Segment Information

3 Months Ended

Mar. 29, 2020

. 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, 2019.

Segment information for the three months ended March 29, 2020 and March 31, 2019 is as follows:


	Semiconductor Test		System Test		Industrial Automation			Wireless Test		Corporate and Other			Consolidated
	(in thousands)
Three Months Ended March 29, 2020
Revenues	$	484,489	$	116,076	$	60,305		$	43,485	$	—		$	704,355
Income (loss) before taxes (1)(2)		153,816		48,407		(15,335	)		10,220		(39	)		197,069
Total assets (3)		921,108		137,056		643,011			106,400		1,012,813			2,820,388
Three Months Ended March 31, 2019
Revenues	$	340,853	$	58,220	$	66,136		$	29,041	$	(151	)	$	494,099
Income ( loss ) before taxes (1)(2)		83,049		15,340		(5,295	)		3,628		(2,743	)		93,979
Total assets (3)		770,967		98,916		596,899			73,066		1,076,795			2,616,643

(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 income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges.

(3)	Total assets are attributable to each segment. 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
	March 29,			March 31,
	2020			2019
	(in thousands)
Semiconductor Test:
Cost of revenues—inventory charge	$	3,026		$	1,174
Industrial Automation:
Restructuring and other—acquisition related expenses and compensation		618			1,261
Corporate and Other:
Restructuring and other—MiR contingent consideration adjustment		(2,878	)		3,003
Restructuring and other—AutoGuide contingent consideration adjustment		(7,142	)		—
Restructuring and other—acquisition related expenses and compensation		741			—