Segment Information

3 Months Ended

Apr. 01, 2012

Segment Information [Abstract]

Segment Information

P. Segment Information

Teradyne has three operating segments (Semiconductor Test, Systems Test Group and Wireless Test), which are its reportable segments. 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 design, manufacturing and marketing of products and services for military/aerospace instrumentation test, storage test and circuit-board test. The Wireless Test segment includes operations related to design, manufacturing and marketing of wireless test products and services. Each operating segment has a segment manager who is directly accountable to and maintains regular contact 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 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, 2011. Segment information is as follows:

	Semiconductor Test		Systems Test Group		Wireless Test			Corporate And Eliminations			Consolidated
	(in thousands)
Three months ended April 1, 2012:
Net revenues	$	267,588	$	97,752	$	31,328		$	—		$	396,668
Income (loss) from continuing operations before income taxes (1)(2)		34,998		21,978		(12,312	)		(3,420	)		41,244
Three months ended April 3, 2011:
Net revenues	$	319,250	$	57,911	$	—		$	—		$	377,161
Income (loss) from continuing operations before income taxes (1)(2)		76,926		5,491		—			(6,993	)		75,424

(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 ended April 1, 2012 and April 3, 2011 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
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	212	$	4,442
Restructuring and other, net		—		891
Total	$	212	$	5,333

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

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—provision for excess and obsolete inventory	$	889	$	185
Restructuring and other, net		—		(246	)
Total	$	889	$	(61	)

Included in the Wireless Test segment are charges and credits in the following accounts:

	For the Three Months Ended
	April 1, 2012		April 3, 2011
	(in thousands)
Cost of revenues—inventory step-up	$	4,871	$	—
Cost of revenues—provision for excess and obsolete inventory		473		—
Total	$	5,344	$	—

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

	For the Three Months Ended
	April 1, 2012			April 3, 2011
	(in thousands)
Restructuring and other, net	$	(1,825	)	$	(232	)
Total	$	(1,825	)	$	(232	)