Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Teradyne Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. Federal	58,063)	86,692)	58,218)	58,678)	19,297)
Non-U.S.	54,037)	74,204)	105,153)	75,193)	52,810)
State	2,362)	2,681)	300)	(1,315)	(4,347)
Current	114,462)	163,577)	163,671)	132,556)	67,760)
U.S. Federal	(27,459)	(36,739)	(15,106)	(12,604)	(4,522)
Non-U.S.	(8,584)	1,232)	(4,300)	(5,127)	(8,007)
State	(1,599)	(3,186)	2,101)	2,043)	3,073)
Deferred	(37,642)	(38,693)	(17,305)	(15,688)	(9,456)
Provision for income taxes	76,820)	124,884)	146,366)	116,868)	58,304)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Teradyne Inc. current decreased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Teradyne Inc. deferred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Teradyne Inc. provision for income taxes decreased from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. statutory federal tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign taxes	2.50%	-1.90%	-4.50%	-5.60%	-4.00%
Non-deductible officers’ compensation	1.10%	1.30%	0.80%	0.50%	0.00%
U.S. global intangible low-taxed income	0.80%	1.20%	0.60%	5.70%	6.20%
State income taxes, net of federal tax benefit	0.10%	-0.10%	0.20%	0.30%	0.50%
U.S. research and development credit	-4.20%	-1.80%	-1.40%	-1.30%	-1.80%
U.S. foreign derived intangible income	-3.90%	-3.10%	-2.30%	-2.20%	-2.60%
Foreign tax credits	-3.30%	-1.00%	-0.50%	-4.80%	-5.90%
Equity compensation	-0.40%	-1.10%	-0.90%	-0.60%	-0.70%
U.S. transition tax	0.00%	0.00%	0.00%	0.00%	1.90%
Other, net	0.90%	0.40%	-0.40%	0.00%	-3.50%
Effective tax rate	14.60%	14.90%	12.60%	13.00%	11.10%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Teradyne Inc. effective tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Teradyne Inc., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Tax credits	112,571)	105,503)	98,378)	87,595)	79,480)
Research and development	82,571)	47,760)	—)	—)	—)
Accruals	25,644)	30,747)	41,459)	33,156)	25,424)
Pension liabilities	24,997)	21,335)	28,722)	28,348)	24,459)
Lease liabilities	21,167)	18,679)	16,484)	12,627)	—)
Inventory valuations	19,289)	22,554)	20,991)	18,427)	18,572)
Deferred revenue	13,807)	14,909)	11,164)	9,235)	7,622)
Equity compensation	7,179)	6,578)	6,630)	6,543)	7,042)
Vacation accrual	6,096)	5,856)	6,050)	5,890)	4,768)
Net operating loss carryforwards	5,737)	1,857)	1,721)	1,823)	2,705)
Investment impairment	3,292)	3,292)	3,292)	3,292)	3,292)
Intangible assets	2,323)	350)	—)	—)	—)
Marketable securities	128)	2,283)	—)	—)	—)
Other	953)	2,520)	774)	626)	1,472)
Gross deferred tax assets	325,754)	284,223)	235,665)	207,562)	174,836)
Valuation allowance	(109,251)	(103,807)	(97,170)	(84,962)	(77,177)
Deferred tax assets	216,503)	180,416)	138,495)	122,600)	97,659)
Right of use assets	(19,016)	(16,607)	(14,738)	(10,688)	—)
Depreciation	(16,681)	(19,078)	(10,691)	(14,525)	(18,238)
Contingent consideration	(5,214)	(5,214)	(5,214)	(3,515)	—)
Intangible assets	—)	—)	(8,531)	(12,726)	(16,705)
Marketable securities	—)	—)	(3,220)	(3,344)	(1,601)
Other	—)	—)	—)	(710)	—)
Deferred tax liabilities	(40,911)	(40,899)	(42,394)	(45,508)	(36,544)
Net deferred assets (liabilities)	175,592)	139,517)	96,101)	77,092)	61,115)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Teradyne Inc. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Teradyne Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Teradyne Inc. net deferred assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	175,775)	142,784)	102,428)	87,913)	75,185)
	Deferred tax liabilities	183)	3,267)	6,327)	10,821)	14,070)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Teradyne Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Teradyne Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Less: Noncurrent deferred tax assets, net	175,775)	142,784)	102,428)	87,913)	75,185)
Total assets (adjusted)	3,311,049)	3,358,468)	3,706,997)	3,564,433)	2,711,829)
Adjustment to Total Liabilities
Total liabilities (as reported)	960,927)	1,049,958)	1,245,469)	1,441,541)	1,306,856)
Less: Noncurrent deferred tax liabilities, net	183)	3,267)	6,327)	10,821)	14,070)
Total liabilities (adjusted)	960,744)	1,046,691)	1,239,142)	1,430,720)	1,292,786)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Less: Net deferred tax assets (liabilities)	175,592)	139,517)	96,101)	77,092)	61,115)
Shareholders’ equity (adjusted)	2,350,305)	2,311,777)	2,466,343)	2,129,926)	1,419,043)
Adjustment to Net Income
Net income (as reported)	448,752)	715,501)	1,014,589)	784,147)	467,468)
Add: Deferred income tax expense (benefit)	(37,642)	(38,693)	(17,305)	(15,688)	(9,456)
Net income (adjusted)	411,110)	676,808)	997,284)	768,459)	458,012)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Teradyne Inc., Financial Data: Reported vs. Adjusted

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Teradyne Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	16.77%	22.68%	27.40%	25.12%	20.37%
Adjusted net profit margin	15.36%	21.45%	26.93%	24.62%	19.96%
Total Asset Turnover
Reported total asset turnover	0.77	0.90	0.97	0.85	0.82
Adjusted total asset turnover	0.81	0.94	1.00	0.88	0.85
Financial Leverage
Reported financial leverage	1.38	1.43	1.49	1.65	1.88
Adjusted financial leverage	1.41	1.45	1.50	1.67	1.91
Return on Equity (ROE)
Reported ROE	17.77%	29.19%	39.59%	35.53%	31.58%
Adjusted ROE	17.49%	29.28%	40.44%	36.08%	32.28%
Return on Assets (ROA)
Reported ROA	12.87%	20.44%	26.63%	21.47%	16.77%
Adjusted ROA	12.42%	20.15%	26.90%	21.56%	16.89%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Teradyne Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Teradyne Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Teradyne Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Teradyne Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Teradyne Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Profitability Ratio
Net profit margin¹	16.77%	22.68%	27.40%	25.12%	20.37%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	411,110)	676,808)	997,284)	768,459)	458,012)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Profitability Ratio
Adjusted net profit margin²	15.36%	21.45%	26.93%	24.62%	19.96%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 448,752 ÷ 2,676,298 = 16.77%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 411,110 ÷ 2,676,298 = 15.36%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Teradyne Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Activity Ratio
Total asset turnover¹	0.77	0.90	0.97	0.85	0.82
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenues	2,676,298)	3,155,045)	3,702,881)	3,121,469)	2,294,965)
Adjusted total assets	3,311,049)	3,358,468)	3,706,997)	3,564,433)	2,711,829)
Activity Ratio
Adjusted total asset turnover²	0.81	0.94	1.00	0.88	0.85

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 2,676,298 ÷ 3,486,824 = 0.77

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 2,676,298 ÷ 3,311,049 = 0.81

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Teradyne Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Shareholders’ equity	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Solvency Ratio
Financial leverage¹	1.38	1.43	1.49	1.65	1.88
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	3,311,049)	3,358,468)	3,706,997)	3,564,433)	2,711,829)
Adjusted shareholders’ equity	2,350,305)	2,311,777)	2,466,343)	2,129,926)	1,419,043)
Solvency Ratio
Adjusted financial leverage²	1.41	1.45	1.50	1.67	1.91

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 3,486,824 ÷ 2,525,897 = 1.38

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 3,311,049 ÷ 2,350,305 = 1.41

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Teradyne Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Shareholders’ equity	2,525,897)	2,451,294)	2,562,444)	2,207,018)	1,480,158)
Profitability Ratio
ROE¹	17.77%	29.19%	39.59%	35.53%	31.58%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	411,110)	676,808)	997,284)	768,459)	458,012)
Adjusted shareholders’ equity	2,350,305)	2,311,777)	2,466,343)	2,129,926)	1,419,043)
Profitability Ratio
Adjusted ROE²	17.49%	29.28%	40.44%	36.08%	32.28%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 448,752 ÷ 2,525,897 = 17.77%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 411,110 ÷ 2,350,305 = 17.49%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Teradyne Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	448,752)	715,501)	1,014,589)	784,147)	467,468)
Total assets	3,486,824)	3,501,252)	3,809,425)	3,652,346)	2,787,014)
Profitability Ratio
ROA¹	12.87%	20.44%	26.63%	21.47%	16.77%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	411,110)	676,808)	997,284)	768,459)	458,012)
Adjusted total assets	3,311,049)	3,358,468)	3,706,997)	3,564,433)	2,711,829)
Profitability Ratio
Adjusted ROA²	12.42%	20.15%	26.90%	21.56%	16.89%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 448,752 ÷ 3,486,824 = 12.87%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 411,110 ÷ 3,311,049 = 12.42%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Teradyne Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Teradyne Inc. (NASDAQ:TER)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Teradyne Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Teradyne Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)