S. SEGMENT INFORMATION

Teradyne has four reportable segments (Semiconductor Test, System Test, Industrial Automation and Wireless Test). Each of the Semiconductor Test, System Test, and Wireless Test segments is also an individual operating segment. The Industrial Automation reportable segment consists of operating segments with discrete financial information, which have been combined into one reportable segment as they share similar economic characteristics, types of products, production processes, distribution channels, and currency risks. 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 robotic arms, autonomous mobile robots and advanced robotic control software. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services.

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, 2017, and Note B: “Accounting Policies” in this filing for any changes in the three and nine months ended September 30, 2018.

Segment information for the three and nine months ended September 30, 2018 and October 1, 2017 is as follows:


	Semiconductor Test		Industrial Automation			System Test			Wireless Test		Corporate and Other			Consolidated
	(in thousands)
*Three Months Ended September 30, 2018*
Revenues	$	417,297	$	65,913		$	49,606		$	34,304	$	(272	)	$	566,848
Income (loss) before income taxes (1)(2)		126,638		940			9,056			7,843		(3,633	)		140,844
Total assets (3)		709,616		617,741			83,160			79,986		1,391,984			2,882,487
*Three Months Ended October 1, 2017*
Revenues	$	396,881	$	40,063		$	35,569		$	30,865	$	—		$	503,378
Income (loss) before income taxes (1)(2)		116,836		3,373			(3,344	)		7,461		3,111			127,437
Total assets (3)		598,925		508,943			100,083			61,206		1,820,170			3,089,327
*Nine Months Ended September 30, 2018*
Revenues	$	1,150,712	$	176,803		$	162,308		$	92,023	$	(602	)	$	1,581,244
Income (loss) before income taxes (1)(2)		305,876		(1,198	)		35,296			18,615		(1,914	)		356,675
Total assets (3)		709,616		617,741			83,160			79,986		1,391,984			2,882,487
*Nine Months Ended October 1, 2017*
Revenues	$	1,345,560	$	115,672		$	112,147		$	83,812	$	—		$	1,657,191
Income (loss) before income taxes (1)(2)		426,081		(279	)		(11,795	)		13,508		(1,186	)		426,329
Total assets (3)		598,925		508,943			100,083			61,206		1,820,170			3,089,327

(1)	Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges.

(2)	Included in the income (loss) before income taxes for each of the segments are charges and credits related to restructuring and other and inventory charges.

(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 in the following line items in the statements of operations:


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
	(in thousands)
Cost of revenues—inventory charge	$	2,071	$	743	$	5,851	$	3,686
Restructuring and other—employee severance		1,716		375		7,657		242

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 Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
	(in thousands)
Cost of revenues—inventory charge	$	237	$	251	$	812	$	1,609

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


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
	(in thousands)
Restructuring and other—acquisition related expenses and compensation	$	811	$	—	$	811	$	—
Cost of revenues—inventory charge		323		130		680		130
Restructuring and other—employee severance		—		206		288		1,150

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


	For the Three Months Ended					For the Nine Months Ended
	September 30, 2018		October 1, 2017			September 30, 2018		October 1, 2017
	(in thousands)
Cost of revenues—inventory charge	$	716	$	735		$	2,179	$	1,729
Restructuring and other—lease impairment		—		(393	)		—		900

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


	For the Three Months Ended						For the Nine Months Ended
	September 30, 2018			October 1, 2017			September 30, 2018			October 1, 2017
	(in thousands)
Restructuring and other—Universal Robots contingent consideration adjustment	$	(768	)	$	(286	)	$	(9,236	)	$	1,847
Restructuring and other—acquisition related expenses		—			—			3,318			—
Restructuring and other		—			—			872			—
Restructuring and other—property insurance recovery		—			(5,064	)		—			(5,064	)
Restructuring and other—expenses related to Japan earthquake and impairment of fixed assets		—			755			—			755
Restructuring and other—employee severance		—			—			—			530