Segment Information |
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:
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Semiconductor
Test |
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Industrial
Automation |
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System
Test |
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Wireless
Test |
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Corporate
and
Other |
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Consolidated |
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(in thousands) |
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Three Months Ended September 30, 2018
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Revenues
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$ |
417,297 |
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$ |
65,913 |
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$ |
49,606 |
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$ |
34,304 |
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$ |
(272 |
) |
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$ |
566,848 |
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Income (loss) before income taxes (1)(2)
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126,638 |
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940 |
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9,056 |
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7,843 |
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(3,633 |
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140,844 |
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Total assets (3)
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709,616 |
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617,741 |
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83,160 |
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79,986 |
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1,391,984 |
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2,882,487 |
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Three Months Ended October 1, 2017
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Revenues
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$ |
396,881 |
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$ |
40,063 |
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$ |
35,569 |
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$ |
30,865 |
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$ |
— |
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$ |
503,378 |
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Income (loss) before income taxes (1)(2)
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116,836 |
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3,373 |
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(3,344 |
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7,461 |
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3,111 |
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127,437 |
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Total assets (3)
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598,925 |
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508,943 |
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100,083 |
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61,206 |
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1,820,170 |
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3,089,327 |
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Nine Months Ended September 30, 2018
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Revenues
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$ |
1,150,712 |
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$ |
176,803 |
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$ |
162,308 |
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$ |
92,023 |
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$ |
(602 |
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$ |
1,581,244 |
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Income (loss) before income taxes (1)(2)
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305,876 |
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(1,198 |
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35,296 |
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18,615 |
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(1,914 |
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356,675 |
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Total assets (3)
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709,616 |
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617,741 |
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83,160 |
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79,986 |
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1,391,984 |
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2,882,487 |
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Nine Months Ended October 1, 2017
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Revenues
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$ |
1,345,560 |
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$ |
115,672 |
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$ |
112,147 |
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$ |
83,812 |
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$ |
— |
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$ |
1,657,191 |
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Income (loss) before income taxes (1)(2)
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426,081 |
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(279 |
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(11,795 |
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13,508 |
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(1,186 |
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426,329 |
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Total assets (3)
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598,925 |
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508,943 |
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100,083 |
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61,206 |
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1,820,170 |
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3,089,327 |
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(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.
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(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.
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(3) |
Total business assets are directly attributable to
each business. Corporate assets consist of cash and cash
equivalents, marketable securities and certain other assets.
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Included in the Semiconductor Test segment are charges in the
following line items in the statements of operations:
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For the Three Months
Ended |
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For the Nine Months
Ended |
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September 30,
2018 |
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October 1,
2017 |
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September 30,
2018 |
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October 1,
2017 |
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(in thousands) |
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Cost of revenues—inventory charge
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$ |
2,071 |
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$ |
743 |
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$ |
5,851 |
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$ |
3,686 |
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Restructuring and other—employee severance
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1,716 |
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375 |
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7,657 |
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242 |
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Included in the System Test segment are charges in the following
line item in the statements of operations:
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For the Three Months
Ended |
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For the Nine Months
Ended |
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September 30,
2018 |
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October 1,
2017 |
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September 30,
2018 |
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October 1,
2017 |
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(in thousands) |
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Cost of revenues—inventory charge
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$ |
237 |
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$ |
251 |
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$ |
812 |
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$ |
1,609 |
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Included in the Industrial Automation segment are charges in the
following line items in the statements of operations:
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For the Three Months
Ended |
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For the Nine Months
Ended |
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September 30,
2018 |
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October 1,
2017 |
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September 30,
2018 |
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October 1,
2017 |
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(in thousands) |
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Restructuring and other—acquisition related expenses and
compensation
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$ |
811 |
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$ |
— |
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$ |
811 |
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$ |
— |
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Cost of revenues—inventory charge
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323 |
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130 |
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680 |
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130 |
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Restructuring and other—employee severance
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— |
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206 |
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288 |
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1,150 |
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Included in the Wireless Test segment are charges and credits in
the following line items in the statements of operations:
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For the Three Months
Ended |
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For the Nine Months
Ended |
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September 30,
2018 |
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October 1,
2017 |
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September 30,
2018 |
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October 1,
2017 |
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(in thousands) |
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Cost of revenues—inventory charge
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$ |
716 |
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$ |
735 |
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$ |
2,179 |
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$ |
1,729 |
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Restructuring and other—lease impairment
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— |
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(393 |
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— |
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900 |
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Included in Corporate and Other are charges and credits in the
following line items in the statements of operations:
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For the Three Months
Ended |
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For the Nine Months
Ended |
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September 30,
2018 |
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October 1,
2017 |
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September 30,
2018 |
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October 1,
2017 |
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(in thousands) |
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Restructuring and other—Universal Robots contingent
consideration adjustment
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$ |
(768 |
) |
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$ |
(286 |
) |
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$ |
(9,236 |
) |
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$ |
1,847 |
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Restructuring and other—acquisition related expenses
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— |
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— |
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3,318 |
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— |
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Restructuring and other
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— |
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— |
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872 |
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— |
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Restructuring and other—property insurance recovery
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— |
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(5,064 |
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— |
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(5,064 |
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Restructuring and other—expenses related to Japan earthquake
and impairment of fixed assets
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— |
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755 |
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— |
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755 |
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Restructuring and other—employee severance
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— |
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— |
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— |
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530 |
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