R. SEGMENT INFORMATION

Teradyne has four operating segments (Semiconductor Test, Industrial Automation, System Test 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 Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robots. 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 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 and six months ended July 2, 2017 and July 3, 2016 is as follows:


	Semiconductor Test		Industrial Automation			System Test			Wireless Test			Corporate and Eliminations			Consolidated
	(in thousands)
*Three Months Ended July 2, 2017*
Revenues	$	593,152	$	39,337		$	36,732		$	27,680		$	—		$	696,901
Income (loss) before income taxes (1)(2)		211,278		(1,081	)		(5,692	)		4,514			(2,142	)		206,877
Total assets (3)		766,395		349,023			108,083			62,900			1,743,824			3,030,225
*Three Months Ended July 3, 2016*
Revenues	$	435,323	$	25,102		$	48,940		$	22,427		$	—		$	531,792
Income (loss) before income taxes (1)(2)		121,163		(4,501	)		8,992			(356,505	)		34			(230,817	)
Total assets (3)		731,394		346,290			91,374			61,618			1,177,182			2,407,858
*Six Months Ended July 2, 2017*
Revenues	$	948,679	$	75,610		$	76,578		$	52,947		$	—		$	1,153,814
Income (loss) before income taxes (1)(2)		309,244		(3,652	)		(8,451	)		6,046			(4,294	)		298,893
Total assets (3)		766,395		349,023			108,083			62,900			1,743,824			3,030,225
*Six Months Ended July 3, 2016*
Revenues	$	775,588	$	41,848		$	102,610		$	42,741		$	—		$	962,787
Income (loss) before income taxes (1)(2)		194,417		(11,669	)		18,484			(376,645	)		1,788			(173,625	)
Total assets (3)		731,394		346,290			91,374			61,618			1,177,182			2,407,858

(1)	Interest income, interest expense, contingent consideration adjustments, pension and postretirement plan actuarial gains and other income (expense) are included in Corporate and Eliminations.

(2)	Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges, goodwill impairment charges and acquired intangible assets impairment charge.

(3)	Total business assets are 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				For the Six Months Ended
	July 2, 2017		July 3, 2016		July 2, 2017			July 3, 2016
	(in thousands)
Cost of revenues—inventory charge	$	1,624	$	2,234	$	2,943		$	5,919
Restructuring and other—employee severance		132		337		(133	)		751

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

For the Three Months
Ended

For the Six Months
Ended

July 2,
2017

July 3,
2016

July 2,
2017

July 3,
2016

(in thousands)

Restructuring and other—employee severance

321

—

945

—

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


	For the Three Months Ended				For the Six Months Ended
	July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
	(in thousands)
Cost of revenues—inventory charge	$	473	$	237	$	1,358	$	320

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


	For the Three Months Ended				For the Six Months Ended
	July 2, 2017		July 3, 2016		July 2, 2017		July 3, 2016
	(in thousands)
Cost of revenues—inventory charge	$	472	$	5,271	$	994	$	5,876
Restructuring and other—lease impairment		—		—		1,313		—
Goodwill impairment		—		254,946		—		254,946
Acquired intangible assets impairment		—		83,339		—		83,339
Restructuring and other—employee severance		—		967		—		967

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


	For the Three Months Ended					For the Six Months Ended
	July 2, 2017		July 3, 2016			July 2, 2017		July 3, 2016
	(in thousands)
Restructuring and other—Universal Robots contingent consideration adjustment	$	1,499	$	755		$	2,133	$	1,928
Restructuring and other—employee severance		325		—			530		—
Restructuring and other—impairment of fixed assets and expenses related to Japan earthquake		—		5,051			—		5,051
Restructuring and other—property insurance recovery and proceeds		—		(5,051	)		—		(5,051	)
Restructuring and other—AIT contingent consideration adjustment		—		550			—		550