Segment Information

6 Months Ended

Jul. 03, 2011

Segment Information

Segment Information

P. Segment Information

Teradyne's two reportable segments are Semiconductor Test and Systems Test Group. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The Systems Test Group segment includes operations related to the design, manufacturing and marketing of products and services for military/aerospace instrumentation test, hard disk drive test and circuit-board test and inspection.

Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income 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, 2010. Segment information is as follows:

	Semiconductor Test		Systems Test Group			Corporate and Eliminations			Consolidated
	(in thousands)
Three months ended July 3, 2011:
Net revenues	$	343,096	$	67,423		$	—		$	410,519
Income (loss) from continuing operations before income taxes(1)(2)		92,477		9,125			(3,873	)		97,729
Three months ended July 4, 2010:
Net revenues	$	413,059	$	32,212		$	—		$	445,271
Income (loss) from continuing operations before income taxes(1)(2)		141,911		(5,845	)		(3,993	)		132,073
Six months ended July 3, 2011:
Net revenues	$	662,346	$	125,334		$	—		$	787,680
Income (loss) from continuing operations before income taxes(1)(2)		167,893		14,313			(10,867	)		171,339
Six months ended July 4, 2010:
Net revenues	$	702,736	$	61,873		$	—		$	764,609
Income (loss) from continuing operations before income taxes(1)(2)		206,997		(11,472	)		(9,523	)		186,002

(1) Interest income and interest expense and other are included in Corporate and Eliminations.

(2) Included in the income (loss) from continuing operations before income taxes for each of the segments are charges for the three months and six months ended July 3, 2011 and July 4, 2010 that include restructuring and other, net, and provision for excess and obsolete inventory, as follows:

Included in the Semiconductor Test segment are charges for the following:

	For the Three Months Ended				For the Six Months Ended
	July 3,   2011		July 4,   2010		July 3, 2011		July 4, 2010
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	1,500	$	—	$	5,942	$	496
Restructuring and other, net		1,279		—		2,170		1,082
Total	$	2,779	$	—	$	8,112	$	1,578

Included in the Systems Test Group segment are charges for the following:

	For the Three Months Ended				For the Six Months Ended
	July 3, 2011		July 4, 2010		July 3, 2011			July 4, 2010
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	216	$	276	$	401		$	958
Restructuring and other, net		—		408		(246	)		229
Total	$	216	$	684	$	155		$	1,187

Included in the Corporate and Eliminations segment are charges for the following:

	For the Three Months Ended					For the Six Months Ended
	July 3, 2011		July 4, 2010			July 3, 2011			July 4, 2010
	(in thousands)
Restructuring and other, net	$	—	$	(37	)	$	(232	)	$	(37	)
Total	$	—	$	(37	)	$	(232	)	$	(37	)