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Segment Information
3 Months Ended
Apr. 02, 2017
Segment Information

R. SEGMENT INFORMATION

Teradyne has four operating segments (Semiconductor Test, System Test, Industrial Automation 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 System Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace instrumentation test, storage test and circuit-board test. The Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robots. The Wireless Test segment includes operations related to the 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 (loss) before income taxes. The accounting policies of the business segments in effect are described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2016.

Segment information for the three months ended April 2, 2017 and April 3, 2016 is as follows:

 

     Semiconductor
Test
     System
Test
    Industrial
Automation
    Wireless
Test
    Corporate
and
Eliminations
    Consolidated  
     (in thousands)  

Three Months Ended April 2, 2017

             

Revenues

   $ 355,528      $ 39,845     $ 36,272     $ 25,268     $ —       $ 456,913  

Income (loss) before income taxes (1)(2)

     97,966        (2,759     (2,571     1,532       (2,152     92,016  

Total assets (3)

     740,334        106,754       331,016       61,356       1,602,820       2,842,280  

Three Months Ended April 3, 2016

             

Revenues

   $ 340,264      $ 53,670     $ 16,746     $ 20,314     $ —       $ 430,994  

Income (loss) before income taxes (1)(2)

     73,254        9,492       (7,168     (20,140     1,754       57,192  

Total assets (3)

     664,555        90,695       350,589       408,466       1,034,669       2,548,974  

 

(1) Interest income, interest expense, contingent consideration adjustments, pension and post retirement plans actuarial gains and other income (expense) are included in Corporate and Eliminations.
(2) Included in the income (loss) before income taxes for each of the segments are charges and credits related to inventory and other.
(3) Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets.

 

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

 

     For the Three Months
Ended
 
     April 2,      April 3,  
     2017      2016  
     (in thousands)  

Cost of revenues—inventory charge

   $ 1,319      $ 3,685  

Restructuring and other

     (265      414  

Included in the System Test segment are charges in the following line item in the statements of operations:

 

     For the Three Months
Ended
 
     April 2,      April 3,  
     2017      2016  
     (in thousands)  

Cost of revenues—inventory charge

   $ 885      $ —    

Included in the Industrial Automation segment are charges in the following line item in the statements of operations:

 

     For the Three Months
Ended
 
     April 2,      April 3,  
     2017      2016  
     (in thousands)  

Restructuring and other

   $ 624      $ —    

Included in the Wireless Test segment are charges in the following line items in the statements of operations:

 

     For the Three Months
Ended
 
     April 2,      April 3,  
     2017      2016  
     (in thousands)  

Restructuring and other—lease impairment

   $ 1,313      $ —    

Cost of revenues—inventory charge

     522        605  

Included in Corporate and Eliminations are charges in the following line items in the statements of operations:

 

     For the Three Months
Ended
 
     April 2,      April 3,  
     2017      2016  
     (in thousands)  

Restructuring and other—Universal Robots contingent consideration adjustment

   $ 634      $ 1,173  

Restructuring and other

     205        —