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OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION | 62 Months Ended
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Dec. 31, 2012
OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION | S. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION Teradyne has three operating segments (Semiconductor Test, Wireless Test and Systems Test Group), which are its reportable segments. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. The Systems Test Group segment includes operations related to the design, manufacturing and marketing of products and services for military/aerospace instrumentation test, storage test and circuit-board test. 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 using several factors, of which the primary financial measure is business segment income from continuing operations before taxes. The accounting policies of the business segments are the same as those described in Note B: “Accounting Policies”. Segment information for the years ended December 31, 2012, 2011 and 2010 is as follows:
|  | Semiconductor Test |  |  | Wireless Test |  |  | Systems Test Group |  |  | Corporate And Eliminations |  |  | Consolidated |
|  | (in thousands) |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue |  | $ | 1,127,726 |  |  | $ | 286,355 |  |  | $ | 242,669 |  |  | $ | — |  |  | $ | 1,656,750 |
Income (loss) from continuing operations before taxes (1)(2) |  |  | 185,985 |  |  |  | 83,077 |  |  |  | 34,164 |  |  |  | (37,250 | ) |  |  | 265,976 |
Total assets from continuing operations (3) |  |  | 604,127 |  |  |  | 672,048 |  |  |  | 71,116 |  |  |  | 1,082,054 |  |  |  | 2,429,345 |
Property additions (4) |  |  | 96,590 |  |  |  | 7,608 |  |  |  | 5,146 |  |  |  | 9,736 |  |  |  | 119,080 |
Depreciation and amortization expense (4) |  |  | 67,922 |  |  |  | 50,242 |  |  |  | 3,747 |  |  |  | 20,888 |  |  |  | 142,799 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue |  | $ | 1,106,191 |  |  | $ | 28,390 |  |  | $ | 294,480 |  |  | $ | — |  |  | $ | 1,429,061 |
Income (loss) from continuing operations before taxes (1)(2) |  |  | 212,201 |  |  |  | (20,579 | ) |  |  | 51,802 |  |  |  | (29,003 | ) |  |  | 214,421 |
Total assets from continuing operations (3) |  |  | 581,026 |  |  |  | 725,940 |  |  |  | 77,277 |  |  |  | 804,396 |  |  |  | 2,188,639 |
Property additions (4) |  |  | 76,164 |  |  |  | 794 |  |  |  | 4,043 |  |  |  | 5,096 |  |  |  | 86,097 |
Depreciation and amortization expense (4) |  |  | 60,985 |  |  |  | 13,057 |  |  |  | 1,857 |  |  |  | 28,479 |  |  |  | 104,378 |
2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue |  | $ | 1,413,295 |  |  | $ | — |  |  | $ | 152,867 |  |  | $ | — |  |  | $ | 1,566,162 |
Income (loss) from continuing operations before taxes (1)(2) |  |  | 414,994 |  |  |  | — |  |  |  | (8,877 | ) |  |  | (9,770 | ) |  |  | 396,347 |
Total assets from continuing operations (3) |  |  | 611,694 |  |  |  | — |  |  |  | 95,402 |  |  |  | 1,094,077 |  |  |  | 1,801,173 |
Property additions (4) |  |  | 69,935 |  |  |  | — |  |  |  | 3,142 |  |  |  | 2,967 |  |  |  | 76,044 |
Depreciation and amortization expense (4) |  |  | 66,709 |  |  |  | — |  |  |  | 1,854 |  |  |  | 24,953 |  |  |  | 93,516 |
| (1) | Interest income, interest expense and other, and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations.
| (2) | Included in income (loss) from continuing operations before taxes are charges and credits related to restructuring and other, net and inventory charges.
| (3) | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities, unallocated fixed assets of support departments, common facilities and certain other assets.
| (4) | Corporate property additions and depreciation and amortization expense include items attributable to the unallocated fixed assets of support departments and common facilities.
Included in the Semiconductor Test segment are charges and credits in the following accounts:
|  | For the Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Cost of revenues—inventory charge (1) |  | $ | 18,433 |  |  | $ | 10,370 |  |  | $ | 4,521 |
Restructuring and other, net |  |  | 386 |  |  |  | 2,142 |  |  |  | 1,437 |
(1) | Included in the cost of revenues for the years ended December 31, 2012 and 2011 are charges for excess inventory provisions recorded primarily as a result of product transition.
Included in the Systems Test Group segment are charges and credits in the following accounts:
|  | For the Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 4,271 |  |  | $ | 1,090 |  |  | $ | 1,450 |
Restructuring and other, net |  |  | 451 |  |  |  | (300 | ) |  |  | (2,133 | )
Included in the Wireless Test segment are charges and credits in the following accounts:
|  | For the Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Cost of revenues—inventory step-up (1) |  | $ | 6,089 |  |  | $ | 12,178 |  |  |  | — |
Cost of revenues—inventory charge |  |  | 4,145 |  |  |  | 141 |  |  |  | — |
Restructuring and other, net |  |  | 236 |  |  |  | — |  |  |  | — |
(1) | Included in the cost of revenues for the years ended December 31, 2012 and 2011 is the cost for purchase accounting inventory step-up.
Included in the Corporate and Eliminations segment are charges and credits in the following accounts:
|  | For the Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Restructuring and other, net |  | $ | (8,794 | ) |  | $ | 4,901 |  |  | $ | (3,104 | )
Information as to Teradyne’s revenues in different geographical areas is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (in thousands) |
Revenues from customers (1): |  |  |  |  |  |  |  |  |  |  |  |
China |  | $ | 354,076 |  |  | $ | 180,441 |  |  | $ | 136,628 |
Taiwan |  |  | 303,360 |  |  |  | 172,700 |  |  |  | 286,138 |
United States |  |  | 233,573 |  |  |  | 221,895 |  |  |  | 235,171 |
Korea |  |  | 225,099 |  |  |  | 145,958 |  |  |  | 124,738 |
Japan |  |  | 105,981 |  |  |  | 148,699 |  |  |  | 77,518 |
Philippines |  |  | 106,609 |  |  |  | 130,484 |  |  |  | 185,533 |
Europe |  |  | 84,508 |  |  |  | 101,208 |  |  |  | 99,580 |
Singapore |  |  | 80,571 |  |  |  | 90,622 |  |  |  | 145,543 |
Thailand |  |  | 76,069 |  |  |  | 80,539 |  |  |  | 56,978 |
Malaysia |  |  | 71,151 |  |  |  | 138,107 |  |  |  | 207,471 |
Rest of the World |  |  | 15,753 |  |  |  | 18,408 |  |  |  | 10,864 |
|  | $ | 1,656,750 |  |  | $ | 1,429,061 |  |  | $ | 1,566,162 |
(1) | Revenues are attributable to geographic areas based on location of customer site.
In 2012, one customer accounted for 10% of total consolidated revenues. In 2011 and 2010, no customer accounted for 10% or more of total consolidated revenues. Long-lived assets by geographic area:
|  | United States |  |  | Foreign Countries |  |  | Total |
|  | (in thousands) |
December 31, 2012 |  | $ | 211,422 |  |  | $ | 54,360 |  |  | $ | 265,782 |
December 31, 2011 |  |  | 192,336 |  |  |  | 39,871 |  |  |  | 232,207 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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