Segment Information

3 Months Ended

Apr. 04, 2021

Segment Reporting [Abstract]

Segment Information

S. SEGMENT INFORMATION

Teradyne has four reportable segments (Semiconductor Test, System Test, Industrial Automation and Wireless Test). Each of the reportable segments is also an individual operating segment.

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 and system level 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. 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, 2020.

Segment information for the three months ended April 4, 2021 and March 29, 2020 is as follows:

	Semiconductor Test		System Test		Industrial Automation			Wireless Test		Corporate and Other			Consolidated
	(in thousands)
Three Months Ended April 4, 2021
Revenues	$	528,063	$	132,837	$	79,951		$	40,898	$	(143	)	$	781,606
Income (loss) before income taxes (1)(2)		176,368		51,061		(12,967	)		9,616		(85	)		223,993
Total assets (3)		1,243,358		179,195		672,596			104,367		1,520,201			3,719,717
Three Months Ended March 29, 2020
Revenues	$	484,489	$	116,076	$	60,305		$	43,485	$	—		$	704,355
Income (loss) before income 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

(1) Included in Corporate and Other are: contingent consideration adjustments, loss on convertible debt conversions, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations and acquisition related charges, legal fees and compensation.

(2) Included in income (loss) before taxes are charges and credits related to restructuring and other, loss on convertible debt conversions 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
	April 4, 2021			March 29, 2020
	(in thousands)
Semiconductor Test:
Cost of revenues—inventory charge	$	1,079		$	3,026
Industrial Automation:
Cost of revenues—inventory charge	$	1,221		$	—
Restructuring and other—acquisition related expenses and compensation		—			618
Corporate and Other:
Restructuring and other—AutoGuide contingent consideration adjustment	$	(7,227	)	$	(7,142	)
Other (income) expense, net—loss on convertible debt conversions		4,069			—
Restructuring and other—acquisition related expenses and compensation		(513	)		741
Restructuring and other—MiR contingent consideration adjustment		—			(2,878	)