Hemiscrotal Bulge in an Otherwise Normal Neonate

A compressible groin swelling is the only abnormal feature after full-term gestation and unremarkable delivery. Your Dx?

This full-term male infant is the product of an unremarkable pregnancy and a normal spontaneous vaginal delivery. His physical exam is otherwise normal. The right-sided groin swelling shown below is soft and compressible. It is unclear whether the testicle is contained within the affected hemiscrotum.

 

What is the abnormality depicted above?