Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

S. SEGMENT INFORMATION

Teradyne has four reportable segments (Semiconductor Test, System Test, Wireless Test and Robotics). Each of the reportable segments represents an individual operating segment.

The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The System Test segment includes operations related to the design, manufacturing and marketing of products and services for storage and system level test, defense/aerospace instrumentation test, and circuit-board test. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. Each operating segment has a segment manager who is accountable to and maintains regular contract with Teradyne’s chief operating decision maker (Teradyne’s chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment.

Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments are the same as those described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2023.

Segment information for the three months ended March 31, 2024 and April 2, 2023 is as follows:

	Semiconductor Test		System Test		Robotics			Wireless Test			Segment Total		Corporate and Eliminations			Consolidated
	(in thousands)
Three Months Ended March 31, 2024
Revenues	$	412,254	$	75,322	$	87,654		$	24,589		$	599,819	$	—		$	599,819
Income (loss) before income taxes (1)(2)		79,414		18,391		(14,047	)		(893	)	$	82,865		(9,963	)	$	72,902
Total assets (3)		1,348,829		181,803		721,318			69,519		$	2,321,469		1,089,251		$	3,410,720
Three Months Ended April 2, 2023
Revenues	$	415,009	$	74,631	$	89,214		$	38,675		$	617,529	$	—		$	617,529
Income (loss) before income taxes (1)(2)		96,185		15,275		(18,490	)		9,352		$	102,322		(5,238	)	$	97,084
Total assets (3)		1,386,851		173,669		676,092			87,875		$	2,324,487		1,058,920		$	3,383,407

(1)Included in Corporate and Eliminations are: interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, severance charges, pension, acquisition and divestiture related fees, and an expense for the modification of outstanding equity awards.

(2)Included in income (loss) before taxes are charges related to restructuring and other, expense for the modification of outstanding equity awards, and inventory charges.

(3)Total assets are attributable to each segment. Semiconductor Test includes $33.9 million of total assets classified as assets held for sale. See Note E: "Assets held for sale" for additional information. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets.

Included in each segment are charges and credits in the following line items in the statements of operations:

	For the Three Months  Ended
	March 31, 2024		April 2, 2023
	(in thousands)
Semiconductor Test:
Cost of revenues—inventory charge	$	4,956	$	3,768
Restructuring and other—employee severance		983		794
System Test:
Cost of revenues—inventory charge	$	—	$	675
Robotics:
Cost of revenues—inventory charge	$	—	$	782
Corporate and Eliminations:
Restructuring and other—acquisition & divestiture related expenses		2,214		—
Selling and administrative —equity modification		1,469		5,889
Restructuring and other—employee severance	$	—	$	659