v3.25.2
Retirement Plans
 6 Months Ended
Jun. 29, 2025
Retirement Benefits [Abstract]  
Retirement Plans

R. 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 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 these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of the U.S. qualified pension plan 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 the six months ended June 29, 2025, and June 30, 2024, Teradyne contributed $1.6 million and $1.6 million, respectively, to the U.S. supplemental executive defined benefit pension plan, and $3.3 million and $0.5 million, respectively, to certain qualified pension plans for non-U.S. subsidiaries.

For the three and six months ended June 29, 2025, and June 30, 2024, Teradyne’s net periodic pension cost was comprised of the following:

 

 

 

For the Three Months Ended

 

 

 

June 29, 2025

 

 

June 30, 2024

 

 

 

United
States

 

 

Foreign

 

 

United
States

 

 

Foreign

 

 

 

(in thousands)

 

Service cost

 

$

96

 

 

$

150

 

 

$

217

 

 

$

114

 

Interest cost

 

 

1,165

 

 

 

301

 

 

 

1,646

 

 

 

243

 

Expected return on plan assets

 

 

(665

)

 

 

(25

)

 

 

(1,265

)

 

 

(18

)

Net actuarial loss (gain)

 

 

41

 

 

 

—

 

 

 

111

 

 

 

(242

)

Settlement loss (gain)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(24

)

Total net periodic pension cost

 

$

637

 

 

$

426

 

 

$

709

 

 

$

73

 

 

 

 

For the Six Months Ended

 

 

 

June 29, 2025

 

 

June 30, 2024

 

 

 

United
States

 

 

Foreign

 

 

United
States

 

 

Foreign

 

 

 

(in thousands)

 

Service cost

 

$

309

 

 

$

289

 

 

$

448

 

 

$

231

 

Interest cost

 

 

2,873

 

 

 

595

 

 

 

3,293

 

 

 

489

 

Expected return on plan assets

 

 

(1,981

)

 

 

(50

)

 

 

(2,533

)

 

 

(34

)

Net actuarial loss (gain)

 

 

41

 

 

 

—

 

 

 

111

 

 

 

(242

)

Settlement loss (gain)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(24

)

Total net periodic pension cost

 

$

1,242

 

 

$

834

 

 

$

1,319

 

 

$

420

 

 

Postretirement Benefit Plan

In addition to receiving pension benefits, Teradyne employees in the United States who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits and the existing benefit obligation relates primarily to those employees. During the six months ended June 29, 2025, Teradyne recorded special termination benefit charges associated with a voluntary early retirement program.

For the three and six months ended June 29, 2025, and June 30, 2024, Teradyne’s net periodic postretirement benefit cost was comprised of the following:

 

 

 

For the Three Months
 Ended

 

 

For the Six Months
 Ended

 

 

 

June 29,
2025

 

 

June 30,
2024

 

 

June 29,
2025

 

 

June 30,
2024

 

 

 

(in thousands)

 

 

(in thousands)

 

Service cost

 

$

8

 

 

$

9

 

 

$

18

 

 

$

18

 

Interest cost

 

 

80

 

 

 

72

 

 

 

153

 

 

 

145

 

Amortization of prior service credit

 

 

(2

)

 

 

(2

)

 

 

(4

)

 

 

(4

)

Special termination benefits

 

 

—

 

 

 

170

 

 

 

684

 

 

 

462

 

Net actuarial loss (gain)

 

 

87

 

 

 

(94

)

 

 

87

 

 

 

(94

)

Total net periodic postretirement benefit cost

 

$

173

 

 

$

155

 

 

$

938

 

 

$

527