 $ 3,196.6 $ (605.0 ) Service revenues 563.5 506.3 57.2 $ 3,155.0 $ 3,702.9 $ (547.9 ) 35 The decrease in Semiconductor Test revenues of $561.7 million, or 21.3%, was driven primarily by lower tester sales in mobile and high performance compute processor applications, partially offset by an increase in advance driver assistance systems (“ADAS”) tester sales. The increase in System Test revenues of $1.6 million, or 0.3%, was primarily due to higher sales in Defense/Aerospace and in Production Board Test, partially offset by a decline in Storage Test sales of system level testers. The rise in Robotics revenues of $27.2 million, or 7.2%, was driven primarily by higher demand for UR’s collaborative robotic arms and MiR’s autonomous mobile robots, partially offset by changes in foreign exchange rates. The decrease in Wireless Test revenues of $15.2 million, or 7.0%, was primarily due to a decrease in cellular test product sales, partially offset by an increase in ultra-wide band test product sales. Our reportable segments accounted for the following percentages of consolidated revenues: 2022 2021 Semiconductor Test 66 % 71 % System Test 15 13 Robotics 13 10 Wireless Test 6 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2022 2021 Taiwan 20 % 30 % Korea 17 14 China 16 17 United States 15 11 Europe 9 7 Japan 5 4 Malaysia 5 4 Thailand 4 4 Philippines 4 5 Singapore 3 3 Rest of the World 2 1 100 % 100 % (1) Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2022 2021 2021-2022DollarChange (in millions) Product revenues $ 2,591.6 $ 3,196.6 $ (605.0 ) Service revenues 563.5 506.3 57.2 $ 3,155.0 $ 3,702.9 $ (547.9 ) 35 The decrease in Semiconductor Test revenues of $561.7 million, or 21.3%, was driven primarily by lower tester sales in mobile and high performance compute processor applications, partially offset by an increase in advance driver assistance systems (“ADAS”) tester sales. The increase in System Test revenues of $1.6 million, or 0.3%, was primarily due to higher sales in Defense/Aerospace and in Production Board Test, partially offset by a decline in Storage Test sales of system level testers. The rise in Robotics revenues of $27.2 million, or 7.2%, was driven primarily by higher demand for UR’s collaborative robotic arms and MiR’s autonomous mobile robots, partially offset by changes in foreign exchange rates. The decrease in Wireless Test revenues of $15.2 million, or 7.0%, was primarily due to a decrease in cellular test product sales, partially offset by an increase in ultra-wide band test product sales. Our reportable segments accounted for the following percentages of consolidated revenues: Semiconductor Test System Test Robotics Wireless Test Revenues by country as a percentage of total revenues were as follows (1): Taiwan Korea China United States Europe Japan Malaysia Thailand Philippines Singapore Rest of the World Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2021-2022 Product revenues Service revenues 35 Table of Contents Our product revenues decreased $605.0 million, or 18.9%, primarily due to lower tester sales in Semiconductor Test for mobile and high performance compute processor applications, and a decrease in cellular test product sales in Wireless Test, partially offset by the rise in Robotics revenues driven primarily by elevated demand for collaborative robotic arms and autonomous mobile robots. Our service revenues increased $57.2 million or 11.3% primarily in Semiconductor Test and Storage Test. In 2021, revenues from Taiwan Semiconductor Manufacturing Company Ltd., a customer of our Semiconductor Test segment, accounted for 12% of our consolidated revenues. In 2022 and 2021, our five largest direct customers in aggregate accounted for 26% and 33% of our consolidated revenues, respectively. We estimate consolidated revenues driven by Qualcomm, a customer of our Semiconductor Test, System Test and Wireless Test segments, combining direct and indirect sales, accounted for approximately 11% of our consolidated revenues in 2022 and less than 10% in 2021. We estimate consolidated revenues driven by one OEM customer, of our Semiconductor Test and Wireless Test segments, combining direct sales to that customer with sales to the customer’s OSATs, accounted for less than 10% of our consolidated revenues in 2022 and 19% of our consolidated revenues in 2021. Gross Profit 2022 2021 2021-2022Dollar /PointChange (in millions) Gross profit $ 1,867.2 $ 2,206.7 $ (339.5 ) Percent of total revenues 59.2 % 59.6 % (0.4 ) Gross profit as a percent of total revenues decreased by 0.4 points, primarily due to higher service costs partially offset by favorable product mix and lower variable compensation. The breakout of product and service gross profit was as follows: 2022 2021 2021-2022Dollar /PointChange (in millions) Product gross profit $ 1,549.0 $ 1,896.5 $ (347.5 ) Percent of product revenues 59.8 % 59.3 % 0.5 Service gross profit $ 318.1 $ 310.2 $ 7.9 Percent of service revenues 56.5 % 61.3 % (4.8 ) Service revenues gross profit percentage decreased 4.8% primarily due to lower margins in Semiconductor Test driven by an increase in headcount. We assess the carrying value of our inventory on a quarterly basis by estimating future demand and comparing that demand against on-hand and on-order inventory positions. Forecasted revenues information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. During the year ended December 31, 2022, we recorded an inventory provision of $31.5 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $31.5 million of total excess and obsolete provisions, $21.5 million was related to Semiconductor Test, $4.6 million was related to Wireless Test, $3.7 million was related to Robotics, and $1.7 million was related to System Test. 36 Our product revenues decreased $605.0 million, or 18.9%, primarily due to lower tester sales in Semiconductor Test for mobile and high performance compute processor applications, and a decrease in cellular test product sales in Wireless Test, partially offset by the rise in Robotics revenues driven primarily by elevated demand for collaborative robotic arms and autonomous mobile robots. Our service revenues increased $57.2 million or 11.3% primarily in Semiconductor Test and Storage Test. In 2021, revenues from Taiwan Semiconductor Manufacturing Company Ltd., a customer of our Semiconductor Test segment, accounted for 12% of our consolidated revenues. In 2022 and 2021, our five largest direct customers in aggregate accounted for 26% and 33% of our consolidated revenues, respectively. We estimate consolidated revenues driven by Qualcomm, a customer of our Semiconductor Test, System Test and Wireless Test segments, combining direct and indirect sales, accounted for approximately 11% of our consolidated revenues in 2022 and less than 10% in 2021. We estimate consolidated revenues driven by one OEM customer, of our Semiconductor Test and Wireless Test segments, combining direct sales to that customer with sales to the customer’s OSATs, accounted for less than 10% of our consolidated revenues in 2022 and 19% of our consolidated revenues in 2021. Gross Profit 2022 2021 2021-2022Dollar /PointChange (in millions) Gross profit $ 1,867.2 $ 2,206.7 $ (339.5 ) Percent of total revenues 59.2 % 59.6 % (0.4 ) Gross profit as a percent of total revenues decreased by 0.4 points, primarily due to higher service costs partially offset by favorable product mix and lower variable compensation. The breakout of product and service gross profit was as follows: 2022 2021 2021-2022Dollar /PointChange (in millions) Product gross profit $ 1,549.0 $ 1,896.5 $ (347.5 ) Percent of product revenues 59.8 % 59.3 % 0.5 Service gross profit $ 318.1 $ 310.2 $ 7.9 Percent of service revenues 56.5 % 61.3 % (4.8 ) Service revenues gross profit percentage decreased 4.8% primarily due to lower margins in Semiconductor Test driven by an increase in headcount. We assess the carrying value of our inventory on a quarterly basis by estimating future demand and comparing that demand against on-hand and on-order inventory positions. Forecasted revenues information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. During the year ended December 31, 2022, we recorded an inventory provision of $31.5 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $31.5 million of total excess and obsolete provisions, $21.5 million was related to Semiconductor Test, $4.6 million was related to Wireless Test, $3.7 million was related to Robotics, and $1.7 million was related to System Test. 36 Our product revenues decreased $605.0 million, or 18.9%, primarily due to lower tester sales in Semiconductor Test for mobile and high performance compute processor applications, and a decrease in cellular test product sales in Wireless Test, partially offset by the rise in Robotics revenues driven primarily by elevated demand for collaborative robotic arms and autonomous mobile robots. Our service revenues increased $57.2 million or 11.3% primarily in Semiconductor Test and Storage Test. In 2021, revenues from Taiwan Semiconductor Manufacturing Company Ltd., a customer of our Semiconductor Test segment, accounted for 12% of our consolidated revenues. In 2022 and 2021, our five largest direct customers in aggregate accounted for 26% and 33% of our consolidated revenues, respectively. We estimate consolidated revenues driven by Qualcomm, a customer of our Semiconductor Test, System Test and Wireless Test segments, combining direct and indirect sales, accounted for approximately 11% of our consolidated revenues in 2022 and less than 10% in 2021. We estimate consolidated revenues driven by one OEM customer, of our Semiconductor Test and Wireless Test segments, combining direct sales to that customer with sales to the customer’s OSATs, accounted for less than 10% of our consolidated revenues in 2022 and 19% of our consolidated revenues in 2021."
    },
    {
      "status": "MODIFIED",
      "current_title": "Concentration of Credit Risk",
      "prior_title": "Plan category",
      "similarity_score": 0.597,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable.\"",
        "Reworded sentence: \"Concentrations of credit risk with respect to accounts receivable 36 36 Table of Contents Table of Contents Table of Contents are limited due to the large number of geographically dispersed customers.\"",
        "Reworded sentence: \"As of December 31, 2023, a customer of our Semiconductor Test segment, Texas Instruments Inc., accounted for 18% of our accounts receivable balance.\""
      ],
      "current_body": "Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Our cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Our fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. We place forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable 36 36 Table of Contents Table of Contents Table of Contents are limited due to the large number of geographically dispersed customers. We perform ongoing credit evaluations of our customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. As of December 31, 2023, a customer of our Semiconductor Test segment, Texas Instruments Inc., accounted for 18% of our accounts receivable balance. There were no customers who accounted for more than 10% of our accounts receivable balance as of December 31, 2022.",
      "prior_body": "Equity plans approved by shareholders Includes 1,317,544 shares of restricted stock units that are not included in the calculation of the weighted average exercise price. Consists of 5,060,445 securities available for issuance under the 2006 Equity Plan and 3,893,933 of securities available for issuance under the Employee Stock Purchase Plan. The purpose of the 2006 Equity Plan is to motivate employees, officers and directors by providing equity ownership and compensation opportunities in Teradyne. The aggregate number of shares available under the 2006 Equity Plan as of December 31, 2022 was 5,060,445 shares of our common stock. The 2006 Equity Plan authorizes the grant of stock-based awards in the form of (1) non-qualified and incentive stock options, (2) stock appreciation rights, (3) restricted stock awards and restricted stock unit awards, (4) phantom stock, and (5) other stock-based awards. Awards may be tied to time-based vesting schedules and/or performance-based vesting measured by reference to performance criteria chosen by the Compensation Committee of the Board of Directors, which administers the 2006 Equity Plan. Awards may be made to any employee, officer, consultant and advisor of Teradyne and our subsidiaries, as well as, to our directors. The maximum number of shares of stock-based awards that may be granted to one participant during any one fiscal year is 2,000,000 shares of common stock. As of December 31, 2022, total unrecognized compensation expense related to non-vested restricted stock units and options was $61.1 million and is expected to be recognized over a weighted average period of 2.5 years. 42 Table of Contents Performance Graph The following graph compares the change in our cumulative total shareholder return in our common stock with (i) the Standard & Poor’s 500 Index and (ii) the Morningstar Global Semiconductor Equipment & Materials GR USD Industry Group. The comparison assumes $100.00 was invested on December 31, 2017 in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any. Historic stock price performance is not necessarily indicative of future price performance. Recently Issued Accounting Pronouncements For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. Item 7A: Quantitative and Qualitative Disclosures about Market Risks Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Our cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Our fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. We place forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically dispersed customers. We perform ongoing credit evaluations of our customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. There were no customers who accounted for more than 10% of our accounts receivable balance as of December 31, 2022 and December 31, 2021. In addition to market risks described in our Annual Report on Form 10-K, we have an equity price risk related to the fair value of our convertible senior unsecured notes issued in December 2016. In December 2016, Teradyne issued $460 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023. As of December 31, 2022, $50.2 million of principal remained outstanding and 43 Performance Graph The following graph compares the change in our cumulative total shareholder return in our common stock with (i) the Standard & Poor’s 500 Index and (ii) the Morningstar Global Semiconductor Equipment & Materials GR USD Industry Group. The comparison assumes $100.00 was invested on December 31, 2017 in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any. Historic stock price performance is not necessarily indicative of future price performance. Recently Issued Accounting Pronouncements For the year ended December 31, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements. Item 7A: Quantitative and Qualitative Disclosures about Market Risks Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Our cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Our fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. We place forward currency contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically dispersed customers. We perform ongoing credit evaluations of our customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. There were no customers who accounted for more than 10% of our accounts receivable balance as of December 31, 2022 and December 31, 2021. In addition to market risks described in our Annual Report on Form 10-K, we have an equity price risk related to the fair value of our convertible senior unsecured notes issued in December 2016. In December 2016, Teradyne issued $460 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023. As of December 31, 2022, $50.2 million of principal remained outstanding and 43"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands, except per share amount)",
      "prior_title": "SHAREHOLDERS’ EQUITY",
      "similarity_score": 0.593,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Revenues: Products $ 2,096,286 $ 2,591,572 $ 3,196,575 Services 580,012 563,473 506,306 Total revenues 2,676,298 3,155,045 3,702,881 Cost of revenues: Cost of products 882,892 1,042,555 1,300,106 Cost of services 256,658 245,339 196,119 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 1,139,550 1,287,894 1,496,225 Gross profit 1,536,748 1,867,151 2,206,656 Operating expenses: Selling and administrative 577,315 558,103 547,559 Engineering and development 418,089 440,591 427,609 Acquired intangible assets amortization 18,999 19,333 21,456 Restructuring and other 21,277 17,185 9,312 Total operating expenses 1,035,680 1,035,212 1,005,936 Income from operations 501,068 831,939 1,200,720 Non-operating (income) expenses: Interest income (27,348 ) (6,379 ) (2,627 ) Interest expense 3,806 3,719 17,820 Other (income) expense, net (962 ) (5,786 ) 24,572 Income before income taxes 525,572 840,385 1,160,955 Income tax provision 76,820 124,884 146,366 Net income $ 448,752 $ 715,501 $ 1,014,589 Net income per common share: Basic $ 2.91 $ 4.52 $ 6.15 Diluted $ 2.73 $ 4.22 $ 5.53 Weighted average common shares—basic 154,310 158,434 164,960 Weighted average common shares—diluted 164,304 169,734 183,625 The accompanying notes are an integral part of the consolidated financial statements.\""
      ],
      "current_body": "ASSETS Current assets: Cash and cash equivalents $ 757,571 $ 854,773 Marketable securities 62,154 39,612 Accounts receivable, less allowance for credit losses of $1,988 and $1,955 in 2023 and 2022, respectively 422,124 491,145 Inventories, net 309,974 325,019 Prepayments 548,970 532,962 Other current assets 37,992 14,404 Current assets held for sale 23,250 — Total current assets 2,162,035 2,257,915 Property, plant and equipment, net 445,492 418,683 Operating lease right-of-use assets, net 73,417 73,734 Marketable securities 117,434 110,777 Deferred tax assets 175,775 142,784 Retirement plans assets 11,504 11,761 Other assets 38,580 28,925 Acquired intangible assets, net 35,404 53,478 Goodwill 415,652 403,195 Long-term assets held for sale 11,531 — Total assets $ 3,486,824 $ 3,501,252",
      "prior_body": "SHAREHOLDERS’ EQUITY Common stock, $0.125 par value, 1,000,000 shares authorized, 155,759 and 162,251 Common stock, $0.125 par value, 1,000,000 shares authorized, 155,759 and 162,251 shares issued and outstanding at December 31, 2022 and 2021, respectively shares issued and outstanding at December 31, 2022 and 2021, respectively Additional paid-in capital Additional paid-in capital Accumulated other comprehensive loss Accumulated other comprehensive loss Retained earnings Retained earnings Total shareholders’ equity Total shareholders’ equity Total liabilities, convertible common shares and shareholders’ equity Total liabilities, convertible common shares and shareholders’ equity The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 48 48 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended December 31, 2022 2021 2020 (in thousands, except per share amount) Revenues: Products $ 2,591,572 $ 3,196,575 $ 2,690,906 Services 563,473 506,306 430,563 Total revenues 3,155,045 3,702,881 3,121,469 Cost of revenues: Cost of products 1,042,555 1,300,106 1,157,476 Cost of services 245,339 196,119 178,252 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 1,287,894 1,496,225 1,335,728 Gross profit 1,867,151 2,206,656 1,785,741 Operating expenses: Selling and administrative 558,103 547,559 464,769 Engineering and development 440,591 427,609 374,964 Acquired intangible assets amortization 19,333 21,456 30,803 Restructuring and other 17,185 9,312 (13,202 ) Total operating expenses 1,035,212 1,005,936 857,334 Income from operations 831,939 1,200,720 928,407 Non-operating (income) expenses: Interest income (6,379 ) (2,627 ) (5,982 ) Interest expense 3,719 17,820 24,182 Other (income) expense, net (5,786 ) 24,572 9,192 Income before income taxes 840,385 1,160,955 901,015 Income tax provision 124,884 146,366 116,868 Net income $ 715,501 $ 1,014,589 $ 784,147 Net income per common share: Basic $ 4.52 $ 6.15 $ 4.72 Diluted $ 4.22 $ 5.53 $ 4.28 Weighted average common shares—basic 158,434 164,960 166,120 Weighted average common shares—diluted 169,734 183,625 183,042 The accompanying notes are an integral part of the consolidated financial statements. 49 TERADYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended December 31, 2022 2021 2020 (in thousands, except per share amount) Revenues: Products $ 2,591,572 $ 3,196,575 $ 2,690,906 Services 563,473 506,306 430,563 Total revenues 3,155,045 3,702,881 3,121,469 Cost of revenues: Cost of products 1,042,555 1,300,106 1,157,476 Cost of services 245,339 196,119 178,252 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 1,287,894 1,496,225 1,335,728 Gross profit 1,867,151 2,206,656 1,785,741 Operating expenses: Selling and administrative 558,103 547,559 464,769 Engineering and development 440,591 427,609 374,964 Acquired intangible assets amortization 19,333 21,456 30,803 Restructuring and other 17,185 9,312 (13,202 ) Total operating expenses 1,035,212 1,005,936 857,334 Income from operations 831,939 1,200,720 928,407 Non-operating (income) expenses: Interest income (6,379 ) (2,627 ) (5,982 ) Interest expense 3,719 17,820 24,182 Other (income) expense, net (5,786 ) 24,572 9,192 Income before income taxes 840,385 1,160,955 901,015 Income tax provision 124,884 146,366 116,868 Net income $ 715,501 $ 1,014,589 $ 784,147 Net income per common share: Basic $ 4.52 $ 6.15 $ 4.72 Diluted $ 4.22 $ 5.53 $ 4.28 Weighted average common shares—basic 158,434 164,960 166,120 Weighted average common shares—diluted 169,734 183,625 183,042 The accompanying notes are an integral part of the consolidated financial statements. 49 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our warrant transactions could impact the value of our stock.",
      "prior_title": "Our convertible note hedge and warrant transactions could impact the value of our stock.",
      "similarity_score": 0.582,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"On December 12, 2016, we completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) that matured on December 15, 2023.\"",
        "Reworded sentence: \"The Warrant Transactions, which expire between March 18, 2024 and July 10, 2024, cover, subject to customary 14 14 Table of Contents Table of Contents Table of Contents anti-dilution adjustments, approximately 14.7 million shares of our common stock.\""
      ],
      "current_body": "On December 12, 2016, we completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) that matured on December 15, 2023. Concurrent with the offering of the Notes, we entered into convertible note hedge transactions with the initial purchasers or their affiliates (the “Option Counterparties”). Separately and concurrent with the pricing of the Notes, we entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which we sold net-share-settled (or, at our election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions, which expire between March 18, 2024 and July 10, 2024, cover, subject to customary 14 14 Table of Contents Table of Contents Table of Contents anti-dilution adjustments, approximately 14.7 million shares of our common stock. The strike price of the warrants is $39.40 per share. The Warrant Transactions could result in increased common stock outstanding to the extent that the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants.",
      "prior_body": "Concurrent with the offering of the Notes, we entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.46. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 1.6 million shares of our common stock. On November 4, 2021, we made an irrevocable election under the indenture to require the principal portion of the remaining Notes to be settled in cash. Separately and concurrent with the pricing of the Notes, we entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which we sold net-share-settled (or, at our election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of our common stock. The strike price of the warrants is $39.48 per share. The Warrant Transactions could have a dilutive effect to our common stock to the extent that the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. 18 Table of Contents The Note Hedge Transactions are expected to reduce the potential dilution to our common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of our common stock exceeds the applicable strike price of the warrants. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to our common stock and/or purchase shares of our common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to our common stock or by selling our common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely impact the value of our common stock and the Notes. We may not be able to pay our debt and other obligations. If our cash flows are inadequate to meet our obligations, we could face substantial liquidity problems. If we are unable to generate sufficient cash flows or otherwise obtain funds necessary to make required payments on the Notes or certain of our other obligations, we would be in default under the terms thereof, which would permit the holders of those obligations to accelerate their maturity and also could cause defaults under future indebtedness we may incur. Any such default could have a material adverse effect on our business, prospects, financial position and operating results. In addition, we cannot be certain that we would be able to repay amounts due on the Notes if those obligations were to be accelerated following the occurrence of any other event of default as defined in the instruments creating those obligations, or if the holders of the Notes require us to repurchase the Notes upon the occurrence of a fundamental change involving us. Moreover, we cannot be certain that we will have sufficient funds or will be able to arrange for financing to pay the principal amount due on the Notes at maturity. Foreign currency exchange rates and fluctuations in those rates may affect the Company’s ability to realize projected growth rates in its sales and earnings. Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Robotics revenue is denominated in foreign currencies. Correspondingly, our results of operations and our ability to realize projected growth rates in sales and earnings in Robotics could be adversely affected if the U.S. dollar strengthens significantly against foreign currencies. Risks Related to Operations Our operating results are likely to fluctuate significantly. Our operating results are affected by a wide variety of factors that could materially adversely affect revenues or profitability. The following factors could impact future operations: • a worldwide economic slowdown or disruption in the global financial or industrial markets; • cost increases from inflation on materials, employee wages, third party labor, and contract manufacturing; • competitive pressures on selling prices; • our ability to introduce, and the market acceptance of, new products; • changes in product revenues mix resulting from changes in customer demand; 19 The Note Hedge Transactions are expected to reduce the potential dilution to our common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of our common stock exceeds the applicable strike price of the warrants. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to our common stock and/or purchase shares of our common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to our common stock or by selling our common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely impact the value of our common stock and the Notes. We may not be able to pay our debt and other obligations. If our cash flows are inadequate to meet our obligations, we could face substantial liquidity problems. If we are unable to generate sufficient cash flows or otherwise obtain funds necessary to make required payments on the Notes or certain of our other obligations, we would be in default under the terms thereof, which would permit the holders of those obligations to accelerate their maturity and also could cause defaults under future indebtedness we may incur. Any such default could have a material adverse effect on our business, prospects, financial position and operating results. In addition, we cannot be certain that we would be able to repay amounts due on the Notes if those obligations were to be accelerated following the occurrence of any other event of default as defined in the instruments creating those obligations, or if the holders of the Notes require us to repurchase the Notes upon the occurrence of a fundamental change involving us. Moreover, we cannot be certain that we will have sufficient funds or will be able to arrange for financing to pay the principal amount due on the Notes at maturity. Foreign currency exchange rates and fluctuations in those rates may affect the Company’s ability to realize projected growth rates in its sales and earnings. Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Robotics revenue is denominated in foreign currencies. Correspondingly, our results of operations and our ability to realize projected growth rates in sales and earnings in Robotics could be adversely affected if the U.S. dollar strengthens significantly against foreign currencies. Risks Related to Operations Our operating results are likely to fluctuate significantly. Our operating results are affected by a wide variety of factors that could materially adversely affect revenues or profitability. The following factors could impact future operations: • a worldwide economic slowdown or disruption in the global financial or industrial markets; • cost increases from inflation on materials, employee wages, third party labor, and contract manufacturing; • competitive pressures on selling prices; • our ability to introduce, and the market acceptance of, new products; • changes in product revenues mix resulting from changes in customer demand; 19 The Note Hedge Transactions are expected to reduce the potential dilution to our common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of our common stock exceeds the applicable strike price of the warrants. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to our common stock and/or purchase shares of our common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to our common stock or by selling our common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely impact the value of our common stock and the Notes."
    },
    {
      "status": "MODIFIED",
      "current_title": "Marketable Securities",
      "prior_title": "Marketable Securities",
      "similarity_score": 0.581,
      "confidence": "low",
      "key_changes": [
        "Removed sentence: \"Marketable Securities Teradyne’s equity and debt mutual funds are classified as Level 1 and available-for-sale debt securities are classified as Level 2.\"",
        "Removed sentence: \"Contingent consideration is classified as Level 3.\"",
        "Removed sentence: \"The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors.\"",
        "Removed sentence: \"These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities.\"",
        "Reworded sentence: \"During the years ended December 31, 2023 and 2022, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments.\""
      ],
      "current_body": "Teradyne’s equity and debt mutual funds are classified as Level 1 and available-for-sale debt securities are classified as Level 2. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. During the years ended December 31, 2023 and 2022, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in 2023, 2022, and 2021 were $0.6 million, $0.8 million, and $3.1 million, respectively. Realized losses recorded in 2023 and 2022 were $0.3 million and $1.0 million, respectively. No realized losses were recorded in 2021. Realized gains and losses are included in other (income) expense, net. Unrealized gains on equity securities recorded during the years ended December 31, 2023, 2022 and 2021 were $8.9 million, $1.9 million and $5.1 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2023, 2022, and 2021 were $1.7 million, $11.6 million and $1.8 million, respectively. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale debt securities are included in accumulated other comprehensive income (loss) on the balance sheet. The cost of securities sold is based on average cost. 55 55 Table of Contents Table of Contents Table of Contents The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023 and 2022: The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023 and 2022: December 31, 2023 Quoted Pricesin ActiveMarkets forIdenticalInstruments(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Total (in thousands) Assets Cash $ 298,156 $ — $ — $ 298,156 Cash equivalents 453,298 6,117 — 459,415 Available for sale securities: Corporate debt securities — 52,734 — 52,734 U.S. Treasury securities — 41,808 — 41,808 Commercial paper — 1,667 — 1,667 Debt mutual funds 8,773 — — 8,773 U.S. government agency securities — 4,892 — 4,892 Certificates of deposit and time deposits — 21,772 — 21,772 Non-U.S. government securities — 810 — 810 Equity securities: Mutual funds 47,132 — — 47,132 Total $ 807,359 $ 129,800 $ — $ 937,159 Derivative assets — 18,746 — 18,746 Total $ 807,359 $ 148,546 $ — $ 955,905 Liabilities Derivative liabilities — 2,545 — 2,545 Total $ — $ 2,545 $ — $ 2,545 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 751,454 $ 6,117 $ — $ 757,571 Marketable securities — 62,154 — 62,154 Long-term marketable securities 55,905 61,529 — 117,434 Other current assets — 18,746 — 18,746 Total $ 807,359 $ 148,546 $ — $ 955,905 Liabilities Other current liabilities $ — $ 2,545 $ — $ 2,545 Total $ — $ 2,545 $ — $ 2,545 56 Table of Contents December 31, 2022 Quoted Pricesin ActiveMarkets forIdenticalInstruments(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Total (in thousands) Assets Cash $ 632,417 $ — $ — $ 632,417 Cash equivalents 161,767 60,589 — 222,356 Available for sale securities: Corporate debt securities — 50,856 — 50,856 U.S. Treasury securities — 39,649 — 39,649 Commercial paper — 7,159 — 7,159 Debt mutual funds 6,580 — — 6,580 U.S. government agency securities — 6,352 — 6,352 Certificates of deposit and time deposits — 1,740 — 1,740 Non-U.S. government securities — 535 — 535 Equity securities: Mutual funds 37,518 — — 37,518 Total $ 838,282 $ 166,880 $ — $ 1,005,162 Derivative assets — 86 — 86 Total $ 838,282 $ 166,966 $ — $ 1,005,248 Liabilities Derivative liabilities — 4,215 — 4,215 Total $ — $ 4,215 $ — $ 4,215 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 794,184 $ 60,589 $ — $ 854,773 Marketable securities — 39,612 — 39,612 Long-term marketable securities 44,098 66,679 — 110,777 Other current assets — 86 — 86 Total $ 838,282 $ 166,966 $ — $ 1,005,248 Liabilities Other current liabilities $ — $ 4,215 $ — $ 4,215 Total $ — $ 4,215 $ — $ 4,215 The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2023 and 2022 were as follows: December 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 757,571 $ 757,571 $ 854,773 $ 854,773 Marketable securities 179,588 179,588 150,389 150,389 Derivative assets 18,746 18,746 86 86 Liabilities Derivative liabilities 2,545 2,545 4,215 4,215 Convertible debt (1) — — 50,115 139,007 (1)The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features. The fair values of accounts receivable, net and accounts payable approximate the carrying amount due to the short-term nature of these instruments. 57 Table of Contents The following tables summarize the composition of available-for-sale marketable securities at December 31, 2023 and 2022: December 31, 2023 Available-for-Sale Cost UnrealizedGain Unrealized(Loss) Fair MarketValue Fair MarketValue of Investmentswith Unrealized Losses (in thousands) Corporate debt securities $ 56,458 $ 201 $ (3,925 ) $ 52,734 $ 44,263 U.S. Treasury securities 45,725 14 (3,931 ) 41,808 35,080 Certificates of deposit and time deposits 21,772 — — 21,772 — Debt mutual funds 9,081 — (308 ) 8,773 3,303 U.S. government agency securities 4,898 — (6 ) 4,892 4,892 Commercial paper 1,633 34 — 1,667 — Non-U.S. government securities 810 — — 810 — $ 140,377 $ 249 $ (8,170 ) $ 132,456 $ 87,538 Reported as follows: Cost UnrealizedGain Unrealized(Loss) Fair MarketValue Fair MarketValue of Investmentswith Unrealized Losses (in thousands) Marketable securities $ 62,385 $ 36 $ (267 ) $ 62,154 $ 34,844 Long-term marketable securities 77,992 213 (7,903 ) $ 70,302 52,694 $ 140,377 $ 249 $ (8,170 ) $ 132,456 $ 87,538 December 31, 2022 Available-for-Sale Cost UnrealizedGain Unrealized(Loss) Fair MarketValue Fair MarketValue of Investmentswith Unrealized Losses (in thousands) Corporate debt securities $ 57,006 $ 3 $ (6,153 ) $ 50,856 $ 50,667 U.S. Treasury securities 44,030 — (4,381 ) 39,649 39,649 Commercial paper 7,089 70 — 7,159 — Debt mutual funds 6,997 — (417 ) 6,580 3,095 U.S. government agency securities 6,442 — (90 ) 6,352 6,352 Certificates of deposit and time deposits 1,740 — — 1,740 — Non-U.S. government securities 535 — — 535 — $ 123,839 $ 73 $ (11,041 ) $ 112,871 $ 99,763 Reported as follows: Cost UnrealizedGain Unrealized(Loss) Fair MarketValue Fair MarketValue of Investmentswith Unrealized Losses (in thousands) Marketable securities $ 39,950 $ 70 $ (408 ) $ 39,612 $ 30,713 Long-term marketable securities 83,889 3 (10,633 ) $ 73,259 69,050 $ 123,839 $ 73 $ (11,041 ) $ 112,871 $ 99,763 As of December 31, 2023, the fair market value of investments with unrealized losses less than one year and greater than one year totaled $22.3 million and $65.2 million, respectively. As of December 31, 2022, the fair market value of investments with unrealized losses less than one year and greater than one year totaled $66.3 million and $33.4 million, respectively. 58 Table of Contents Teradyne reviews its investments to identify and evaluate investments that have an indication of possible impairment. Based on this review, Teradyne determined that the unrealized losses related to these investments at December 31, 2023 and 2022 were not other than temporary. The contractual maturities of investments in available-for-sale marketable securities held at December 31, 2023 were as follows: Cost Fair Value (in thousands) Due within one year $ 62,385 $ 62,154 Due after 1 year through 5 years 23,703 23,319 Due after 5 years through 10 years 6,049 5,735 Due after 10 years 39,159 32,475 Total $ 131,296 $ 123,683 Contractual maturities of investments in available-for-sale marketable securities held at December 31, 2023 exclude debt mutual funds with the fair market value of $8.8 million as they do not have a contractual maturity date. Derivatives Teradyne conducts business in various foreign countries, with certain transactions denominated in local currencies. As a result, Teradyne is exposed to risks relating to changes in foreign currency exchange rates. Teradyne’s foreign currency risk management objective is to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, and changes in its cash inflows attributable to the forecasted cash flows from certain foreign currency denominated revenues. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies. Teradyne also enters into foreign currency forward and option contracts designated as cash flow hedges to hedge the risk of changes in its cash inflows attributable to changes in foreign currency exchange rates. The cash flow hedges have maturities of less than six months and mature in the period of revenue recognition for certain products and services in backlog and forecasted to be recognized in a future period. Teradyne evaluates cash flow hedges for effectiveness at inception based on the critical terms match method. The hedges are not expected to incur any ineffectiveness however a quarterly qualitative assessment of effectiveness is done to determine if the critical terms match method remains appropriate to use. The change in fair value of the contracts is recorded in accumulated other comprehensive income (loss) and reclassified to earnings at maturity date. Teradyne does not use derivative financial instruments for speculative purposes. 59 Table of Contents At December 31, 2023 and 2022, to hedge certain of its local currency balance sheet assets and liabilities, 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: Net Notional Value December 31,2023 December 31, 2022 (in millions) Currency Hedged (Buy/Sell) U.S. dollar/Taiwan dollar $ 42.7 $ 29.2 U.S. dollar/Danish krone 36.0 — U.S. dollar/Japanese yen 11.0 37.1 U.S. dollar/Korean won 7.2 6.4 U.S. dollar/British pound sterling 1.5 1.2 Euro/U.S. dollar 25.3 38.4 Singapore dollar/U.S. dollar 16.6 33.5 Philippine peso/U.S. dollar 10.1 2.7 Chinese yuan/U.S. dollar 1.0 2.2 Danish krone/U.S. dollar 0.7 — Total 152.1 150.7 The change in the fair value of the outstanding contracts was a loss of $1.8 million and $0.9 million, respectively, at December 31, 2023 and 2022. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. At December 31, 2023 and 2022, 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: Net Notional Value December 31,2023 December 31, 2022 (in millions) Currency Hedged (Buy/Sell) U.S. dollar/Japanese yen $ 35.5 $ 61.2 U.S. dollar/Taiwan dollar — 10.9 Japanese yen/U.S. dollar — 23.4 Taiwan dollar/U.S. dollar — 5.5 Total $ 35.5 $ 101.0 The change in the fair value of the outstanding cash flow hedge contracts was a gain of $0.6 million at December 31, 2023 and a loss of $3.2 million at December 31, 2022.Unrealized gains and losses on foreign currency cash flow hedge contracts are included in accumulated other comprehensive income (loss). At maturity, the gains or losses associated with cash flow hedge contracts are recorded to revenue. On November 7, 2023, in connection with our agreement to acquire 10% investment in Technoprobe S.p.A we purchased a call option to buy 481.0 million Euros. The expiration date of the option is April 26, 2024. At December 31, 2023, the fair value of the outstanding contract was $17.4 million and an unrealized gain of $7.5 million was recorded in other (income) expense, net.60 Table of Contents The following table summarizes the fair value of derivative instruments as of December 31, 2023 and 2022: Balance Sheet Location December 31,2023 December 31,2022 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 733 $ 86 Foreign exchange option contracts Other current assets 17,364 — Foreign exchange forward contracts Other current liabilities (2,545 ) (990 ) Derivatives designated as hedging instruments: Foreign exchange forward contracts Other current assets 648 — Foreign exchange option contracts Other current liabilities — (3,225 ) Total derivatives $ 16,200 $ (4,129 ) The following table summarizes the effect of derivative instruments in the statements of operations recognized for the years ended December 31, 2023, 2022, and 2021: Location of (Gains) Losses Recognized in Statementof Operations December 31,2023 December 31,2022 December 31,2021 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) Other (income) expense, net $ (1,843 ) $ (2,482 ) $ 6,488 Foreign exchange option contracts Other (income) expense, net (7,464 ) — — Derivatives designated as hedging instruments: Foreign exchange forward and option contracts Revenue (3,127 ) (251 ) — Total derivatives $ (12,434 ) $ (2,733 ) $ 6,488 (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 years ended December 31, 2023, 2022 and 2021, net losses (gains) from remeasurement of monetary assets and liabilities denominated in foreign currencies were $10.9 million, $10.8 million, and $(2.1) million, respectively. See Note J: “Debt” regarding derivatives related to the convertible senior notes. Concentration of Credit Risk Financial instruments which potentially subject Teradyne to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Teradyne’s cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Teradyne’s fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. Teradyne places foreign currency forward contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically dispersed customers. Teradyne performs ongoing credit evaluations of its customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. As of December 31, 2023, one customer of our Semiconductor Test segment, Texas Instruments Inc., accounted for 18% of our accounts receivable balance. There were no customers who accounted for more than 10% of our accounts receivable balance as of December 31, 2022. December 31, 2023 Quoted Pricesin ActiveMarkets forIdenticalInstruments(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Total (in thousands) Assets Cash $ 298,156 $ — $ — $ 298,156 Cash equivalents 453,298 6,117 — 459,415 Available for sale securities: Corporate debt securities — 52,734 — 52,734 U.S. Treasury securities — 41,808 — 41,808 Commercial paper — 1,667 — 1,667 Debt mutual funds 8,773 — — 8,773 U.S. government agency securities — 4,892 — 4,892 Certificates of deposit and time deposits — 21,772 — 21,772 Non-U.S. government securities — 810 — 810 Equity securities: Mutual funds 47,132 — — 47,132 Total $ 807,359 $ 129,800 $ — $ 937,159 Derivative assets — 18,746 — 18,746 Total $ 807,359 $ 148,546 $ — $ 955,905 Liabilities Derivative liabilities — 2,545 — 2,545 Total $ — $ 2,545 $ — $ 2,545 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 751,454 $ 6,117 $ — $ 757,571 Marketable securities — 62,154 — 62,154 Long-term marketable securities 55,905 61,529 — 117,434 Other current assets — 18,746 — 18,746 Total $ 807,359 $ 148,546 $ — $ 955,905 Liabilities Other current liabilities $ — $ 2,545 $ — $ 2,545 Total $ — $ 2,545 $ — $ 2,545 56 Table of Contents",
      "prior_body": "Marketable Securities Teradyne’s equity and debt mutual funds are classified as Level 1 and available-for-sale debt securities are classified as Level 2. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. Teradyne’s equity and debt mutual funds are classified as Level 1 and available-for-sale debt securities are classified as Level 2. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. During the years ended December 31, 2022 and 2021, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. During the years ended December 31, 2022 and 2021, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in 2022, 2021, and 2020 were $0.8 million, $3.1 million, and $4.6 million, respectively. Realized losses recorded in 2022 and 2020 were $1.0 million and $0.3 million, respectively. No realized losses were recorded in 2021. Realized gains and losses are included in other (income) expense, net. Realized gains recorded in 2022, 2021, and 2020 were $0.8 million, $3.1 million, and $4.6 million, respectively. Realized losses recorded in 2022 and 2020 were $1.0 million and $0.3 million, respectively. No realized losses were recorded in 2021. Realized gains and losses are included in other (income) expense, net. Unrealized gains on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were $1.9 million, $5.1 million and $9.6 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were $11.6 million, $1.8 million and $6.0 million, respectively. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale debt securities are included in accumulated other comprehensive income (loss) on the balance sheet. Unrealized gains on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 we Unrealized gains on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 we re $1.9 million, $5.1 , million and $9.6 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were million and $9.6 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2022, 2021 and 2020 were $11.6 million, $1.8 , million and $6.0 million, respectively. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale debt securities are included in accumulated other comprehensive income (loss) on the balance sheet. million and $6.0 million, respectively. Unrealized gains and losses on equity securities are included in other (income) expense, net. Unrealized gains and losses on available-for-sale debt securities are included in accumulated other comprehensive income (loss) on the balance sheet. 64 64 4 Table of Contents The cost of securities sold is based on average cost. The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2022 and 2021: December 31, 2022 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 $ 632,417 $ — $ — $ 632,417 Cash equivalents 161,767 60,589 — 222,356 Available for sale securities: Corporate debt securities — 50,856 — 50,856 U.S. Treasury securities — 39,649 — 39,649 Commercial paper — 7,159 — 7,159 Debt mutual funds 6,580 — — 6,580 U.S. government agency securities — 6,352 — 6,352 Certificates of deposit and time deposits — 1,740 — 1,740 Non-U.S. government securities — 535 — 535 Equity securities: Mutual funds 37,518 — — 37,518 Total $ 838,282 $ 166,880 $ — $ 1,005,162 Derivative assets — 86 — 86 Total $ 838,282 $ 166,966 $ — $ 1,005,248 Liabilities Derivative liabilities — 4,215 — 4,215 Total $ — $ 4,215 $ — $ 4,215 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 794,184 $ 60,589 $ — $ 854,773 Marketable securities — 39,612 — 39,612 Long-term marketable securities 44,098 66,679 — 110,777 Prepayments — 86 — 86 Total $ 838,282 $ 166,966 $ — $ 1,005,248 Liabilities Other current liabilities $ — $ 4,215 $ — $ 4,215 Total $ — $ 4,215 $ — $ 4,215 65 The cost of securities sold is based on average cost. The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2022 and 2021: December 31, 2022 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 $ 632,417 $ — $ — $ 632,417 Cash equivalents 161,767 60,589 — 222,356 Available for sale securities: Corporate debt securities — 50,856 — 50,856 U.S. Treasury securities — 39,649 — 39,649 Commercial paper — 7,159 — 7,159 Debt mutual funds 6,580 — — 6,580 U.S. government agency securities — 6,352 — 6,352 Certificates of deposit and time deposits — 1,740 — 1,740 Non-U.S. government securities — 535 — 535 Equity securities: Mutual funds 37,518 — — 37,518 Total $ 838,282 $ 166,880 $ — $ 1,005,162 Derivative assets — 86 — 86 Total $ 838,282 $ 166,966 $ — $ 1,005,248 Liabilities Derivative liabilities — 4,215 — 4,215 Total $ — $ 4,215 $ — $ 4,215 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 794,184 $ 60,589 $ — $ 854,773 Marketable securities — 39,612 — 39,612 Long-term marketable securities 44,098 66,679 — 110,777 Prepayments — 86 — 86 Total $ 838,282 $ 166,966 $ — $ 1,005,248 Liabilities Other current liabilities $ — $ 4,215 $ — $ 4,215 Total $ — $ 4,215 $ — $ 4,215 65 The cost of securities sold is based on average cost. The cost of securities sold is based on average cost. The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2022 and 2021: The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2022 and 2021: December 31, 2022"
    },
    {
      "status": "MODIFIED",
      "current_title": "Our operations, and the operations of our customers and suppliers, are subject to risks of natural catastrophic events, severe weather, widespread health epidemics, acts of war, terrorist attacks and the threat of domestic and international terrorist attacks, any one of which could result in cancellation of orders, delays in deliveries or other business activities, or loss of customers and could negatively affect our business and results of operations.",
      "prior_title": "Our operations, and the operations of our customers and suppliers, are subject to risks of natural catastrophic events, severe weather, widespread health epidemics, acts of war, terrorist attacks and the threat of domestic and international terrorist attacks, any one of which could result in cancellation of orders, delays in deliveries or other business activities, or loss of customers and could negatively affect our business and results of operations.",
      "similarity_score": 0.576,
      "confidence": "low",
      "key_changes": [
        "Removed sentence: \"We have offered support services to many of our employees impacted by the typhoon and have incurred additional costs to maintain our operations following the disaster.\"",
        "Removed sentence: \"21 Table of Contents The global supply shortage of electrical components and inflationary cost increases has impacted our ability to meet customer demand and could adversely affect our business and financial results.\"",
        "Removed sentence: \"The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in 2022.\"",
        "Removed sentence: \"As a result, we have experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain products and delays in the delivery of some orders placed by our customers.\"",
        "Removed sentence: \"In addition, in 2022, inflationary pressures contributed to increased costs for product components and wage inflation, which had minimal impact on our cost of products, gross margin and profit for the year.\""
      ],
      "current_body": "Our business is international in nature, with our sales, service and administrative personnel and our customers and suppliers located in numerous countries throughout the world. Our operations, and those of our customers and suppliers, are subject to disruption for a variety of reasons, including work stoppages, acts of war, terrorism, health epidemics, fires, earthquakes, hurricanes, typhoons, volcanic eruptions, energy shortages, telecommunication failures, tsunamis, flooding or other natural disasters. Such disruption could materially increase our costs and expenses as well as cause delays in, among other things, shipments of products to our customers, our ability to perform services requested by our customers, or the installation and acceptance of our products at customer sites. Any of these conditions could have a material adverse effect on our business, financial condition or results of operations. Global climate change can result in natural disasters occurring more frequently, with greater intensity and with less predictability. For example, in December 2021, our operations in Cebu, Philippines experienced a devastating typhoon. Our employees in Cebu succeeded in restoring most of our operations within days despite the severity of the damage in the region. The long-term effects of climate change on the global economy and the semiconductor industry in particular are unclear but could be severe.",
      "prior_body": "Our business is international in nature, with our sales, service and administrative personnel and our customers and suppliers located in numerous countries throughout the world. Our operations, and those of our customers and suppliers, are subject to disruption for a variety of reasons, including work stoppages, acts of war, terrorism, health epidemics, fires, earthquakes, hurricanes, typhoons, volcanic eruptions, energy shortages, telecommunication failures, tsunamis, flooding or other natural disasters. Such disruption could materially increase our costs and expenses as well as cause delays in, among other things, shipments of products to our customers, our ability to perform services requested by our customers, or the installation and acceptance of our products at customer sites. Any of these conditions could have a material adverse effect on our business, financial condition or results of operations. Global climate change can result in natural disasters occurring more frequently, with greater intensity and with less predictability. For example, in December 2021, our operations in Cebu, Philippines experienced a devastating typhoon. Our employees in Cebu succeeded in restoring most of our operations within days despite the severity of the damage in the region. We have offered support services to many of our employees impacted by the typhoon and have incurred additional costs to maintain our operations following the disaster. The long-term effects of climate change on the global economy and the semiconductor industry in particular are unclear but could be severe. 21 Table of Contents The global supply shortage of electrical components and inflationary cost increases has impacted our ability to meet customer demand and could adversely affect our business and financial results. The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in 2022. As a result, we have experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain products and delays in the delivery of some orders placed by our customers. In addition, in 2022, inflationary pressures contributed to increased costs for product components and wage inflation, which had minimal impact on our cost of products, gross margin and profit for the year. Our supply chain team, and our suppliers, continue to manage numerous supply, production and logistics obstacles. In an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. However, if we are unable to secure manufacturing capacities from our current or new suppliers and contract manufacturers, on acceptable terms or at all, or successfully manage our purchase commitments and inventory for components, our ability to deliver our products to our customers in the desired quantities, at competitive prices or in a timely manner may be negatively impacted for 2023. Also, our suppliers and contract manufacturers have increased their prices, which increased our cost of products. We have been and may continue to be, affected by wage inflation. We also have been, and may continue to attempt to, offset the effect of these inflationary pressures by increasing the prices of our products. However, we may not be fully able to pass additional costs on to our customers, which could have a negative impact on our results of operations and financial condition. In 2022, we were unable to supply approximately $20 million of revenue in our test businesses for which we had customer demand. Risks Related to Intellectual Property (“IP”) and Cybersecurity Third parties may claim we are infringing their intellectual property and we could suffer significant litigation costs, licensing expenses or be prevented from selling our products. We have been sued for patent infringement and receive notifications from time to time that we may be in violation of patents held by others. An assertion of patent infringement against us, if successful, could have a material adverse effect on our ability to sell our products or it could force us to seek a license to the intellectual property rights of others or alter such products so that they no longer infringe the intellectual property rights of others. A license could be very expensive to obtain or may not be available at all. Similarly, changing our products or processes to avoid infringing the rights of others may be costly or impractical. Additionally, patent litigation could require a significant use of management resources and involve a lengthy and expensive defense, even if we eventually prevail. If we do not prevail, we might be forced to pay significant damages, obtain licenses, modify our products, or stop making our products; each of which could have a material adverse effect on our financial condition, operating results or cash flows. If we are unable to protect our IP, we may lose a valuable asset or may incur costly litigation to protect our rights. We protect the technology that is incorporated in our products in several ways, including through patent, copyright, trademark and trade secret protection and by contractual agreement. However, even with these protections, our IP may still be challenged, invalidated or subject to other infringement actions. While we believe that our IP has value in the aggregate, no single element of our IP is in itself essential. If a significant portion of our IP is invalidated or ineffective, our business could be materially adversely affected. A breach of our operational or security systems could negatively affect our business and results of operations. We rely on various information technology networks and systems to process, transmit and store electronic information, including proprietary and confidential data, and to carry out and support a variety of business 22 The global supply shortage of electrical components and inflationary cost increases has impacted our ability to meet customer demand and could adversely affect our business and financial results. The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in 2022. As a result, we have experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain products and delays in the delivery of some orders placed by our customers. In addition, in 2022, inflationary pressures contributed to increased costs for product components and wage inflation, which had minimal impact on our cost of products, gross margin and profit for the year. Our supply chain team, and our suppliers, continue to manage numerous supply, production and logistics obstacles. In an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. However, if we are unable to secure manufacturing capacities from our current or new suppliers and contract manufacturers, on acceptable terms or at all, or successfully manage our purchase commitments and inventory for components, our ability to deliver our products to our customers in the desired quantities, at competitive prices or in a timely manner may be negatively impacted for 2023. Also, our suppliers and contract manufacturers have increased their prices, which increased our cost of products. We have been and may continue to be, affected by wage inflation. We also have been, and may continue to attempt to, offset the effect of these inflationary pressures by increasing the prices of our products. However, we may not be fully able to pass additional costs on to our customers, which could have a negative impact on our results of operations and financial condition. In 2022, we were unable to supply approximately $20 million of revenue in our test businesses for which we had customer demand. Risks Related to Intellectual Property (“IP”) and Cybersecurity Third parties may claim we are infringing their intellectual property and we could suffer significant litigation costs, licensing expenses or be prevented from selling our products. We have been sued for patent infringement and receive notifications from time to time that we may be in violation of patents held by others. An assertion of patent infringement against us, if successful, could have a material adverse effect on our ability to sell our products or it could force us to seek a license to the intellectual property rights of others or alter such products so that they no longer infringe the intellectual property rights of others. A license could be very expensive to obtain or may not be available at all. Similarly, changing our products or processes to avoid infringing the rights of others may be costly or impractical. Additionally, patent litigation could require a significant use of management resources and involve a lengthy and expensive defense, even if we eventually prevail. If we do not prevail, we might be forced to pay significant damages, obtain licenses, modify our products, or stop making our products; each of which could have a material adverse effect on our financial condition, operating results or cash flows. If we are unable to protect our IP, we may lose a valuable asset or may incur costly litigation to protect our rights. We protect the technology that is incorporated in our products in several ways, including through patent, copyright, trademark and trade secret protection and by contractual agreement. However, even with these protections, our IP may still be challenged, invalidated or subject to other infringement actions. While we believe that our IP has value in the aggregate, no single element of our IP is in itself essential. If a significant portion of our IP is invalidated or ineffective, our business could be materially adversely affected. A breach of our operational or security systems could negatively affect our business and results of operations. We rely on various information technology networks and systems to process, transmit and store electronic information, including proprietary and confidential data, and to carry out and support a variety of business 22"
    },
    {
      "status": "MODIFIED",
      "current_title": "ACCOUNTING POLICIES",
      "prior_title": "(in thousands)",
      "similarity_score": 0.57,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"The consolidated financial statements include the accounts of Teradyne and its wholly owned subsidiaries.\"",
        "Removed sentence: \"Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and our markets.\"",
        "Removed sentence: \"NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A.\"",
        "Removed sentence: \"THE COMPANY Teradyne, Inc.\"",
        "Removed sentence: \"(“Teradyne”) is a leading global supplier of automated test equipment and robotics solutions.\""
      ],
      "current_body": "The consolidated financial statements include the accounts of Teradyne and its wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated. Certain prior years’ amounts were reclassified to conform to the current year presentation. Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, accounts receivable, income taxes, deferred tax assets and liabilities, pensions, warranties, contingent consideration liabilities, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results may differ significantly from these estimates under different assumptions or conditions.",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Retirement Plans",
      "prior_title": "United States",
      "similarity_score": 0.567,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"ASC 715-20, “Compensation—Retirement Benefits—Defined Benefit Plans,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715-20.\"",
        "Reworded sentence: \"Plan”), certain qualified plans for non-U.S.\"",
        "Reworded sentence: \"The discount rate that we utilized for determining future pension obligations for the U.S.\""
      ],
      "current_body": "ASC 715-20, “Compensation—Retirement Benefits—Defined Benefit Plans,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715-20. The pension asset or liability represents the difference between the fair value of the pension plans’ assets and the projected benefit obligation as of December 31. For other postretirement benefit plans, the liability is the difference between the fair value of the plan’s assets and the accumulated postretirement benefit obligation as of December 31. For the year ended December 31, 2023, our pension expense, which includes the U.S. Qualified Pension Plan (“U.S. Plan”), certain qualified plans for non-U.S. subsidiaries, and a U.S. Supplemental Executive Defined Benefit Plan, was approximately $6.8 million. Pension expense is calculated based upon a number of actuarial assumptions. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Plan assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 4.75% was an appropriate rate of return on assets to use for 2023. The December 31, 2023 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. We recognize net actuarial gains and losses and the change in the fair value of plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. We calculate the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.75% at December 31, 2023, down from 4.95% at December 31, 2022. We estimate that in 2024, we will recognize approximately $0.2 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2024 is based on a 4.75% discount rate and a 4.65% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. As of December 31, 2023, our pension plans had no unrecognized pension prior service cost. The assets of the U.S. Plan consist substantially of fixed income securities. U.S. Plan assets have increased from $111.8 million at December 31, 2022 to $112.6 million at December 31, 2023, while the U.S. Plan’s liability increased from $100.0 million at December 31, 2022 to $101.1 million at December 31, 2023. Our funding policy is to make contributions to our pension plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2023, we made contributions of $3.1 million to the U.S. supplemental executive defined benefit pension plan, and $1.0 million to certain qualified plans for non-U.S. subsidiaries. In 2024, we expect to contribute approximately $3.1 million to the U.S. supplemental executive defined benefit pension plan. Contributions to be made in 2024 to certain qualified plans for non-U.S. subsidiaries are based on local statutory requirements and are estimated at approximately $1.4 million. 34 34 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Foreign Foreign Discount rate Discount rate Expected return on plan assets Expected return on plan assets Salary progression rate Salary progression rate Weighted Average Assumptions to Determine Pension Obligations at December 31:"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in millions)",
      "prior_title": "(in millions)",
      "similarity_score": 0.56,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Currency Hedged (Buy/Sell) U.S.\"",
        "Reworded sentence: \"At maturity, the gains or losses associated with cash flow hedge contracts are recorded to revenue.\""
      ],
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022",
      "prior_body": "Japanese Yen Japanese Yen Taiwan Dollar Taiwan Dollar Korean Won Korean Won British Pound Sterling British Pound Sterling Euro Euro Singapore Dollar Singapore Dollar Philippine Peso Philippine Peso Chinese Yuan Chinese Yuan Total Total The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. The fair value of the outstanding contracts was a loss of $0.9 million and $0.1 million, respectively, at December 31, 2022 and 2021. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. At December 31, 2022 and 2021, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S. currencies for U.S. dollars with the following notional amounts: At December 31, 2022 and 2021, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S. currencies for U.S. dollars with the following notional amounts: December 31, 2022"
    },
    {
      "status": "MODIFIED",
      "current_title": "Year Ended December 31, 2021",
      "prior_title": "Year Ended December 31, 2021",
      "similarity_score": 0.554,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"$ 1,512 162,251 $ 20,281 $ 1,811,545 $ (5,948 ) $ 736,566 $ 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative-effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 )\""
      ],
      "current_body": "$ 1,512 162,251 $ 20,281 $ 1,811,545 $ (5,948 ) $ 736,566 $ 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative-effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 )",
      "prior_body": "Year Ended December 31, 2021 Net issuance of common stock under stock-based plans Net issuance of common stock under stock-based plans Stock-based compensation expense Stock-based compensation expense Repurchase of common stock Repurchase of common stock Cash dividends ($0.44 per share) Cash dividends ($0.44 per share) Settlements of convertible notes Settlements of convertible notes Exercise of convertible notes hedge call options Exercise of convertible notes hedge call options Convertible common shares Convertible common shares Cumulative effect of change in accounting principle related to convertible debt Cumulative effect of change in accounting principle related to convertible debt Net income Net income Other comprehensive loss Other comprehensive loss Year Ended December 31, 2022"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.552,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Assets Cash and cash equivalents $ 757,571 $ 757,571 $ 854,773 $ 854,773 Marketable securities 179,588 179,588 150,389 150,389 Derivative assets Derivative Derivative Derivative assets assets assets 18,746 18,746 86 86 Liabilities Derivative liabilities Derivative Derivative Derivative liabilities liabilities liabilities 2,545 2,545 4,215 4,215 Convertible debt (1) — — 50,115 139,007 (1)The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features.\"",
        "Reworded sentence: \"57 57 Table of Contents Table of Contents Table of Contents The following tables summarize the composition of available-for-sale marketable securities at December 31, 2023 and 2022: December 31, 2023 Available-for-Sale Cost UnrealizedGain Unrealized(Loss) Fair MarketValue Fair MarketValue of Investmentswith Unrealized Losses (in thousands) Corporate debt securities $ 56,458 $ 201 $ (3,925 ) $ 52,734 $ 44,263 U.S.\"",
        "Reworded sentence: \"government securities 535 — — 535 — $ 123,839 $ 73 $ (11,041 ) $ 112,871 $ 99,763 Reported as follows: Cost UnrealizedGain Unrealized(Loss) Fair MarketValue Fair MarketValue of Investmentswith Unrealized Losses (in thousands) Marketable securities $ 39,950 $ 70 $ (408 ) $ 39,612 $ 30,713 Long-term marketable securities 83,889 3 (10,633 ) $ 73,259 69,050 $ 123,839 $ 73 $ (11,041 ) $ 112,871 $ 99,763 The following tables summarize the composition of available-for-sale marketable securities at December 31, 2023 and 2022:\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Prepayments",
      "prior_title": "Prepayments",
      "similarity_score": 0.549,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Prepayments consist of the following: 2023 (1) 2022 (in thousands) Contract manufacturer and supplier prepayments $ 502,257 $ 491,105 Prepaid maintenance and other services 17,592 14,545 Prepaid taxes 16,083 18,625 Other prepayments 13,038 8,687 Total prepayments $ 548,970 $ 532,962 (1)Excludes $5.3 million of contract manufacturer and supplier prepayments, classified as assets held for sale.\""
      ],
      "current_body": "Prepayments consist of the following: 2023 (1) 2022 (in thousands) Contract manufacturer and supplier prepayments $ 502,257 $ 491,105 Prepaid maintenance and other services 17,592 14,545 Prepaid taxes 16,083 18,625 Other prepayments 13,038 8,687 Total prepayments $ 548,970 $ 532,962 (1)Excludes $5.3 million of contract manufacturer and supplier prepayments, classified as assets held for sale. See Note E: “Assets held for sale” for additional information. Prepayments consist of the following: 2023 (1) 2022",
      "prior_body": "Prepayments Prepayments consist of the following: Prepayments consist of the following: 2022 2022 2021 2021 (in thousands)"
    },
    {
      "status": "MODIFIED",
      "current_title": "INVENTORIES",
      "prior_title": "INVENTORIES",
      "similarity_score": 0.537,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Inventories, net consisted of the following at December 31, 2023 and 2022: 2023 (1) 2022 (in thousands) Raw material $ 258,422 $ 256,065 Work-in-process 26,851 37,982 Finished goods 24,701 30,972 $ 309,974 $ 325,019 (1)Excludes $18.0 million of primarily work-in-process inventories, net classified as assets held for sale.\""
      ],
      "current_body": "Inventories, net consisted of the following at December 31, 2023 and 2022: 2023 (1) 2022 (in thousands) Raw material $ 258,422 $ 256,065 Work-in-process 26,851 37,982 Finished goods 24,701 30,972 $ 309,974 $ 325,019 (1)Excludes $18.0 million of primarily work-in-process inventories, net classified as assets held for sale. See Note E: “Assets held for sale” for additional information. Inventories, net consisted of the following at December 31, 2023 and 2022: 2023 (1) 2022",
      "prior_body": "INVENTORIES Inventories, net consisted of the following at December 31, 2022 and 2021: Inventories, net consisted of the following at December 31, 2022 and 2021: 2022 2022 2021 2021 (in thousands)"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in millions)",
      "prior_title": "Interest and Other",
      "similarity_score": 0.53,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Interest income $ (27.3 ) $ (6.4 ) $ (20.9 ) Interest expense 3.8 3.7 0.1 Other (income) expense, net (1.0 ) (5.8 ) 4.8 Interest income increased by $20.9 million due to higher interest rates in 2023.\""
      ],
      "current_body": "Semiconductor Test $ 1,818.6 $ 2,080.6 $ (262.0 ) Robotics 375.2 403.1 (27.9 ) System Test 338.2 469.3 (131.1 ) Wireless Test 144.3 201.7 (57.4 ) Corporate and Eliminations — 0.3 (0.3 ) $ 2,676.3 $ 3,155.0 $ (478.7 ) The decrease in Semiconductor Test revenues of $262.0 million, or 12.6%, was driven primarily by lower tester sales for compute and mobility applications. The decrease in Robotics revenues of $27.9 million, or 6.9%, was driven primarily by softening demand due to slowing global industrial activity and macro-economic headwinds and the impact of the transformation of Universal Robots' sales channel. The decrease in System Test revenues of $131.1 million, or 27.9%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers. The decrease in Wireless Test revenues of $57.4 million, or 28.5%, was primarily due to a decrease in sales of connectivity test products. Our reportable segments accounted for the following percentages of consolidated revenues: 2023 2022 Semiconductor Test 68 % 66 % Robotics 14 13 System Test 13 15 Wireless Test 5 6 100 % 100 % Revenues by country as a percentage of total revenues were as follows (1): 2023 2022 United States 16 % 15 % Korea 15 17 Taiwan 14 20 China 12 16 Japan 11 5 Europe 10 9 Philippines 7 4 Singapore 4 3 Thailand 3 4 Malaysia 3 5 Rest of the World 5 2 100 % 100 % (1)Revenues attributable to a country are based on the location of the customer site. Revenues attributable to a country are based on the location of the customer site. The breakout of product and service revenues was as follows: 2023 2022",
      "prior_body": "2021-2022 Interest income Interest expense Other (income) expense, net Interest income increased $3.8 million due to higher interest rates. Interest expense decreased $14.1 million primarily due to the January 1, 2022 adoption of ASU 2020-06 which eliminated the amortization of the debt discount which was $10.3 million in 2021. Other (income) expense, net decreased by $30.4 million primarily due to $28.8 million losses on convertible debt conversions recognized in 2021 and an increase in pension actuarial gains, from $2.2 million gain in 2021 to $25.6 million gain in 2022, partially offset by changes in gains/losses on equity securities, from a $7.2 million gain in 2021 to a $9.0 million loss in 2022, and a $4 million increase in foreign exchange losses."
    },
    {
      "status": "MODIFIED",
      "current_title": "THE COMPANY",
      "prior_title": "Retirement and Postretirement Plans",
      "similarity_score": 0.522,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"(“Teradyne”) is a leading global supplier of automated test equipment and robotics solutions.\"",
        "Reworded sentence: \"In accordance with ASU 2020-06, Teradyne accounts for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives.\"",
        "Added sentence: \"Leases Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset.\"",
        "Added sentence: \"Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations.\"",
        "Added sentence: \"The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne.\""
      ],
      "current_body": "Teradyne, Inc. (“Teradyne”) is a leading global supplier of automated test equipment and robotics solutions. Teradyne designs, develops, manufactures and sells automated test systems and robotics products. Teradyne’s automated test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s robotics products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automated test equipment and robotics products and services include: •semiconductor test (“Semiconductor Test”) systems; semiconductor test (“Semiconductor Test”) systems; •storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); •wireless test (“Wireless Test”) systems; and wireless test (“Wireless Test”) systems; and •robotics (“Robotics”) products. robotics (“Robotics”) products. robotics (“Robotics”) products. B.ACCOUNTING POLICIES The consolidated financial statements include the accounts of Teradyne and its wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated. Certain prior years’ amounts were reclassified to conform to the current year presentation. Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, accounts receivable, income taxes, deferred tax assets and liabilities, pensions, warranties, contingent consideration liabilities, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results may differ significantly from these estimates under different assumptions or conditions. Revenue Recognition Revenue from Contracts with Customers In accordance with ASC 606, Teradyne recognizes revenues, when or as control is transferred to a customer. Teradyne’s determination of revenue is dependent upon a five-step process outlined below. •Teradyne accounts for a contract with a customer when there is written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. •Teradyne periodically enters into contracts with customers in which a customer may purchase a combination of goods and services, such as products with extended warranty obligations. Teradyne determines performance obligations by assessing whether the products or services are distinct from the other elements of the contract. In order to be distinct, the product or service must perform either on its own or with readily available resources and must be separate within the context of the contract. 45 Table of Contents •Teradyne determines the transaction price to be the amount of consideration to which Teradyne expects to be entitled to, which is generally at contractually stated prices.•Transaction price is allocated to each individual performance obligation based on the standalone selling price of that performance obligation. Teradyne uses standalone transactions when available to value each performance obligation. If standalone transactions are not available, Teradyne will estimate the standalone selling price through market assessments or cost plus a reasonable margin analysis. Any discounts from standalone selling price are spread proportionally to each performance obligation. •In order to determine the appropriate timing for revenue recognition, Teradyne first determines if the transaction meets any of three criteria for over time recognition. If the transaction meets the criteria for over time recognition, Teradyne recognizes revenue as the good or service is delivered. Teradyne uses input variables such as hours or months utilized or costs incurred to determine the amount of revenue to recognize in a given period. Input variables are used as they best align consumption with benefit to the customer. For transactions that do not meet the criteria for over time recognition, Teradyne will recognize revenue at a point in time based on an assessment of the five criteria for transfer of control. Teradyne has concluded that revenue should be recognized when shipped or delivered based on contractual terms. Typically, acceptance of Teradyne’s products and services is a formality as Teradyne delivers similar systems, instruments and robots to standard specifications. In cases where acceptance is not deemed a formality, Teradyne will defer revenue recognition until customer acceptance. Performance Obligations Products Teradyne products consist primarily of semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage test systems and instruments, circuit-board test and inspection systems and instruments, wireless test systems and robotics products. Teradyne’s hardware is typically recognized at a point in time upon transfer of control to the customer. Services Teradyne services consist of extended warranties, training and application support, service agreements, post contract customer support (“PCS”) and replacement parts. Each service is recognized based on relative standalone selling price. Extended warranty, training and support, service agreements and PCS are recognized over time based on the period of service. Replacement parts are recognized at a point in time upon transfer of control to the customer. Teradyne does not allow customer returns or provide refunds to customers for any products or services. Teradyne products include a standard 12-month warranty. This warranty is not considered a distinct performance obligation because it does not obligate Teradyne to provide a separate service to the customer and it cannot be purchased separately. Cost related to warranties are included in cost of revenues when product revenues are recognized. As of December 31, 2023 and 2022, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2023 2022 (in thousands) Maintenance, service and training $ 66,458 $ 78,089 Customer advances, undelivered elements and other 35,731 59,147 Extended warranty 34,897 56,180 Total deferred revenue and customer advances $ 137,086 $ 193,416 46 Table of Contents Product Warranty Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities: Amount (in thousands) Balance at December 31, 2020 $ 16,633 Accruals for warranties issued during the period 35,727 Accruals related to pre-existing warranties (6,846 ) Settlements made during the period (20,937 ) Balance at December 31, 2021 24,577 Accruals for warranties issued during the period 21,851 Accruals related to pre-existing warranties (5,618 ) Settlements made during the period (26,629 ) Balance at December 31, 2022 14,181 Accruals for warranties issued during the period 21,644 Accruals related to pre-existing warranties (1,576 ) Settlements made during the period (18,551 ) Balance at December 31, 2023 $ 15,698 When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2020 $ 51,929 Deferral of new extended warranty revenue 43,597 Recognition of extended warranty deferred revenue (31,358 ) Balance at December 31, 2021 64,168 Deferral of new extended warranty revenue 33,686 Recognition of extended warranty deferred revenue (41,674 ) Balance at December 31, 2022 56,180 Deferral of new extended warranty revenue 14,330 Recognition of extended warranty deferred revenue (35,613 ) Balance at December 31, 2023 $ 34,897 Accounts Receivable and Allowance for Credit LossesTrade accounts receivable are recorded at the invoiced amount and do not bear interest. Teradyne maintains allowances for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for credit losses are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s creditworthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $243.5 million and $93.9 million during 2023 and 2022, respectively. Factoring fees for the sales of receivables are recorded in interest expense and are not material. 47 Table of Contents Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. On a quarterly basis, Teradyne uses consistent methodologies to evaluate all inventories for net realizable value. Teradyne records a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process. The inventory valuation is based upon assumptions about future demand, product mix and possible alternative uses. Investments Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “Investments—Debt and Equity Securities.” ASC 320-10 requires that certain debt and equity securities be classified into one of three categories; trading, available-for-sale or held-to-maturity securities. On a quarterly basis, Teradyne reviews its investments to identify and evaluate those that have an indication of a potential other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include: •The length of time and the extent to which the market value has been less than cost; •The financial condition and near-term prospects of the issuer; and •The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the twelve months ended December 31, 2023 and 2022. Teradyne measures its debt and equity investments at fair value, in accordance with ASC 820-10, “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Financial Assets and Financial Liabilities Teradyne records changes in fair value of equity securities directly in earnings and unrealized gains and losses in other (income) expense, net, in accordance with ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” 48 Table of Contents Prepayments Prepayments consist of the following: 2023 (1) 2022 (in thousands) Contract manufacturer and supplier prepayments $ 502,257 $ 491,105 Prepaid maintenance and other services 17,592 14,545 Prepaid taxes 16,083 18,625 Other prepayments 13,038 8,687 Total prepayments $ 548,970 $ 532,962 (1)Excludes $5.3 million of contract manufacturer and supplier prepayments, classified as assets held for sale. See Note E: “Assets held for sale” for additional information.Retirement and Postretirement Plans Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. Teradyne reports net periodic pension cost and net periodic postretirement benefit costs in accordance with ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The service cost component of net benefit costs is reported in the same line item in the consolidated statement of operations as other employee compensation costs. The non-service components of net benefit costs such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses, are reported within other (income) expense, net. Goodwill, Intangible and Long-Lived Assets Teradyne accounts for goodwill and intangible assets in accordance with ASC 350-10, “Intangibles-Goodwill and Other.” Intangible assets are amortized over their estimated useful economic life and are carried at cost less accumulated amortization. Goodwill is assessed for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. In accordance with ASC 350-10, Teradyne has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform a quantitative goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more likely than not that the fair value of the reporting unit is greater than its carrying amounts, a quantitative goodwill impairment test is not required. In accordance with ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flows analysis. The cash flows estimates used to determine the impairment, if any, contain management’s best estimates using appropriate assumptions and projections at that time. Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flows valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. 49 Table of Contents Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts, while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery, equipment and software 3 to 5 years Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. The net book value of internally manufactured test systems sold in the years ended December 31, 2023, 2022, and 2021 was $2.8 million, $6.6 million, and $16.6 million, respectively. Convertible Debt Teradyne adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, Teradyne accounts for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments. Leases Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne. As of December 31, 2023, Teradyne does not have material leases that have not yet commenced. Teradyne determines if the lease is an operating or finance lease at the lease commencement date based upon the terms of the lease and the nature of the asset. The lease term used to calculate the lease liability includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease liability is measured at the present value of future lease payments, discounted using the discount rate for the lease at the commencement date. As Teradyne is typically unable to determine the implicit rate, Teradyne uses an incremental borrowing rate based on the lease term and economic environment at commencement date. Teradyne initially measures payments based on an index by using the applicable rate at lease commencement. Variable payments that do not depend on an index are not included in the lease liability and are recognized as they are incurred. The right-of-use (“ROU”) asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments, and reduced by any lease incentives. 50 Table of Contents Teradyne’s contracts often include non-lease components such as common area maintenance. Teradyne elected the practical expedient to account for the lease and non-lease components as a single lease component. For leases with a term of one year or less, Teradyne has elected not to record the lease asset or liability. The lease payments are recognized in the consolidated statement of earnings on a straight-line basis over the lease term. Teradyne includes lease costs within cost of revenues and operating expenses. See Note I: “Leases.” Engineering and Development Costs Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring engineering charges related to product design, allocated facility costs, depreciation, and tooling costs. Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “Compensation-Stock Compensation.” Teradyne elects to account for forfeitures by applying an estimated forfeiture rate and recognizes compensation costs only for those stock-based compensation awards expected to vest. Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations, all excess tax benefits related to share-based payments are reported as cash flows from operating activities, and all cash payments made to taxing authorities on the employees’ behalf for withheld shares are presented as financing activities on the statement of cash flows. Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Teradyne performed the required assessment of positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes.” This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on its assessment, Teradyne concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized. Advertising Costs Teradyne expenses all advertising costs as incurred. Advertising costs were $15.5 million, $17.3 million and $13.4 million in 2023, 2022 and 2021, respectively. Translation of Non-U.S. Currencies The functional currency for all non-U.S. subsidiaries is the U.S. dollar, except for Universal Robots, MiR and Lemsys for which the local currency is its functional currency. All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For Universal Robots, MiR and Lemsys, assets and liabilities are translated into U.S. dollars using exchange rates in effect at the end of the period. Revenues and expense amounts are translated using an average of exchange rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive income (loss) on the balance sheet. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2023, 2022 and 2021, losses (gains) from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $10.9 million, $10.8 million, and $(2.1) million, respectively. 51 Table of Contents These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. Net Income per Common Share Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne is required to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, Teradyne is accounting for the conversion spread using the treasury stock method. Comprehensive Income Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment.",
      "prior_body": "We recognize net actuarial gains and losses and the change in the fair value of the plan assets in our operating results in the year in which they occur or upon any interim remeasurement of the plans. Discount rate and expected return on assets are two assumptions which are important elements of pension plan expense and asset/liability measurement. We evaluate our discount rate and expected rate of return on assets assumptions annually on a plan and country specific basis. We evaluate other assumptions related to demographic factors, such as retirement age, mortality and turnover periodically, and update them to reflect our experience and expectations for the future. In developing the expected return on U.S. Qualified Pension Plan (“U.S. Plan”) assets assumption, we evaluated input from our investment manager and pension consultants, including their forecast of asset class return expectations. We believe that 2.0% was an appropriate rate of return on assets to use for 2022. The December 31, 2022 asset allocation for our U.S. Plan was 94% invested in fixed income securities, 5% invested in equity securities, and 1% invested in other securities. Our investment manager regularly reviews the actual asset allocation and periodically rebalances the portfolio to ensure alignment with our target allocations. The discount rate that we utilized for determining future pension obligations for the U.S. Plan is based on the FTSE Pension Index adjusted for the U.S. Plan’s expected cash flows and was 4.95% at December 31, 2022, up from 2.65% at December 31, 2021. We estimate that in 2023 we will recognize approximately $0.4 million of pension expense for the U.S. Plan. The U.S. Plan pension expense estimate for 2023 is based on a 4.95% 32 Table of Contents discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. Goodwill, Intangible and Long-Lived Assets We assess goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. We review intangible and long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Impairment of intangible and long-lived assets would result in the asset being written down to its estimated fair value. The calculated fair value of a reporting unit or intangible or long-lived asset is dependent upon discounted cash flow (“DCF”) models, discount rates, and market multiples. DCF models rely on our forecasted mid-term plans which are subjective based on customer or market conditions and can change materially. We utilize third party specialists when determining discount rates and selected market multiples. A change in any of these key assumptions could result in a reporting unit, intangible asset, or long-lived asset being impaired in a future period. Convertible Debt We adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, we account for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments. Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized. Results of Operations Information pertaining to fiscal year 2020 results of operations, including a year-to-year comparison against fiscal year 2021, was included in our Annual Report on Form 10-K for the year ended December 31, 2021 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” which was filed with the SEC on February 23, 2022. This information is incorporated by reference herein. 33 discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans. Goodwill, Intangible and Long-Lived Assets We assess goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. We review intangible and long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Impairment of intangible and long-lived assets would result in the asset being written down to its estimated fair value. The calculated fair value of a reporting unit or intangible or long-lived asset is dependent upon discounted cash flow (“DCF”) models, discount rates, and market multiples. DCF models rely on our forecasted mid-term plans which are subjective based on customer or market conditions and can change materially. We utilize third party specialists when determining discount rates and selected market multiples. A change in any of these key assumptions could result in a reporting unit, intangible asset, or long-lived asset being impaired in a future period. Convertible Debt We adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, we account for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments. Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized. Results of Operations Information pertaining to fiscal year 2020 results of operations, including a year-to-year comparison against fiscal year 2021, was included in our Annual Report on Form 10-K for the year ended December 31, 2021 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” which was filed with the SEC on February 23, 2022. This information is incorporated by reference herein. 33 discount rate and a 4.75% return on assets. Future pension expense or income will depend on future investment performance, changes in future discount rates and various other factors related to the employee population participating in our pension plans."
    },
    {
      "status": "MODIFIED",
      "current_title": "Restructuring and Other",
      "prior_title": "RESTRUCTURING AND OTHER",
      "similarity_score": 0.521,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"During the year ended December 31, 2023, we recorded $14.7 million of severance charges related to headcount reductions of 215 people primarily in Semiconductor Test and Robotics, which included charges related to a voluntary early retirement program for employees meeting certain conditions, $3.1 million of acquisition and divestiture expenses related to the Technoprobe transaction, a $1.5 million contract termination charge, and a charge of $1.1 million for an increase in environmental liability.\""
      ],
      "current_body": "During the year ended December 31, 2023, we recorded $14.7 million of severance charges related to headcount reductions of 215 people primarily in Semiconductor Test and Robotics, which included charges related to a voluntary early retirement program for employees meeting certain conditions, $3.1 million of acquisition and divestiture expenses related to the Technoprobe transaction, a $1.5 million contract termination charge, and a charge of $1.1 million for an increase in environmental liability. During the year ended December 31, 2022, we recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of an asset.",
      "prior_body": "RESTRUCTURING AND OTHER During the year ended December 31, 2022, Teradyne recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of asset. During the year ended December 31, 2022, Teradyne recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million, $2.9 million of severance charges primarily in Robotics, and a charge of $2.7 million for an increase in environmental and legal liabilities, partially offset by a $3.4 million gain on sale of asset. 81 81 1 Table of Contents During the year ended December 31, 2021, Teradyne recorded a charge of $12.0 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, $1.5 million of severance charges primarily in Robotics, $0.5 million of acquisition related compensation and expenses and $2.5 million for other expenses, offset by a $7.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability. During the year ended December 31, 2020, Teradyne recorded a $19.7 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability, and a $3.5 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by a charge of $4.0 million for contract termination settlement, $2.5 million of acquisition related compensation and expenses, $2.3 million of severance charges primarily in Robotics, and $1.2 million of other expenses. P. RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all of its plans. Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (the “IRC”), as well as unfunded qualified foreign plans. In 2022, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $59.1 million across all pension plans from increases in discount rates, and approximately $3.1 million gain from foreign exchange effects for foreign plans. In 2021, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $8.7 million across all pension plans from increases in discount rates, and approximately $3.3 million gain from foreign exchange effects for foreign plans. 82 During the year ended December 31, 2021, Teradyne recorded a charge of $12.0 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, $1.5 million of severance charges primarily in Robotics, $0.5 million of acquisition related compensation and expenses and $2.5 million for other expenses, offset by a $7.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability. During the year ended December 31, 2020, Teradyne recorded a $19.7 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability, and a $3.5 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by a charge of $4.0 million for contract termination settlement, $2.5 million of acquisition related compensation and expenses, $2.3 million of severance charges primarily in Robotics, and $1.2 million of other expenses. P. RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all of its plans. Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (the “IRC”), as well as unfunded qualified foreign plans. In 2022, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $59.1 million across all pension plans from increases in discount rates, and approximately $3.1 million gain from foreign exchange effects for foreign plans. In 2021, Teradyne’s projected benefit obligations decreased primarily due to actuarial gains of approximately $8.7 million across all pension plans from increases in discount rates, and approximately $3.3 million gain from foreign exchange effects for foreign plans. 82 During the year ended December 31, 2021, Teradyne recorded a charge of $12.0 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, $1.5 million of severance charges primarily in Robotics, $0.5 million of acquisition related compensation and expenses and $2.5 million for other expenses, offset by a $7.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability. During the year ended December 31, 2021, Teradyne recorded a charge of $12.0 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, $1.5 million of severance charges primarily in Robotics, $0.5 million of acquisition related compensation and expenses and $2.5 million for other expenses, offset by a $7.2 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability. During the year ended December 31, 2020, Teradyne recorded a $19.7 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability, and a $3.5 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by a charge of $4.0 million for contract termination settlement, $2.5 million of acquisition related compensation and expenses, $2.3 million of severance charges primarily in Robotics, and $1.2 million of other expenses. During the year ended December 31, 2020, Teradyne recorded a $19.7 million gain for the decrease in the fair value of the AutoGuide contingent consideration liability, and a $3.5 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by a charge of $4.0 million for contract termination settlement, $2.5 million of acquisition related compensation and expenses, $2.3 million of severance charges primarily in Robotics, and $1.2 million of other expenses. P. P. RETIREMENT PLANS"
    },
    {
      "status": "MODIFIED",
      "current_title": "Timing of Revenue Recognition",
      "prior_title": "Timing of Revenue Recognition",
      "similarity_score": 0.503,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Point in Time $ 1,989,979 $ 365,441 $ 409,383 $ 305,512 $ 60,884 $ 204,247 $ — $ 3,335,446 Over Time 256,751 30,171 58,356 5,670 3,839 12,648 — 367,435 Total $ 2,246,730 $ 395,612 $ 467,739 $ 311,182 $ 64,723 $ 216,895 $ — $ 3,702,881\""
      ],
      "current_body": "Point in Time $ 1,141,882 $ 356,417 $ 268,379 $ 296,252 $ 66,986 $ 129,399 $ — $ 2,259,315 Over Time 290,739 29,598 69,818 7,540 4,405 14,883 — 416,983 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298",
      "prior_body": "Timing of Revenue Recognition Timing of Revenue Recognition Point in Time Point in Time Over Time Over Time Total Total Total Geographical Market"
    },
    {
      "status": "MODIFIED",
      "current_title": "We are subject to risks of operating internationally.",
      "prior_title": "The market for our products is concentrated, and our business depends, in part, on obtaining orders from a few significant customers.",
      "similarity_score": 0.501,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"A significant portion of our consolidated revenues is derived from customers outside the United States.\""
      ],
      "current_body": "A significant portion of our consolidated revenues is derived from customers outside the United States. Our international sales and operations are subject to significant risks and difficulties, including: •unexpected changes in legal and regulatory requirements affecting international markets; unexpected changes in legal and regulatory requirements affecting international markets; •cost increases due to inflation; cost increases due to inflation; •changes in tariffs and exchange rates; changes in tariffs and exchange rates; •social, political and economic instability, acts of terrorism and international conflicts; social, political and economic instability, acts of terrorism and international conflicts; 11 11 Table of Contents Table of Contents Table of Contents •disruption caused by health pandemics; disruption caused by health pandemics; •difficulties in protecting intellectual property; difficulties in protecting intellectual property; •difficulties in accounts receivable collection; difficulties in accounts receivable collection; •cultural differences in the conduct of business; cultural differences in the conduct of business; •difficulties in staffing and managing international operations; difficulties in staffing and managing international operations; •compliance with anti-corruption laws; compliance with anti-corruption laws; •compliance with data privacy regulations; compliance with data privacy regulations; •compliance with customs and trade regulations; and compliance with customs and trade regulations; and •compliance with international tax laws and regulations. compliance with international tax laws and regulations. In addition, an increasing portion of our products and the products we purchase from our suppliers are sourced or manufactured in foreign locations, including China, Malaysia and Denmark, and a large portion of the devices our products test are fabricated and tested by foundries and subcontractors in Taiwan, China, Korea and other parts of Asia. As a result, we are subject to a number of economic and other risks, particularly during times of political, health or financial instability in these regions. Disruption of manufacturing or supply sources in these international locations could materially adversely impact our ability to fill customer orders and potentially result in lost business.",
      "prior_body": "The market for our products is concentrated with a limited number of significant customers accounting for a substantial portion of the purchases of test equipment. In each of the years, 2022, 2021 and 2020, our five largest direct customers in aggregate accounted for 26%, 33% and 36% of consolidated revenues, respectively. We estimate consolidated revenues driven by Qualcomm, a customer of our Semiconductor Test, System Test, and Wireless Test segments, combining direct and indirect sales to Qualcomm, accounted for approximately 11% of our consolidated revenues in 2022 and less than 10% in 2021 and 2020. We estimate consolidated revenues driven by one OEM customer, of our Semiconductor Test and Wireless Test segments, combining direct sales to that customer with sales to the customer’s OSATs (which include Taiwan Semiconductor Manufacturing Company Ltd.), accounted for less than 10% of our consolidated revenues in 2022, and 19% and 25% of our consolidated revenues in 2021 and 2020, respectively. 14 Table of Contents If we fail to develop new technologies to adapt to our customers’ needs and if our customers fail to accept our new products, our revenues will be adversely affected. We believe that our technological position depends primarily on the technical competence and creative ability of our engineers. In a rapidly evolving market, such as ours, the development or acquisition of new technologies, commercialization of those technologies into products and market acceptance and customer demand for those products are critical to our success. Successful product development or acquisition, introduction and acceptance depend upon a number of factors, including: • new product selection; • ability to meet customer requirements including with respect to safety and cyber security; • development of competitive products by competitors; • timely and efficient completion of product design; • timely and efficient implementation of manufacturing and manufacturing processes; • timely remediation of product performance issues, if any, identified during testing; • assembly processes and product performance at customer locations; • differentiation of our products from our competitors’ products; • management of customer expectations concerning product capabilities and product life cycles; • transition of customers to new product platforms; • compliance with product safety regulations; • ability to protect products from cyber attacks when used by our customers; • ability to attract and retain technical talent; and • innovation that does not infringe on the intellectual property rights of third parties. Risks Associated with Operating a Global Business We are subject to risks of operating internationally. A significant portion of our total revenues is derived from customers outside the United States. Our international sales and operations are subject to significant risks and difficulties, including: • unexpected changes in legal and regulatory requirements affecting international markets; • cost increases due to inflation • changes in tariffs and exchange rates; • social, political and economic instability, acts of terrorism and international conflicts; • disruption caused by health pandemics, such as the coronavirus; • difficulties in protecting intellectual property; • difficulties in accounts receivable collection; • cultural differences in the conduct of business; • difficulties in staffing and managing international operations; • compliance with anti-corruption laws; • compliance with data privacy regulations; 15 If we fail to develop new technologies to adapt to our customers’ needs and if our customers fail to accept our new products, our revenues will be adversely affected. We believe that our technological position depends primarily on the technical competence and creative ability of our engineers. In a rapidly evolving market, such as ours, the development or acquisition of new technologies, commercialization of those technologies into products and market acceptance and customer demand for those products are critical to our success. Successful product development or acquisition, introduction and acceptance depend upon a number of factors, including: • new product selection; • ability to meet customer requirements including with respect to safety and cyber security; • development of competitive products by competitors; • timely and efficient completion of product design; • timely and efficient implementation of manufacturing and manufacturing processes; • timely remediation of product performance issues, if any, identified during testing; • assembly processes and product performance at customer locations; • differentiation of our products from our competitors’ products; • management of customer expectations concerning product capabilities and product life cycles; • transition of customers to new product platforms; • compliance with product safety regulations; • ability to protect products from cyber attacks when used by our customers; • ability to attract and retain technical talent; and • innovation that does not infringe on the intellectual property rights of third parties. Risks Associated with Operating a Global Business We are subject to risks of operating internationally. A significant portion of our total revenues is derived from customers outside the United States. Our international sales and operations are subject to significant risks and difficulties, including: • unexpected changes in legal and regulatory requirements affecting international markets; • cost increases due to inflation • changes in tariffs and exchange rates; • social, political and economic instability, acts of terrorism and international conflicts; • disruption caused by health pandemics, such as the coronavirus; • difficulties in protecting intellectual property; • difficulties in accounts receivable collection; • cultural differences in the conduct of business; • difficulties in staffing and managing international operations; • compliance with anti-corruption laws; • compliance with data privacy regulations; 15"
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.498,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Assets Cash and cash equivalents $ 794,184 $ 60,589 $ — $ 854,773 Marketable securities — 39,612 — 39,612 Long-term marketable securities 44,098 66,679 — 110,777 Other current assets — 86 — 86 Total $ 838,282 $ 166,966 $ — $ 1,005,248 Liabilities Other current liabilities $ — $ 4,215 $ — $ 4,215 Total $ — $ 4,215 $ — $ 4,215 The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2023 and 2022 were as follows: December 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 757,571 $ 757,571 $ 854,773 $ 854,773 Marketable securities 179,588 179,588 150,389 150,389 Derivative assets 18,746 18,746 86 86 Liabilities Derivative liabilities 2,545 2,545 4,215 4,215 Convertible debt (1) — — 50,115 139,007 (1)The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Critical Audit Matters",
      "prior_title": "Critical Audit Matters",
      "similarity_score": 0.496,
      "confidence": "low",
      "key_changes": [
        "Removed sentence: \"Critical Audit Matters Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.\"",
        "Removed sentence: \"The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\"",
        "Reworded sentence: \"Revenue Recognition - Certain Product Revenue As described in Note B to the consolidated financial statements, the Company recognizes revenue for transactions that do not meet the criteria for over time recognition at a point in time when shipped or delivered based on contractual terms.\"",
        "Reworded sentence: \"These procedures included testing the effectiveness of controls relating to the recognition process for certain product revenue.\""
      ],
      "current_body": "The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition - Certain Product Revenue As described in Note B to the consolidated financial statements, the Company recognizes revenue for transactions that do not meet the criteria for over time recognition at a point in time when shipped or delivered based on contractual terms. The transaction price is the amount of consideration the Company expects to be entitled to in exchange for such products, which is generally at contractually stated prices. The Company’s total product revenue was $2.1 billion for the year ended December 31, 2023, of which a majority relates to certain product revenue. The principal consideration for our determination that performing procedures relating to revenue recognition for certain product revenue is a critical audit matter is a high degree of auditor effort in performing procedures related to revenue recognition for certain of the Company’s product revenue. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the recognition process for certain product revenue. These procedures also included, among others (i) testing the completeness, accuracy, and occurrence of revenue recognized for a sample of certain product revenue transactions by obtaining and inspecting source documents, such as purchase orders, invoices, and proof of shipment or delivery; (ii) testing the cut off of revenue recognized for a sample of certain product revenue transactions near period end by obtaining and inspecting source documents, such as purchase orders, invoices and proof of shipment or delivery; and (iii) confirming a sample of outstanding customer invoice balances as of December 31, 2023 and, for confirmations not returned, obtaining and inspecting source documents, such as purchase orders, invoices, proof of shipment or delivery, and subsequent cash receipts. /s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP Boston, Massachusetts Boston, Massachusetts February 22, 2024 We have served as the Company’s auditor since 1968. 39 39 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Critical Audit Matters Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Conversions of Senior Unsecured Notes Conversions of Senior Unsecured Notes Conversions of Senior Unsecured Notes Conversions of Senior Unsecured Notes As described in Notes B and J to the consolidated financial statements, during 2022, forty two holders of the Company’s convertible senior unsecured notes, originally issued on December 12, 2016, converted $66.8 million of the senior unsecured notes. The Company may satisfy its conversion obligation by paying cash for the principal amount of the senior unsecured notes and paying or delivering cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at management’s election for the amount in excess of principal. As described in Notes B and J to the consolidated financial statements, during 2022, forty two holders of the Company’s convertible senior unsecured notes, originally issued on December 12, 2016, converted $66.8 million of the senior unsecured notes. The Company may satisfy its conversion obligation by paying cash for the principal amount of the senior unsecured notes and paying or delivering cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at management’s election for the amount in excess of principal. As described in Notes B and J to the consolidated financial statements, during 2022, forty two holders of the Company’s convertible senior unsecured notes, originally issued on December 12, 2016, converted $66.8 million of the senior unsecured notes. The Company may satisfy its conversion obligation by paying cash for the principal amount of the senior unsecured notes and paying or delivering cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at management’s election for the amount in excess of principal. The principal considerations for our determination that performing procedures relating to the conversions of senior unsecured notes is a critical audit matter are (i) the high degree of audit effort in performing procedures and evaluating management’s calculation of the conversion transactions and the related settlement calculations and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. The principal considerations for our determination that performing procedures relating to the conversions of senior unsecured notes is a critical audit matter are (i) the high degree of audit effort in performing procedures and evaluating management’s calculation of the conversion transactions and the related settlement calculations and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. The principal considerations for our determination that performing procedures relating to the conversions of senior unsecured notes is a critical audit matter are (i) the high degree of audit effort in performing procedures and evaluating management’s calculation of the conversion transactions and the related settlement calculations and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s review of conversion transactions related to the Company’s senior unsecured notes, which included controls related to the conversion values and related settlement calculations. These procedures also included, among others, on a test basis (i) evaluating the appropriateness of the conversion Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s review of conversion transactions related to the Company’s senior unsecured notes, which included controls related to the conversion values and related settlement calculations. These procedures also included, among others, on a test basis (i) evaluating the appropriateness of the conversion Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s review of conversion transactions related to the Company’s senior unsecured notes, which included controls related to the conversion values and related settlement calculations. These procedures also included, among others, on a test basis (i) evaluating the appropriateness of the conversion 46 46 46 Table of Contents and settlement accounting; (ii) testing the completeness and accuracy of the conversion values; and (iii) recalculating the settlement amounts. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the conversion and settlement accounting. /s/ PricewaterhouseCoopers LLP Boston, Massachusetts February 22, 2023 We have served as the Company’s auditor since 1968. 47 and settlement accounting; (ii) testing the completeness and accuracy of the conversion values; and (iii) recalculating the settlement amounts. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the conversion and settlement accounting. /s/ PricewaterhouseCoopers LLP Boston, Massachusetts February 22, 2023 We have served as the Company’s auditor since 1968. 47 and settlement accounting; (ii) testing the completeness and accuracy of the conversion values; and (iii) recalculating the settlement amounts. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the conversion and settlement accounting. and settlement accounting; (ii) testing the completeness and accuracy of the conversion values; and (iii) recalculating the settlement amounts. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the conversion and settlement accounting. and settlement accounting; (ii) testing the completeness and accuracy of the conversion values; and (iii) recalculating the settlement amounts. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the conversion and settlement accounting. /s/ PricewaterhouseCoopers LLP /s/ PricewaterhouseCoopers LLP /s/ PricewaterhouseCoopers LLP Boston, Massachusetts Boston, Massachusetts Boston, Massachusetts February 22, 2023 February 22, 2023 February 22, 2023 We have served as the Company’s auditor since 1968. We have served as the Company’s auditor since 1968. We have served as the Company’s auditor since 1968. 47 47 47 Table of Contents TERADYNE, INC. CONSOLIDATED BALANCE SHEETS December 31, 2022 2021 (in thousands, except per share amount) ASSETS Current assets: Cash and cash equivalents $ 854,773 $ 1,122,199 Marketable securities 39,612 244,231 Accounts receivable, less allowance for credit losses of $1,955 and $2,012 in 2022 and 2021, respectively 491,145 550,749 Inventories, net 325,019 243,330 Prepayments 532,962 406,266 Other current assets 14,404 9,452 Total current assets 2,257,915 2,576,227 Property, plant and equipment, net 418,683 387,240 Operating lease right-of-use assets, net 73,734 68,807 Marketable securities 110,777 133,858 Deferred tax assets 142,784 102,428 Retirement plans assets 11,761 15,110 Other assets 28,925 24,096 Acquired intangible assets, net 53,478 75,635 Goodwill 403,195 426,024 Total assets $ 3,501,252 $ 3,809,425 LIABILITIES Current liabilities: Accounts payable $ 139,722 $ 153,133 Accrued employees’ compensation and withholdings 212,266 253,667 Deferred revenue and customer advances 148,285 146,185 Other accrued liabilities 112,271 124,187 Operating lease liabilities 18,594 19,977 Income taxes payable 65,010 88,789 Current debt 50,115 19,182 Total current liabilities 746,263 805,120 Retirement plans liabilities 116,005 151,141 Long-term deferred revenue and customer advances 45,131 54,921 Deferred tax liabilities 3,267 6,327 Long-term other accrued liabilities 15,981 15,497 Long-term operating lease liabilities 64,176 56,178 Long-term income taxes payable 59,135 67,041 Debt — 89,244 Total liabilities 1,049,958 1,245,469 Commitments and contingencies (Note M) Mezzanine equity: Convertible common shares — 1,512 SHAREHOLDERS’ EQUITY Common stock, $0.125 par value, 1,000,000 shares authorized, 155,759 and 162,251 shares issued and outstanding at December 31, 2022 and 2021, respectively 19,470 20,281 Additional paid-in capital 1,755,963 1,811,545 Accumulated other comprehensive loss (49,868 ) (5,948 ) Retained earnings 725,729 736,566 Total shareholders’ equity 2,451,294 2,562,444 Total liabilities, convertible common shares and shareholders’ equity $ 3,501,252 $ 3,809,425 The accompanying notes are an integral part of the consolidated financial statements. 48 TERADYNE, INC. CONSOLIDATED BALANCE SHEETS December 31, 2022 2021 (in thousands, except per share amount) ASSETS Current assets: Cash and cash equivalents $ 854,773 $ 1,122,199 Marketable securities 39,612 244,231 Accounts receivable, less allowance for credit losses of $1,955 and $2,012 in 2022 and 2021, respectively 491,145 550,749 Inventories, net 325,019 243,330 Prepayments 532,962 406,266 Other current assets 14,404 9,452 Total current assets 2,257,915 2,576,227 Property, plant and equipment, net 418,683 387,240 Operating lease right-of-use assets, net 73,734 68,807 Marketable securities 110,777 133,858 Deferred tax assets 142,784 102,428 Retirement plans assets 11,761 15,110 Other assets 28,925 24,096 Acquired intangible assets, net 53,478 75,635 Goodwill 403,195 426,024 Total assets $ 3,501,252 $ 3,809,425 LIABILITIES Current liabilities: Accounts payable $ 139,722 $ 153,133 Accrued employees’ compensation and withholdings 212,266 253,667 Deferred revenue and customer advances 148,285 146,185 Other accrued liabilities 112,271 124,187 Operating lease liabilities 18,594 19,977 Income taxes payable 65,010 88,789 Current debt 50,115 19,182 Total current liabilities 746,263 805,120 Retirement plans liabilities 116,005 151,141 Long-term deferred revenue and customer advances 45,131 54,921 Deferred tax liabilities 3,267 6,327 Long-term other accrued liabilities 15,981 15,497 Long-term operating lease liabilities 64,176 56,178 Long-term income taxes payable 59,135 67,041 Debt — 89,244 Total liabilities 1,049,958 1,245,469 Commitments and contingencies (Note M) Mezzanine equity: Convertible common shares — 1,512 SHAREHOLDERS’ EQUITY Common stock, $0.125 par value, 1,000,000 shares authorized, 155,759 and 162,251 shares issued and outstanding at December 31, 2022 and 2021, respectively 19,470 20,281 Additional paid-in capital 1,755,963 1,811,545 Accumulated other comprehensive loss (49,868 ) (5,948 ) Retained earnings 725,729 736,566 Total shareholders’ equity 2,451,294 2,562,444 Total liabilities, convertible common shares and shareholders’ equity $ 3,501,252 $ 3,809,425 The accompanying notes are an integral part of the consolidated financial statements. 48 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "Product Warranty",
      "prior_title": "Product Warranty",
      "similarity_score": 0.496,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance or shipment.\"",
        "Reworded sentence: \"The balance below is included in other accrued liabilities: Amount (in thousands) Balance at December 31, 2020 $ 16,633 Accruals for warranties issued during the period 35,727 Accruals related to pre-existing warranties (6,846 ) Settlements made during the period (20,937 ) Balance at December 31, 2021 24,577 Accruals for warranties issued during the period 21,851 Accruals related to pre-existing warranties (5,618 ) Settlements made during the period (26,629 ) Balance at December 31, 2022 14,181 Accruals for warranties issued during the period 21,644 Accruals related to pre-existing warranties (1,576 ) Settlements made during the period (18,551 ) Balance at December 31, 2023 $ 15,698 Amount\""
      ],
      "current_body": "Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities: Amount (in thousands) Balance at December 31, 2020 $ 16,633 Accruals for warranties issued during the period 35,727 Accruals related to pre-existing warranties (6,846 ) Settlements made during the period (20,937 ) Balance at December 31, 2021 24,577 Accruals for warranties issued during the period 21,851 Accruals related to pre-existing warranties (5,618 ) Settlements made during the period (26,629 ) Balance at December 31, 2022 14,181 Accruals for warranties issued during the period 21,644 Accruals related to pre-existing warranties (1,576 ) Settlements made during the period (18,551 ) Balance at December 31, 2023 $ 15,698 Amount",
      "prior_body": "Product Warranty Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities: Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities: Amount Amount (in thousands)"
    },
    {
      "status": "MODIFIED",
      "current_title": "We may face risks associated with shareholder activism.",
      "prior_title": "We may face risks associated with shareholder activism.",
      "similarity_score": 0.494,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Such activities could interfere with our ability to execute our business plans, be costly and time-consuming, disrupt our operations, divert the attention of management, or result in our initiating borrowing or increasing our share repurchase plan or dividend, any of which could have an adverse effect on our business or stock price.\""
      ],
      "current_body": "We may become subject to campaigns by shareholders advocating corporate actions such as financial restructuring, increased borrowing, special dividends, stock repurchases or divestitures. Such activities could interfere with our ability to execute our business plans, be costly and time-consuming, disrupt our operations, divert the attention of management, or result in our initiating borrowing or increasing our share repurchase plan or dividend, any of which could have an adverse effect on our business or stock price.",
      "prior_body": "We may become subject to campaigns by shareholders advocating corporate actions such as financial restructuring, increased borrowing, special dividends, stock repurchases or divestitures. Such activities could 26 Table of Contents interfere with our ability to execute our business plans, be costly and time-consuming, disrupt our operations, divert the attention of management, or result in our initiating borrowing or increasing our share repurchase plan or dividend, any of which could have an adverse effect on our business or stock price. Provisions of our charter and by-laws and Massachusetts law may make a takeover of Teradyne more difficult. There are provisions in our basic corporate documents and under Massachusetts law that could discourage, delay or prevent a change in control, even if a change in control may be regarded as beneficial to some or all of our stockholders. Item 1B: Unresolved Staff Comments None. Item 2: Properties We conduct manufacturing, engineering, sales and marketing, service, corporate administration and other operations in various leased and owned facilities throughout the world. We own approximately 720,000 square feet of office space and lease over 1,500,000 square feet of office space. Our corporate headquarters is in North Reading, Massachusetts, in buildings that we own consisting of approximately 422,000 square feet. We believe our existing facilities and planned expansions noted below are adequate to meet our current and reasonably foreseeable requirements. We regularly evaluate our expected facility needs and periodically make adjustments based on these evaluations. In 2019, we purchased land in Denmark to construct a new building for our Robotics operations. The new building construction is expected to be completed by the first quarter of 2024. Item 3: Legal Proceedings We are subject to legal proceedings, claims and investigations that arise in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. We believe that we have meritorious defenses against all pending claims and intend to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, we believe the potential losses associated with all these actions are unlikely to have a material adverse effect on our results of operations, financial condition or cash flows. Item 4: Mine Safety Disclosure Not Applicable. 27 interfere with our ability to execute our business plans, be costly and time-consuming, disrupt our operations, divert the attention of management, or result in our initiating borrowing or increasing our share repurchase plan or dividend, any of which could have an adverse effect on our business or stock price. Provisions of our charter and by-laws and Massachusetts law may make a takeover of Teradyne more difficult. There are provisions in our basic corporate documents and under Massachusetts law that could discourage, delay or prevent a change in control, even if a change in control may be regarded as beneficial to some or all of our stockholders. Item 1B: Unresolved Staff Comments None. Item 2: Properties We conduct manufacturing, engineering, sales and marketing, service, corporate administration and other operations in various leased and owned facilities throughout the world. We own approximately 720,000 square feet of office space and lease over 1,500,000 square feet of office space. Our corporate headquarters is in North Reading, Massachusetts, in buildings that we own consisting of approximately 422,000 square feet. We believe our existing facilities and planned expansions noted below are adequate to meet our current and reasonably foreseeable requirements. We regularly evaluate our expected facility needs and periodically make adjustments based on these evaluations. In 2019, we purchased land in Denmark to construct a new building for our Robotics operations. The new building construction is expected to be completed by the first quarter of 2024. Item 3: Legal Proceedings We are subject to legal proceedings, claims and investigations that arise in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. We believe that we have meritorious defenses against all pending claims and intend to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, we believe the potential losses associated with all these actions are unlikely to have a material adverse effect on our results of operations, financial condition or cash flows. Item 4: Mine Safety Disclosure Not Applicable. 27 interfere with our ability to execute our business plans, be costly and time-consuming, disrupt our operations, divert the attention of management, or result in our initiating borrowing or increasing our share repurchase plan or dividend, any of which could have an adverse effect on our business or stock price."
    },
    {
      "status": "MODIFIED",
      "current_title": "Timing of Revenue Recognition",
      "prior_title": "Timing of Revenue Recognition",
      "similarity_score": 0.493,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Point in Time $ 1,141,882 $ 356,417 $ 268,379 $ 296,252 $ 66,986 $ 129,399 $ — $ 2,259,315 Over Time 290,739 29,598 69,818 7,540 4,405 14,883 — 416,983 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298\""
      ],
      "current_body": "Point in Time $ 1,141,882 $ 356,417 $ 268,379 $ 296,252 $ 66,986 $ 129,399 $ — $ 2,259,315 Over Time 290,739 29,598 69,818 7,540 4,405 14,883 — 416,983 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298",
      "prior_body": "Timing of Revenue Recognition Timing of Revenue Recognition Point in Time Point in Time Over Time Over Time Total Total Total Geographical Market"
    },
    {
      "status": "MODIFIED",
      "current_title": "Timing of Revenue Recognition",
      "prior_title": "Timing of Revenue Recognition",
      "similarity_score": 0.489,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Point in Time $ 1,445,238 $ 344,693 $ 402,074 $ 317,514 $ 73,812 $ 189,040 $ 251 $ 2,772,622 Over Time 261,646 29,013 67,272 8,218 3,594 12,680 — 382,423 Total $ 1,706,884 $ 373,706 $ 469,346 $ 325,732 $ 77,406 $ 201,720 $ 251 $ 3,155,045\""
      ],
      "current_body": "Point in Time $ 1,141,882 $ 356,417 $ 268,379 $ 296,252 $ 66,986 $ 129,399 $ — $ 2,259,315 Over Time 290,739 29,598 69,818 7,540 4,405 14,883 — 416,983 Total $ 1,432,621 $ 386,015 $ 338,197 $ 303,792 $ 71,391 $ 144,282 $ — $ 2,676,298",
      "prior_body": "Timing of Revenue Recognition Timing of Revenue Recognition Point in Time Point in Time Over Time Over Time Total Total Total Geographical Market"
    },
    {
      "status": "MODIFIED",
      "current_title": "Income Taxes",
      "prior_title": "Income Taxes",
      "similarity_score": 0.487,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Income tax expense for 2023 and 2022 totaled $76.8 million and $124.9 million, respectively.\"",
        "Reworded sentence: \"The tax savings attributable to the Singapore tax holiday for the years ended December 31, 2023 and 2022 were $1.4 million or $0.01 per diluted share and $16.0 million or $0.09 per diluted share, respectively.\"",
        "Removed sentence: \"Capital Resources and Material Cash Requirements Our cash, cash equivalents and marketable securities balance decreased by $495 million in 2022 to $1,005 million.\"",
        "Removed sentence: \"Cash decreased due to stock repurchases in the amount of $752 million, quarterly cash dividend payments in the amount of $70 million, payments of convertible debt principal in the amount of $67 million partially offset by cash generated by our global operations.\"",
        "Removed sentence: \"Operating activities during 2022 provided cash of $577.9 million.\""
      ],
      "current_body": "Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized.",
      "prior_body": "Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.483,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Assets Cash $ 632,417 $ — $ — $ 632,417 Cash equivalents 161,767 60,589 — 222,356 Available for sale securities: Corporate debt securities — 50,856 — 50,856 U.S.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands, except per share amount)",
      "prior_title": "share amount)",
      "similarity_score": 0.47,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"ASSETS Current assets: Cash and cash equivalents $ 757,571 $ 854,773 Marketable securities 62,154 39,612 Accounts receivable, less allowance for credit losses of $1,988 and $1,955 in 2023 and 2022, respectively 422,124 491,145 Inventories, net 309,974 325,019 Prepayments 548,970 532,962 Other current assets 37,992 14,404 Current assets held for sale 23,250 — Total current assets 2,162,035 2,257,915 Property, plant and equipment, net 445,492 418,683 Operating lease right-of-use assets, net 73,417 73,734 Marketable securities 117,434 110,777 Deferred tax assets 175,775 142,784 Retirement plans assets 11,504 11,761 Other assets 38,580 28,925 Acquired intangible assets, net 35,404 53,478 Goodwill 415,652 403,195 Long-term assets held for sale 11,531 — Total assets $ 3,486,824 $ 3,501,252\""
      ],
      "current_body": "ASSETS Current assets: Cash and cash equivalents $ 757,571 $ 854,773 Marketable securities 62,154 39,612 Accounts receivable, less allowance for credit losses of $1,988 and $1,955 in 2023 and 2022, respectively 422,124 491,145 Inventories, net 309,974 325,019 Prepayments 548,970 532,962 Other current assets 37,992 14,404 Current assets held for sale 23,250 — Total current assets 2,162,035 2,257,915 Property, plant and equipment, net 445,492 418,683 Operating lease right-of-use assets, net 73,417 73,734 Marketable securities 117,434 110,777 Deferred tax assets 175,775 142,784 Retirement plans assets 11,504 11,761 Other assets 38,580 28,925 Acquired intangible assets, net 35,404 53,478 Goodwill 415,652 403,195 Long-term assets held for sale 11,531 — Total assets $ 3,486,824 $ 3,501,252",
      "prior_body": "share amount) ASSETS ASSETS ASSETS Current assets: Current assets: Cash and cash equivalents Cash and cash equivalents Marketable securities Marketable securities Accounts receivable, less allowance for credit losses of $1,955 and $2,012 in 2022 and 2021, respectively Accounts receivable, less allowance for credit losses of $1,955 and $2,012 in 2022 and 2021, respectively Inventories, net Inventories, net Prepayments Prepayments Other current assets Other current assets Total current assets Total current assets Property, plant and equipment, net Property, plant and equipment, net Operating lease right-of-use assets, net Operating lease right-of-use assets, net Marketable securities Marketable securities Deferred tax assets Deferred tax assets Retirement plans assets Retirement plans assets Other assets Other assets Acquired intangible assets, net Acquired intangible assets, net Goodwill Goodwill Total assets Total assets LIABILITIES"
    },
    {
      "status": "MODIFIED",
      "current_title": "Provisions of our charter and by-laws and Massachusetts law may make a takeover of Teradyne more difficult.",
      "prior_title": "Provisions of our charter and by-laws and Massachusetts law may make a takeover of Teradyne more difficult.",
      "similarity_score": 0.466,
      "confidence": "low",
      "key_changes": [
        "Added sentence: \"Item 1B: Unresolved Staff Comments None.\"",
        "Added sentence: \"Item 1C: Cybersecurity We believe cybersecurity is critical to supporting our vision and enabling our strategy.\"",
        "Added sentence: \"As a producer of leading-edge electronic testing products and maker of advanced robotics, we face a multitude of cybersecurity threats that range from attacks common to most industries, such as ransomware and denial-of-service, to attacks from more advanced, persistent, and highly organized adversaries, including nation state actors, that may target us for our role in critical infrastructure sectors.\"",
        "Added sentence: \"Our customers, suppliers, and partners face similar cybersecurity threats and, while we have not been materially affected to date, a cybersecurity incident impacting us or any of these entities could materially adversely affect our operations, performance, and results of operations.\"",
        "Added sentence: \"These cybersecurity threats and related risks make it imperative that we maintain a strong focus on cybersecurity.\""
      ],
      "current_body": "There are provisions in our basic corporate documents and under Massachusetts law that could discourage, delay or prevent a change in control, even if a change in control may be regarded as beneficial to some or all of our stockholders. Item 1B: Unresolved Staff Comments None. Item 1C: Cybersecurity We believe cybersecurity is critical to supporting our vision and enabling our strategy. As a producer of leading-edge electronic testing products and maker of advanced robotics, we face a multitude of cybersecurity threats that range from attacks common to most industries, such as ransomware and denial-of-service, to attacks from more advanced, persistent, and highly organized adversaries, including nation state actors, that may target us for our role in critical infrastructure sectors. Our customers, suppliers, and partners face similar cybersecurity threats and, while we have not been materially affected to date, a cybersecurity incident impacting us or any of these entities could materially adversely affect our operations, performance, and results of operations. These cybersecurity threats and related risks make it imperative that we maintain a strong focus on cybersecurity. 21 21 Table of Contents Table of Contents Table of Contents Governance The Board of Directors oversees management’s processes for identifying and mitigating risks, including cybersecurity risks, to help align our risk exposure with our strategic objectives. Senior leadership, including our Chief Information Security Officer (\"CISO\"), regularly brief the Audit Committee of the Board of Directors on our cybersecurity and information security posture. The corporate information security organization, under the CISO, has implemented a governance structure and processes to assess, identify, manage, and report cybersecurity risks. The CISO chairs management’s Cybersecurity Steering Committee, in which current cyber threats, program performance, and ongoing risk mitigations are regularly reviewed. Cybersecurity related risks are also integrated into our overall enterprise risk management (\"ERM\") process. These risks are included in the risk universe that the ERM function evaluates to assess top enterprise risks on an annual basis and is reviewed and evaluated by the Board of Directors. The Board of Directors is also apprised of cybersecurity issues or incidents deemed to have a moderate or higher business impact as they arise, even if considered immaterial. In the event of a significant incident, we intend to follow our detailed incident response playbooks, which outline the steps to be followed from incident detection through mitigation, recovery and notification, including escalation to functional areas (e.g., legal), and escalation to senior leadership via the Cybersecurity Steering Committee. Upon escalation, the Cybersecurity Steering Committee will review all inputs, assess the materiality of the incident, and then brief the Board of Directors on the determination and on how management intends to respond.",
      "prior_body": "There are provisions in our basic corporate documents and under Massachusetts law that could discourage, delay or prevent a change in control, even if a change in control may be regarded as beneficial to some or all of our stockholders."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.465,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Corporate debt securities $ 57,006 $ 3 $ (6,153 ) $ 50,856 $ 50,667 U.S.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "MODIFIED",
      "current_title": "(in thousands)",
      "prior_title": "(in thousands)",
      "similarity_score": 0.452,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Assets Cash $ 298,156 $ — $ — $ 298,156 Cash equivalents 453,298 6,117 — 459,415 Available for sale securities: Corporate debt securities — 52,734 — 52,734 U.S.\""
      ],
      "current_body": "Net income $ 448,752 $ 715,501 $ 1,014,589 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively 17,407 (29,031 ) (36,207 ) Available-for-sale marketable securities: Unrealized gains (losses) on marketable securities arising during period, net of tax of $568, $(3,388), ($578), respectively 2,423 (12,666 ) (2,255 ) Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $12, $25, $(277), respectively 44 301 (995 ) 2,467 (12,365 ) (3,250 ) Cash flow hedges: Unrealized gains (losses) arising during period, net of tax of $1,537, $(708), $0, respectively 5,464 (2,517 ) — Less: Reclassification adjustment for losses included in net income, net of tax of $(686), $0, $0, respectively (2,441 ) — — 3,023 (2,517 ) — Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively (7 ) (7 ) (7 ) Other comprehensive income (loss) 22,890 (43,920 ) (39,464 ) Comprehensive income $ 471,642 $ 671,581 $ 975,125 The accompanying notes are an integral part of the consolidated financial statements. 42 42 Table of Contents Table of Contents Table of Contents",
      "prior_body": "Net income Net income Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Foreign currency translation adjustment, net of tax of $0, $0, $0, respectively Available-for-sale marketable securities: Available-for-sale marketable securities: Unrealized (losses) gains on marketable securities arising during period, net of tax of $(3,388), $(578), $1,629, respectively Unrealized (losses) gains on marketable securities arising during period, net of tax of $( ), $( ), $ , respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $25, $(277), $(665), respectively Cash flow hedges: Cash flow hedges: Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Unrealized losses arising during period, net of tax of $(708), $0, $0, respectively Defined benefit post-retirement plan: Defined benefit post-retirement plan: Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Amortization of prior service credit, net of tax $(2), $(2), $(2), respectively Other comprehensive (loss) income Other comprehensive (loss) income Comprehensive income Comprehensive income The accompanying notes are an integral part of the consolidated financial statements. The accompanying notes are an integral part of the consolidated financial statements. 50 50 0 Table of Contents TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC. CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS’ EQUITY Shareholders’ Equity Convertible Common Shares Value Common Stock Shares Common Stock Par Value Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income (Accumulated Deficit) Retained Earnings Total Shareholders’ Equity (in thousands) Year Ended December 31, 2019 $ — 166,410 $ 20,801 $ 1,720,129 $ (18,854 ) $ (241,918 ) $ 1,480,158 Net issuance of common stock under stock-based plans 1,230 154 4,696 4,850 Stock-based compensation expense 44,285 44,285 Repurchase of common stock (1,517 ) (190 ) (88,275 ) (88,465 ) Cash dividends ($0.40 per share) (66,540 ) (66,540 ) Convertible common shares 3,787 (3,787 ) (3,787 ) Net income 784,147 784,147 Other comprehensive income 52,370 52,370 Year Ended December 31, 2020 3,787 166,123 20,765 1,765,323 33,516 387,414 2,207,018 Net issuance of common stock under stock-based plans 899 113 (225 ) (112 ) Stock-based compensation expense 45,632 45,632 Repurchase of common stock (4,771 ) (597 ) (599,403 ) (600,000 ) Cash dividends ($0.40 per share) (66,034 ) (66,034 ) Settlements of convertible notes 8,148 1,018 984,622 985,640 Exercise of convertible notes hedge call options (8,148 ) (1,018 ) (986,082 ) (987,100 ) Convertible common shares (2,275 ) 2,275 2,275 Net income 1,014,589 1,014,589 Other comprehensive loss (39,464 ) (39,464 ) Year Ended December 31, 2021 1,512 162,251 20,281 1,811,545 (5,948 ) 736,566 2,562,444 Net issuance of common stock under stock-based plans 761 96 (4,471 ) (4,375 ) Stock-based compensation expense 48,466 48,466 Repurchase of common stock (7,253 ) (907 ) (751,175 ) (752,082 ) Cash dividends ($0.44 per share) (69,763 ) (69,763 ) Settlements of convertible notes 1,495 187 (442 ) (255 ) Exercise of convertible notes hedge call options (1,495 ) (187 ) 187 — Convertible common shares (1,512 ) 1,512 1,512 Cumulative effect of change in accounting principle related to convertible debt (100,834 ) 94,600 (6,234 ) Net income 715,501 715,501 Other comprehensive loss (43,920 ) (43,920 ) Year Ended December 31, 2022 $ — 155,759 $ 19,470 $ 1,755,963 $ (49,868 ) $ 725,729 $ 2,451,294 The accompanying notes are an integral part of the consolidated financial statements. 51 TERADYNE, INC."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Goodwill, Intangible and Long-Lived Assets",
      "prior_title": "Goodwill, Intangible and Long-Lived Assets",
      "current_body": "We assess goodwill for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently, when events and circumstances occur indicating that the recorded goodwill may be impaired. We review intangible and long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Impairment of intangible and long-lived assets would result in the asset being written down to its estimated fair value. The calculated fair value of a reporting unit or intangible or long-lived asset is dependent upon discounted cash flow (“DCF”) models, discount rates, and market multiples. DCF models rely on our forecasted mid-term plans which are subjective based on customer or market conditions and can change materially. We utilize third party specialists when determining discount rates and selected market multiples. A change in any of these key assumptions could result in a reporting unit, intangible asset, or long-lived asset being impaired in a future period."
    },
    {
      "status": "UNCHANGED",
      "current_title": "The implementation of tariffs on our products may have a material impact on our business.",
      "prior_title": "The implementation of tariffs on our products may have a material impact on our business.",
      "current_body": "Our business operations and supply chain are global and may be disrupted by the implementation of tariffs. In 2018, the United States Trade Representative imposed a 25% tariff on many lists of products, including certain Teradyne products that are made in China and imported into the United States. We have implemented operational changes that mitigate the impact of the 25% tariff on the import of our impacted products into the United States. As a result, the existing tariff has not had a material adverse effect on our business, financial condition or results of operations. The implementation of additional tariffs by the United States could have a material adverse effect on our business, financial condition or results of operations. In addition to the actions taken by the United States, China has implemented retaliatory tariffs on products made in the United States and imported into China, including certain Teradyne products. We have implemented, if appropriate, operational changes that would mitigate the impact of the retaliatory tariffs. However, notwithstanding our efforts, the retaliatory tariffs or other trade restrictions implemented by China could disrupt our business operations, sales and supply chain and, therefore, have a material adverse effect on our business, financial condition or results of operations."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Restrictive covenants in the agreement governing our senior secured revolving credit facility may restrict our ability to pursue business strategies.",
      "prior_title": "Restrictive covenants in the agreement governing our senior secured revolving credit facility may restrict our ability to pursue business strategies.",
      "current_body": "The agreement governing our senior secured revolving credit facility limits our ability, among other things, to incur additional secured indebtedness; sell, transfer, license or dispose of assets; consolidate or merge; enter into transactions with our affiliates; and incur liens. In addition, our senior secured revolving credit facility contains financial and other restrictive covenants that limit our ability to engage in activities that may be in our long-term best interest, such as, subject to permitted exceptions, making capital expenditures in excess of certain thresholds, making investments, loans and other advances, and prepaying any additional indebtedness while our indebtedness under our senior secured revolving credit facility is outstanding. Our failure to comply with financial and other restrictive covenants could result in an event of default, which if not cured or waived, could result in the lenders requiring immediate payment of all outstanding borrowings or foreclosing on collateral pledged to them to secure the indebtedness.[3]"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Third parties may claim we are infringing their intellectual property and we could suffer significant litigation costs, licensing expenses or be prevented from selling our products.",
      "prior_title": "Third parties may claim we are infringing their intellectual property and we could suffer significant litigation costs, licensing expenses or be prevented from selling our products.",
      "current_body": "We have been sued for patent infringement and receive notifications from time to time that we may be in violation of patents held by others. An assertion of patent infringement against us, if successful, could have a material adverse effect on our ability to sell our products or it could force us to seek a license to the intellectual property rights of others or alter such products so that they no longer infringe the intellectual property rights of others. A license could be very expensive to obtain or may not be available at all. Similarly, changing our products or processes to avoid infringing the rights of others may be costly or impractical. Additionally, patent litigation could require a significant use of management resources and involve a lengthy and expensive defense, even if we eventually prevail. If we do not prevail, we might be forced to pay significant damages, obtain licenses, modify our products, or stop making our products; each of which could have a material adverse effect on our financial condition, operating results or cash flows."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Income Taxes",
      "prior_title": "Income Taxes",
      "current_body": "Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Evaluating the positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes” is a key judgment in the valuation of income taxes. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on our assessment, we concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Report of Independent Registered Public Accounting Firm",
      "prior_title": "Report of Independent Registered Public Accounting Firm",
      "current_body": "To the Board of Directors and Shareholders of Teradyne, Inc."
    },
    {
      "status": "UNCHANGED",
      "current_title": "A breach of the security of our products could negatively affect our business and results of operations.",
      "prior_title": "A breach of the security of our products could negatively affect our business and results of operations.",
      "current_body": "We may be subject to security breaches of certain of our products caused by viruses, illegal break-ins or hacking, sabotage, or acts of vandalism by third parties or our employees or contractors. A breach of our product security systems could have a material adverse effect on our business or financial results, disrupt our business, result in the disclosure or misuse of proprietary or confidential information, damage our reputation, cause losses, and increase our costs. We expect to continue to devote significant resources to the security of our products."
    },
    {
      "status": "UNCHANGED",
      "current_title": "We have significant guarantees, indemnification, and customer confidentiality obligations.",
      "prior_title": "We have significant guarantees, indemnification, and customer confidentiality obligations.",
      "current_body": "From time to time, we make guarantees to customers regarding the delivery, price and performance of our products and guarantee certain indebtedness, performance obligations or lease commitments of our subsidiary and affiliate companies. We also have agreed to provide indemnification to our officers, directors, employees and agents, to the extent permitted by law, arising from certain events or occurrences, while the officer, director, employee or agent, is or was serving at our request in such capacity. Additionally, we have confidentiality obligations to certain customers and if breached would require the payment of significant penalties. If we become liable under any of these obligations, it could materially and adversely affect our business, financial condition or operating results. For additional information see Note M: “Commitments and Contingencies-Guarantees and Indemnification Obligations” in Notes to Consolidated Financial Statements."
    },
    {
      "status": "UNCHANGED",
      "current_title": "We currently are, and in the future may be, subject to litigation or regulatory proceedings that could have an adverse effect on our business.",
      "prior_title": "We currently are, and in the future may be, subject to litigation or regulatory proceedings that could have an adverse effect on our business.",
      "current_body": "From time to time, we may be subject to litigation or other administrative, regulatory or governmental proceedings, including tax audits and resulting claims that could require significant management time and resources and cause us to incur expenses and, in the event of an adverse decision, pay damages or incur costs in an amount that could have a material adverse effect on our financial position or results of operations."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Equity Compensation Plans",
      "prior_title": "Equity Compensation Plans",
      "current_body": "In addition to our 1996 Employee Stock Purchase Plan discussed in Note Q: “Stock-Based Compensation” in Notes to Consolidated Financial Statements, we have a 2006 Equity and Cash Compensation Incentive Plan (the “2006 Equity Plan”) under which equity securities are authorized for issuance. The 2006 Equity Plan was initially approved by stockholders on May 25, 2006. At our annual meeting of stockholders held May 21, 2013, our stockholders approved an amendment to the 2006 Equity Plan to increase the number of shares issuable thereunder by 10.0 million, for an aggregate of 32.0 million shares issuable thereunder, and our stockholders also approved an amendment to our 1996 Employee Stock Purchase Plan to increase the number of shares issuable thereunder by 5.0 million, for an aggregate of 30.4 million shares issuable thereunder. At our annual meeting of stockholders held May 12, 2015, our stockholders approved an amendment to the 2006 Equity Plan to extend its term until May 12, 2025. At our annual meeting of stockholders held May 7, 2021, our stockholders approved an amendment to our 1996 Employee Stock Purchase Plan to increase the number of shares issuable thereunder by 3.0 million, for an aggregate of 33.4 million shares issuable thereunder. The following table presents information about these plans as of December 31, 2023 (share numbers in thousands):"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Our business is impacted by global and industry-specific economic cycles, which are difficult to predict, and actions we have taken or may take to offset these cycles may not be sufficient.",
      "prior_title": "Our business is impacted by global and industry-specific economic cycles, which are difficult to predict, and actions we have taken or may take to offset these cycles may not be sufficient.",
      "current_body": "Capital equipment providers in the electronics, semiconductor industries and robotics, such as Teradyne, have, in the past, been negatively impacted by both sudden slowdowns in the global economies and recurring cyclicality within those industries. These cycles have resulted in periods of over-supply; a trend we believe will continue to occur. Our business and results of operations depend, in significant part, upon capital expenditures of manufacturers of semiconductors electronics and other industrial products, which in turn depend upon the current and anticipated market demand for those products. Disruption or deterioration in economic conditions may reduce customer purchases of our products, thereby reducing our revenues and earnings. In addition, such adverse changes in economic conditions, and resulting slowdowns in the market for our products, may, among other things, result in increased price competition for our products, increased risk of excess and obsolete inventories, increased risk in the collectability of our accounts receivable from our customers, potential reserves for credit losses and write-offs of accounts receivable, increased risk of restructuring charges, and higher operating costs as a percentage of revenues, which, in each case and together, adversely affect our operating results. We are unable to predict the likely duration, frequency and severity of disruptions in financial markets, credit availability, and adverse economic conditions throughout the world, and we cannot ensure that the level of revenues or new orders for a fiscal quarter will be sustained in subsequent quarters. We have taken actions to address the effects of general economic variability and recurring industry cyclicality, including implementing cost control and reduction measures. We cannot predict whether these measures will be sufficient to offset global or market-specific disruptions that might affect our businesses and we may need to take additional or different measures in the future."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Inventories",
      "prior_title": "Inventories",
      "current_body": "Inventories are stated at the lower of cost using a standard costing system which approximates cost based on a first-in, first-out basis or net realizable value. On a quarterly basis, we evaluate all inventories for net realizable value. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed within the forecasted demand window, is written down to estimated net realizable value. Forecasted demand information is obtained from the sales and marketing groups and incorporates factors such as backlog and future revenues. The demand forecast is based on assumptions around the product life and customer and market expectations."
    },
    {
      "status": "UNCHANGED",
      "current_title": "If we are unable to protect our IP, we may lose a valuable asset or may incur costly litigation to protect our rights.",
      "prior_title": "If we are unable to protect our IP, we may lose a valuable asset or may incur costly litigation to protect our rights.",
      "current_body": "We protect the technology that is incorporated in our products in several ways, including through patent, copyright, trademark and trade secret protection and by contractual agreement. However, even with these protections, our IP may still be challenged, invalidated or subject to other infringement actions. While we believe that our IP has value in the aggregate, we do not believe that any single element of our IP is in itself essential. If a significant portion of our IP is invalidated or ineffective, our business could be materially adversely affected."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Foreign currency exchange rates and fluctuations in those rates may affect the Company’s ability to realize projected growth rates in its sales and earnings.",
      "prior_title": "Foreign currency exchange rates and fluctuations in those rates may affect the Company’s ability to realize projected growth rates in its sales and earnings.",
      "current_body": "Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70% of our Robotics revenue in 2023 was denominated in foreign currencies. Correspondingly, our results of operations and our ability to realize projected growth rates in sales and earnings in Robotics could be adversely affected if the U.S. dollar strengthens significantly against foreign currencies."
    },
    {
      "status": "UNCHANGED",
      "current_title": "We may discontinue or reduce our quarterly cash dividend or share repurchase program.",
      "prior_title": "We may discontinue or reduce our quarterly cash dividend or share repurchase program.",
      "current_body": "13 13 Table of Contents Table of Contents Table of Contents In January 2014, our Board of Directors initiated a quarterly cash dividend. Since 2014, the Board of Directors has increased our quarterly cash dividend from $0.06 per share to $0.12 per share. Holders of our common stock are only entitled to receive dividends when and if they are declared by our Board of Directors. In January 2021, our Board of Directors approved a $2.0 billion share repurchase program. In 2022 and 2021, we repurchased $752.1 million, and $600.0 million, respectively of common stock. In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new $2.0 billion share repurchase program. In 2023, we repurchased $400.5 million of common stock. We intend to repurchase up to $90.0 million in 2024. Under the share repurchase program, we may repurchase outstanding shares of our common stock from time to time in the open market and through privately negotiated transactions. Unless terminated earlier by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program. Future cash dividends and share repurchases are subject to the discretion of our Board of Directors and will depend, among other things, upon our earnings, capital requirements and financial condition. While we have declared a quarterly cash dividend on our common stock and authorized a share repurchase program, we are not required to do either and may reduce or eliminate our cash dividend or share repurchase program in the future. The reduction or elimination of our cash dividend or our share repurchase program could adversely affect the market price of our common stock."
    },
    {
      "status": "UNCHANGED",
      "current_title": "If our suppliers do not meet product or delivery requirements, we could have reduced revenues and earnings.",
      "prior_title": "If our suppliers do not meet product or delivery requirements, we could have reduced revenues and earnings.",
      "current_body": "If any of our suppliers were to cancel contracts or commitments or fail to meet the quality or delivery requirements needed to satisfy customer orders for our products, we could lose time-sensitive customer orders, have significantly decreased revenues and earnings and be subject to contractual penalties, which would have a material adverse effect on our business, results of operations and financial condition. In addition, we rely on contract manufacturers for certain of our products, and our ability to meet customer orders 16 16 Table of Contents Table of Contents Table of Contents for those products depends upon the timeliness and quality of the work performed by these subcontractors, over whom we do not exercise any control. To a certain extent, we are dependent upon the ability of our suppliers and contract manufacturers to help meet increased product or delivery requirements. It may be difficult for certain suppliers to meet delivery requirements in a period of rapid growth, therefore impacting our ability to meet our customers’ demands. Our suppliers are subject to trade regulations, including tariffs and export restrictions imposed by the United States Government and by the governments of other countries. These regulations could impact our suppliers’ ability to provide us with components for our products or could increase the price of those components. We rely on the financial strength of our suppliers. The loss of suppliers either as a result of financial viability, bankruptcy or otherwise could have a material adverse effect on our business, results of operations or financial condition."
    },
    {
      "status": "UNCHANGED",
      "current_title": "We may incur significant costs of complying with present and future environmental regulations and may incur significant liabilities if we fail to comply with such environmental regulations.",
      "prior_title": "We may incur significant costs of complying with present and future environmental regulations and may incur significant liabilities if we fail to comply with such environmental regulations.",
      "current_body": "We are subject to both domestic and international environmental regulations and statutory strict liability relating to the use, storage, discharge, site cleanup and disposal of hazardous chemicals used in our manufacturing processes. In addition, future regulations in response to global climate change may affect us, our suppliers, and our customers. Such regulations could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or both incurring additional compliance costs that are passed on to us. Future climate change regulations could result in decreased demand for 20 20 Table of Contents Table of Contents Table of Contents our products. If we fail to comply with present and future regulations, or are required to perform site remediation, we could be subject to future liabilities or cost, including penalties or the suspension of production. Present and future regulations may also: •restrict our ability to expand facilities; restrict our ability to expand facilities; •restrict our ability to ship certain products; restrict our ability to ship certain products; •require us to modify our operations logistics; require us to modify our operations logistics; •require us to acquire costly equipment; or require us to acquire costly equipment; or •require us to incur other significant costs and expenses. require us to incur other significant costs and expenses. Pursuant to present regulations and agreements, we are conducting groundwater and subsurface assessment and monitoring and are implementing remediation and corrective action plans for facilities located in Massachusetts and New Hampshire which are no longer conducting manufacturing operations. As of December 31, 2023, we have not incurred material costs as a result of the monitoring and remediation steps taken at the Massachusetts and New Hampshire sites. The directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (the “RoHS Directive”) and the directive on Waste Electrical and Electronic Equipment (the “WEEE Directive”) altered the form and manner in which electronic equipment is imported, sold and handled in the European Union. Other jurisdictions, such as China, have followed the European Union’s lead in enacting legislation with respect to hazardous substances and waste removal. Ensuring compliance with the RoHS Directive, the WEEE Directive and similar legislation in other jurisdictions, and integrating compliance activities with our suppliers and customers could result in additional costs and disruption to operations and logistics and thus, could have a negative impact on our business, operations or financial condition."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Performance Graph",
      "prior_title": "Performance Graph",
      "current_body": "The following graph compares the change in our cumulative total shareholder return in our common stock with (i) the Standard & Poor’s 500 Index and (ii) the Morningstar Global Semiconductor Equipment & Materials GR USD Industry Group. The comparison assumes $100.00 was invested on December 31, 2018 in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any. Historic stock price performance is not necessarily indicative of future price performance."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Convertible Debt",
      "prior_title": "Convertible Debt",
      "current_body": "We adopted Accounting Standards Update (“ASU”) ASU 2020-06 – “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” on January 1, 2022 using the modified retrospective method of adoption. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million. In accordance with ASU 2020-06, we account for a 27 27 Table of Contents Table of Contents Table of Contents convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Settled shares reduce the outstanding debt balance in an amount equal to the cash paid, but do not result in any gain or loss on extinguishment. We use the if-converted method in the diluted EPS calculation for convertible instruments."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Revenue Recognition",
      "prior_title": "Revenue Recognition",
      "current_body": "In accordance with ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), we recognize revenues, when or as control is transferred to a customer. Our determination of revenue requires judgment in the determination of performance obligations and allocation of the transaction price to performance obligations. We often sell bundled orders that include both product and services or multiple different products within the same order. We evaluate each of the deliverables to determine if it meets the definition of a performance obligation, which requires that it is capable of being distinct and distinct within the context of the contract. This 26 26 Table of Contents Table of Contents Table of Contents determination is based on an assessment of contractual rights of the contract and the ability of the performance obligation to perform on its own or with readily available resources. In bundled transactions we estimate the standalone selling price of each identified performance obligation and use that estimate to allocate the transaction price among said performance obligations. The estimated standalone selling price is determined using all information reasonably available to us, including standalone transactions, market information and other observable inputs."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Our business may suffer if we are unable to attract and retain key employees.",
      "prior_title": "Our business may suffer if we are unable to attract and retain key employees.",
      "current_body": "Competition for employees with skills we require is intense in the high technology industry. We expect intense competition for employees to continue in 2024. Our success will depend on our ability to attract and retain key technical employees. The loss of one or 17 17 Table of Contents Table of Contents Table of Contents more key or other employees, a decrease in our ability to attract additional qualified employees, or the delay in hiring key personnel could each have a material adverse effect on our business, results of operations or financial condition."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Definition and Limitations of Internal Control over Financial Reporting",
      "prior_title": "Definition and Limitations of Internal Control over Financial Reporting",
      "current_body": "A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in 38 38 Table of Contents Table of Contents Table of Contents accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate."
    },
    {
      "status": "UNCHANGED",
      "current_title": "The global supply shortage of electrical components and inflationary cost increases has impacted our ability to meet customer demand and could adversely affect our business and financial results.",
      "prior_title": "The global supply shortage of electrical components and inflationary cost increases has impacted our ability to meet customer demand and could adversely affect our business and financial results.",
      "current_body": "The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in 2023. As a result, we have experienced, and may experience in the future, increases in our lead times and costs for certain components for certain products and delays in the delivery of some orders placed by our customers. In addition, in 2023, inflationary pressures contributed to increased costs for product components and wage inflation, which had minimal impact on our cost of products, gross margin and profit for the year. Our supply chain team, and our suppliers, continue to manage numerous supply, production and logistics obstacles. In an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. However, if we are unable to secure manufacturing capacities from our current or new suppliers and contract manufacturers, on acceptable terms or at all, or successfully manage our purchase commitments and inventory for components, our ability to deliver our products to our customers in the desired quantities, at competitive prices or in a timely manner may be negatively impacted for 2024. Also, our suppliers and contract manufacturers have increased their prices, which increased our cost of products. We also have been, and may continue to attempt to, offset the effect of these inflationary pressures by increasing the prices of our products. However, we may not be fully able to pass additional costs on to our customers, which could have a negative impact on our results of operations and financial condition."
    },
    {
      "status": "UNCHANGED",
      "current_title": "We are subject to intense competition.",
      "prior_title": "We are subject to intense competition.",
      "current_body": "We face significant competition throughout the world in each of our reportable segments. Some of our competitors have substantial financial and other resources to pursue engineering, manufacturing, marketing and distribution of their products. In addition, we are subject to trade regulations imposed by the United States government, which may not impact some of our competitors. We also face competition from emerging Asian companies and internal development at several of our customers. Some of our competitors have introduced or announced new products with certain performance characteristics that may be considered equal or superior to those we currently offer. We expect our competitors to continue to improve the performance of their current products and to introduce new products or new technologies that provide improved cost of ownership and performance characteristics. New product introductions by competitors could cause a decline in revenues or loss of market acceptance of our products."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Preparation of Financial Statements and Use of Estimates",
      "prior_title": "Preparation of Financial Statements and Use of Estimates",
      "current_body": "The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, accounts receivable, income taxes, deferred tax assets and liabilities, pensions, warranties, contingent consideration liabilities, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Annual Report on Form 10-K. These estimates may change, as new events occur and additional information is obtained. Actual results may differ significantly from these estimates under different assumptions or conditions. Revenue Recognition Revenue from Contracts with Customers In accordance with ASC 606, Teradyne recognizes revenues, when or as control is transferred to a customer. Teradyne’s determination of revenue is dependent upon a five-step process outlined below. •Teradyne accounts for a contract with a customer when there is written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. •Teradyne periodically enters into contracts with customers in which a customer may purchase a combination of goods and services, such as products with extended warranty obligations. Teradyne determines performance obligations by assessing whether the products or services are distinct from the other elements of the contract. In order to be distinct, the product or service must perform either on its own or with readily available resources and must be separate within the context of the contract. 45 Table of Contents •Teradyne determines the transaction price to be the amount of consideration to which Teradyne expects to be entitled to, which is generally at contractually stated prices.•Transaction price is allocated to each individual performance obligation based on the standalone selling price of that performance obligation. Teradyne uses standalone transactions when available to value each performance obligation. If standalone transactions are not available, Teradyne will estimate the standalone selling price through market assessments or cost plus a reasonable margin analysis. Any discounts from standalone selling price are spread proportionally to each performance obligation. •In order to determine the appropriate timing for revenue recognition, Teradyne first determines if the transaction meets any of three criteria for over time recognition. If the transaction meets the criteria for over time recognition, Teradyne recognizes revenue as the good or service is delivered. Teradyne uses input variables such as hours or months utilized or costs incurred to determine the amount of revenue to recognize in a given period. Input variables are used as they best align consumption with benefit to the customer. For transactions that do not meet the criteria for over time recognition, Teradyne will recognize revenue at a point in time based on an assessment of the five criteria for transfer of control. Teradyne has concluded that revenue should be recognized when shipped or delivered based on contractual terms. Typically, acceptance of Teradyne’s products and services is a formality as Teradyne delivers similar systems, instruments and robots to standard specifications. In cases where acceptance is not deemed a formality, Teradyne will defer revenue recognition until customer acceptance. Performance Obligations Products Teradyne products consist primarily of semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage test systems and instruments, circuit-board test and inspection systems and instruments, wireless test systems and robotics products. Teradyne’s hardware is typically recognized at a point in time upon transfer of control to the customer. Services Teradyne services consist of extended warranties, training and application support, service agreements, post contract customer support (“PCS”) and replacement parts. Each service is recognized based on relative standalone selling price. Extended warranty, training and support, service agreements and PCS are recognized over time based on the period of service. Replacement parts are recognized at a point in time upon transfer of control to the customer. Teradyne does not allow customer returns or provide refunds to customers for any products or services. Teradyne products include a standard 12-month warranty. This warranty is not considered a distinct performance obligation because it does not obligate Teradyne to provide a separate service to the customer and it cannot be purchased separately. Cost related to warranties are included in cost of revenues when product revenues are recognized. As of December 31, 2023 and 2022, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2023 2022 (in thousands) Maintenance, service and training $ 66,458 $ 78,089 Customer advances, undelivered elements and other 35,731 59,147 Extended warranty 34,897 56,180 Total deferred revenue and customer advances $ 137,086 $ 193,416"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Opinions on the Financial Statements and Internal Control over Financial Reporting",
      "prior_title": "Opinions on the Financial Statements and Internal Control over Financial Reporting",
      "current_body": "We have audited the accompanying consolidated balance sheets of Teradyne, Inc. and its subsidiaries (the “Company”) as of December 31, 2023 and 2022, and the related consolidated statements of operations, comprehensive income, convertible common shares and shareholders' equity and cash flows for each of the three years in the period ended December 31, 2023, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2023 appearing under Item 15(c) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Changes in Accounting Principles As discussed in Note B to the consolidated financial statements, the Company changed the manner in which it accounts for convertible debt in 2022."
    },
    {
      "status": "UNCHANGED",
      "current_title": "We may not fully realize the benefits of our acquisitions or strategic alliances.",
      "prior_title": "We may not fully realize the benefits of our acquisitions or strategic alliances.",
      "current_body": "In June 2015, we acquired Universal Robots, in 2018, we acquired Energid and MiR and, in 2019, we acquired Lemsys and AutoGuide. In November 2023, we announced entering into strategic partnership agreement with Technoprobe which included 12 12 Table of Contents Table of Contents Table of Contents Teradyne acquiring 10% of the equity in Technoprobe. We may not be able to realize the benefits of acquiring or successfully growing these businesses. We may continue to acquire additional businesses, form strategic alliances, or create joint ventures with third parties that we believe will complement or augment our existing businesses. We may not be able to realize the expected synergies and cost savings from the integration with our existing operations of other businesses or technologies that we may acquire. In addition, the integration process for our acquisitions may be complex, costly and time consuming and include unanticipated issues, expenses, and liabilities. We may have difficulty in developing, manufacturing, and marketing the products of a newly acquired company in a manner that enhances the performance of our combined businesses or product lines and allows us to realize value from expected synergies. Following an acquisition, we may not achieve the revenue or net income levels that justify the acquisition. Acquisitions may also result in one-time charges (such as acquisition-related expenses, write-offs or restructuring charges) or in the future, impairment of goodwill or acquired intangible assets, or adjustments to contingent consideration liabilities that adversely affect our operating results. Additionally, we may fund acquisitions of new businesses, strategic alliances, or joint ventures by utilizing our cash, incurring debt, issuing shares of our common stock, or by other means. Additionally, we may face restrictions pursuant to the terms of an acquisition or strategic alliance agreement, such as the three year restriction on the transfer or disposition of the Technoprobe shares upon closing of the agreement, subject to certain early termination events."
    },
    {
      "status": "UNCHANGED",
      "current_title": "If we fail to develop new technologies to adapt to our customers’ needs or if our customers fail to accept our new products, our revenues will be adversely affected.",
      "prior_title": "If we fail to develop new technologies to adapt to our customers’ needs and if our customers fail to accept our new products, our revenues will be adversely affected.",
      "current_body": "We believe that our technological position depends primarily on the technical competence and creative ability of our engineers. In a rapidly evolving market, such as ours, the development or acquisition of new technologies, commercialization of those technologies into products and market acceptance and customer demand for those products are critical to our success. Successful product development or acquisition, introduction and acceptance depend upon a number of factors, including: •new product selection; new product selection; •ability to meet customer requirements including with respect to safety and cyber security; ability to meet customer requirements including with respect to safety and cyber security; •development of competitive products by competitors; development of competitive products by competitors; •timely and efficient completion of product design; timely and efficient completion of product design; •timely and efficient implementation of manufacturing and manufacturing processes; timely and efficient implementation of manufacturing and manufacturing processes; •timely remediation of product performance issues, if any, identified during testing; timely remediation of product performance issues, if any, identified during testing; •assembly processes and product performance at customer locations; assembly processes and product performance at customer locations; •differentiation of our products from our competitors' products; differentiation of our products from our competitors' products; •management of customer expectations concerning product capabilities and product life cycles; management of customer expectations concerning product capabilities and product life cycles; •transition of customers to new product platforms; transition of customers to new product platforms; •compliance with product safety regulations; compliance with product safety regulations; •ability to protect products from cyber attacks when used by our customers; ability to protect products from cyber attacks when used by our customers; •ability to attract and retain technical talent; and ability to attract and retain technical talent; and •innovation that does not infringe on the intellectual property rights of third parties. innovation that does not infringe on the intellectual property rights of third parties."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Net Income per Common Share",
      "prior_title": "Net Income per Common Share",
      "current_body": "Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne is required to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, Teradyne is accounting for the conversion spread using the treasury stock method. Comprehensive Income Comprehensive income includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities, unrealized gains and losses on cash flow hedge and foreign currency translation adjustment."
    }
  ]
}