Segment Information

6 Months Ended

Jul. 03, 2022

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 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, 2021.

Segment information for the three and six months ended July 3, 2022 and July 4, 2021 is as follows:

	Semiconductor Test		System Test		Industrial Automation			Wireless Test		Corporate and Eliminations			Consolidated
	(in thousands)
Three Months Ended July 3, 2022
Revenues	$	541,348	$	134,702	$	101,055		$	63,854	$	(193	)	$	840,766
Income (loss) before income taxes (1)(2)		177,782		54,042		(6,406	)		25,393		(12,219	)		238,592
Total assets (3)		1,449,878		229,359		644,099			118,445		1,046,645			3,488,426
Three Months Ended July 4, 2021
Revenues	$	833,976	$	104,819	$	92,186		$	54,893	$	(146	)	$	1,085,728
Income (loss) before income taxes (1)(2)		337,302		33,954		(9,837	)		21,472		1,135			384,026
Total assets (3)		1,518,941		146,296		687,022			117,702		1,530,961			4,000,922
Six Months Ended July 3, 2022
Revenues	$	1,023,688	$	253,371	$	204,244		$	115,372	$	(539	)	$	1,596,136
Income (loss) before income taxes (1)(2)		327,487		95,365		(11,504	)		44,012		(36,409	)		418,951
Total assets (3)		1,449,878		229,359		644,099			118,445		1,046,645			3,488,426
Six Months Ended July 4, 2021
Revenues	$	1,362,039	$	237,656	$	172,137		$	95,791	$	(289	)	$	1,867,334
Income (loss) before income taxes (1)(2)		513,670		85,015		(22,804	)		31,088		1,050			608,019
Total assets (3)		1,518,941		146,296		687,022			117,702		1,530,961			4,000,922

(1) Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), acquisition related charges and compensation, pension, intercompany eliminations and for the three and six months ended July 4, 2021, loss on convertible debt conversions.

(2) Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and, for the three and six months ended July 4, 2021, loss on convertible debt conversions.

(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				For the Six Months Ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
	(in thousands)
Semiconductor Test:
Cost of revenues—inventory charge	$	2,071	$	—	$	2,315	$	1,234
Industrial Automation:
Cost of revenues—inventory charge	$	831	$	—	$	1,197	$	1,285
Restructuring and other—acquisition related expenses and compensation		—		—		—		550
Wireless:
Cost of revenues—inventory charge	$	2,099	$	—	$	2,976	$	672
Corporate and Eliminations:
Restructuring and other—other	$	1,500	$	1,700	$	2,000	$	1,846
Restructuring and other—legal settlement charge		—		—		14,700		—
Other (income) expense, net—loss on convertible debt conversions		—		1,175		—		5,244
Restructuring and other—AutoGuide contingent consideration adjustment		—		—		—		(7,227	)
Restructuring and other—acquisition related expenses and compensation		—		—		—		(513	)