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Segment Information
 9 Months Ended
Sep. 29, 2019
Segment Reporting [Abstract]  
Segment Information
U. 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, 2018, and Note B: “Accounting Policies” in this filing for any changes in the three and nine months ended September 29, 2019.
Segment information for the three and nine months ended September 29, 2019 and September 30, 2018 is as follows:
 
Semiconductor
Test
 
  
Industrial
Automation
 
  
System
Test
 
  
Wireless
Test
 
  
Corporate
and
Other
 
  
Consolidated
 
  
(in thousands)
 
Three Months Ended September 29, 2019
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Revenues
  $
397,737
    $
68,892
    $
73,305
    $
42,264
    $
(160
 )   $
582,038
 
Income (loss) before income taxes (1)(2)
   
116,633
     
(1,645
 )    
24,381
     
11,182
     
1,182
     
151,733
 
Total assets (3)
   
757,422
     
580,635
     
126,452
     
94,789
     
1,139,493
     
2,698,791
 
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
 
Nine Months Ended September 29, 2019
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Revenues
  $
1,113,489
    $
209,753
    $
204,934
    $
112,541
    $
(402
 )   $
1,640,315
 
Income (loss) before income taxes (1)(2)
   
291,037
     
(10,670
 )    
63,254
     
25,740
     
7,528
     
376,889
 
Total assets (3)
   
757,422
     
580,635
     
126,452
     
94,789
     
1,139,493
     
2,698,791
 
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
 
 
(1)
Included in 
Corporate and Other are: contingent consideration adjustments, severance charges, interest income and expense, net foreign exchange gains (losses), intercompany eliminations, acquisition related expenses and compensation, pension and postretirement plans actuarial losses and an expense for the modification of Teradyne’s former chief financial officer’s outstanding equity awards.
(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 each 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 29,
 
 
September 30,
 
 
September 29,
 
 
September 30,
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
(in thousands)
 
Semiconductor Test:
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues—inventory charge
 
$
1,867
 
 
$
2,071
 
 
$
5,319
 
 
$
5,851
 
Restructuring and other—employee severance
 
 
—  
 
 
 
1,716
 
 
 
1,009
 
 
 
7,657
 
Industrial Automation:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other—acquisition related expenses
 
$
—  
 
 
$
811
 
 
$
1,330
 
 
$
811
 
Restructuring and other—employee severance
 
 
—  
 
 
 
—  
 
 
 
604
 
 
 
—  
 
Cost of revenues—inventory charge
 
 
—  
 
 
 
—  
 
 
 
508
 
 
 
680
 
System Test:
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues—inventory charge
 
$
—  
 
 
$
—  
 
 
$
1,129
 
 
$
812
 
Wireless Test:
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues—inventory charge
 
$
724
 
 
$
716
 
 
$
1,892
 
 
$
2,179
 
Corporate and Other:
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and other—MiR contingent consideration adjustment
 
$
(7,759
)
 
$
—  
 
 
$
(16,427
)
 
$
—  
 
Selling and administrative – equity modification charge
 
 
2,108
 
 
 
—  
 
 
 
2,108
 
 
 
—  
 
Restructuring and other—acquisition related expenses and compensation
 
 
816
 
 
 
—  
 
 
 
928
 
 
 
3,318
 
Restructuring and other—Universal Robots contingent consideration adjustment
 
 
—  
 
 
 
(768
)
 
 
—  
 
 
 
(9,236
)