Segment Information

3 Months Ended

Apr. 02, 2023

Segment Reporting [Abstract]

Segment Information

R. SEGMENT INFORMATION

Teradyne has four reportable segments (Semiconductor Test, System Test, Wireless Test and Robotics). Each of the reportable segments represents 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 Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. 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 are the same as those described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2022.

Segment information for the three months ended April 2, 2023 and April 3, 2022 is as follows:

	Semiconductor Test		System Test		Robotics			Wireless Test		Corporate and Eliminations			Consolidated
	(in thousands)
Three Months Ended April 2, 2023
Revenues	$	415,009	$	74,631	$	89,214		$	38,675	$	—		$	617,529
Income (loss) before income taxes (1)(2)		96,185		15,275		(18,490	)		9,352		(5,238	)		97,084
Total assets (3)		1,386,851		173,669		676,092			87,875		1,058,920			3,383,407
Three Months Ended April 3, 2022
Revenues	$	482,341	$	118,668	$	103,189		$	51,518	$	(346	)	$	755,370
Income (loss) before income taxes (1)(2)		149,705		41,322		(5,098	)		18,619		(24,189	)		180,359
Total assets (3)		1,296,070		187,283		675,560			113,821		1,336,420			3,609,154

(1) Included in Corporate and Eliminations are: interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, legal and environmental fees, severance charges, acquisition related charges and compensation and an expense for the modification of Teradyne’s former chief executive officer’s outstanding equity awards.

(2) Included in income (loss) before taxes are charges 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
	April 2,		April 3,
	2023		2022
	(in thousands)
Semiconductor Test:
Cost of revenues—inventory charge	$	3,768	$	—
Restructuring and other—employee severance		794		—
System Test:
Cost of revenues—inventory charge	$	675		—
Robotics:
Cost of revenues—inventory charge	$	782	$	—
Wireless:
Cost of revenues—inventory charge	$	—	$	877
Corporate and Other:
Selling and administrative - equity modification charge	$	5,889	$	—
Restructuring and other—employee severance		659		—
Restructuring and other—legal settlement charge		—		14,700