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Segment Information
 3 Months Ended
Mar. 31, 2013
Segment Information

P. Segment Information

Teradyne has three operating segments (Semiconductor Test, Wireless Test, and Systems Test), 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 design, manufacturing and marketing of wireless test products and services. The Systems Test segment includes operations related to 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 based on several factors, of which the primary financial measure is business segment income 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, 2012. Segment information is as follows:

 

     Semiconductor
Test		      Wireless
Test		     Systems
Test		      Corporate
and
Eliminations		     Consolidated  
     (in thousands)  

Three months ended March 31, 2013:

             

Net revenues

    $ 211,506       $ 33,598      $ 35,263       $ —       $ 280,367   

Income (loss) before income taxes(1)(2)

      13,766         (9,997 )      1,530         (6,725 )      (1,426 ) 

Three months ended April 1, 2012:

             

Net revenues

    $ 267,588       $ 31,328      $ 97,752       $ —       $ 396,668   

Income (loss) before income taxes(1)(2)

      34,998         (12,312 )      21,978         (3,420 )      41,244   

 

(1) Interest income and interest expense and other are included in Corporate and Eliminations.
(2) Included in the income (loss) before income taxes for each of the segments are charges and credits for the three months ended March 31, 2013 and April 1, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows:

Included in the Semiconductor Test segment are charges for the following:

 

     For the Three Months
Ended		  
     March 31,
2013		      April 1,
2012		  
     (in thousands)  

Cost of revenues—provision for excess and obsolete inventory

    $ 213       $ 212   
  

 

 

     

 

 

  

Total

    $ 213       $ 212   
  

 

 

     

 

 

  

 

Included in the Wireless Test segment are charges for the following:

 

     For the Three Months
Ended		  
     March 31, 
2013		      April 1, 
2012		  
     (in thousands)  

Cost of revenues—inventory step-up

    $ —        $ 4,871   

Cost of revenues—provision for excess and obsolete inventory

      2,668         473   
  

 

 

     

 

 

  

Total

    $ 2,668       $ 5,344   
  

 

 

     

 

 

  

Included in the Systems Test segment are charges for the following:

 

     For the Three Months
Ended		  
     March 31, 
2013		      April 1, 
2012		  
     (in thousands)  

Cost of revenues—provision for excess and obsolete inventory

    $ 919       $ 889   

Restructuring and other

      244         —    
  

 

 

     

 

 

  

Total

    $ 1,163       $ 889   
  

 

 

     

 

 

  

Included in Corporate and Eliminations are credits for the following:

 

     For the Three Months
Ended		  
     March 31, 
2013		      April 1, 
2012		  
     (in thousands)  

Restructuring and other

    $  —        $ (1,825 ) 
  

 

 

     

 

 

  

Total

    $ —        $ (1,825 )