XML 32 R25.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information
 6 Months Ended
Jul. 05, 2015
Segment Information

R. Segment Information

Teradyne has four operating segments (Semiconductor Test, Wireless Test, System Test and Industrial Automation), 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 System Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace instrumentation test, storage test and circuit-board test. The Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robots. 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 in effect are described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2014, unless updated in this form 10-Q, where applicable.

Segment information for the three and six months ended July 5, 2015 and June 29, 2014 is as follows:

 

    Semiconductor
Test		     Wireless
Test		     System
Test		     Industrial
Automation		     Corporate
and
Eliminations		     Consolidated  
    (in thousands)  

Three months ended July 5, 2015:

            

Revenues

   $ 400,315      $ 62,879      $ 45,822      $ 3,723      $ —       $ 512,739   

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

     129,546        6,841        (4,333 )      (1,700 )      1,782        132,136   

Total assets (3)

     649,087        485,857        95,544        358,276        1,104,043        2,692,807   

Three months ended June 29, 2014:

            

Revenues

   $ 421,434      $ 68,699      $ 35,434      $ —       $ —       $ 525,567   

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

     107,270        14,229        (715 )      —          608        121,392   

Total assets (3)

     747,492        638,012        71,644        —          1,173,515        2,630,663   

Six months ended July 5, 2015:

            

Revenues

   $ 671,232      $ 96,927      $ 83,258      $ 3,723      $ —       $ 855,140   

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

     172,671        (3,600 )      (3,328 )      (1,700 )      10,531        174,574   

Total assets (3)

     649,087        485,857        95,544        358,276        1,104,043        2,692,807   

Six months ended June 29, 2014:

            

Revenues

   $ 683,171      $ 89,909      $ 73,497      $ —       $ —       $ 846,577   

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

     141,870        (10,856 )      (267 )      —          (11,228 )      119,519   

Total assets (3)

     747,492        638,012        71,644        —          1,173,515        2,630,663   

 

(1) Interest income, interest expense, and other (income) expense, net are included in Corporate and Eliminations.
(2) Included in the income (loss) before income taxes for each of the segments are charges related to inventory and other.
(3) Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets.

 

Included in the Semiconductor Test segment are charges in the following line items in the statements of operations:

 

     For the Three Months
Ended		      For the Six Months
Ended		  
     July 5, 
2015		      June 29, 
2014		      July 5, 
2015		      June 29, 
2014		  
     (in thousands)  

Cost of revenues—inventory charge

    $ 6,409       $ 3,713       $ 6,940       $ 9,918   

Restructuring and other

      305         —           305         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 6,714       $ 3,713       $ 7,245       $ 9,918   
  

 

 

     

 

 

     

 

 

     

 

 

  

Included in the Wireless Test segment are charges in the following line items in the statements of operations:

 

     For the Three Months
Ended		      For the Six Months
Ended		  
     July 5,
2015		      June 29,
2014		      July 5,
2015		      June 29,
2014		  
     (in thousands)  

Cost of revenues—inventory charge

    $ 330       $ 879       $ 1,176       $ 3,972   

Restructuring and other

      —           426         —           426   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 330       $ 1,305       $ 1,176       $ 4,398   
  

 

 

     

 

 

     

 

 

     

 

 

  

Included in the System Test segment are charges in the following line items in the statements of operations:

 

     For the Three Months
Ended		      For the Six Months
Ended		  
     July 5,
2015		      June 29,
2014		      July 5,
2015		      June 29,
2014		  
     (in thousands)  

Cost of revenues—inventory charge

    $ 7,702       $ 440       $ 7,765       $ 1,181   

Restructuring and other

      —           146         —           146   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 7,702       $ 586       $ 7,765       $ 1,327   
  

 

 

     

 

 

     

 

 

     

 

 

  

Included in the Industrial Automation segment are charges in the following line item in the statements of operations:

 

     For the Three Months
Ended		      For the Six Months
Ended		  
     July 5,
2015		      June 29,
2014		      July 5,
2015		      June 29,
2014		  
     (in thousands)  

Cost of revenues—inventory step-up (1)

    $ 595       $ —        $ 595       $ —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 595       $ —        $ 595       $ —    
  

 

 

     

 

 

     

 

 

     

 

 

  

 

Included in Corporate and Eliminations 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 5,
    2015    		     June 29,
    2014    		      July 5,
2015		     June 29,
2014		  
     (in thousands)  

Restructuring and other—ZTEC contingent consideration adjustment

    $ (1,600 )    $ —         $ (1,600 )    $ —     

Other (income) expense, net—gain from the sale of an equity investment

      (624 )      —           (5,406 )      —     

Restructuring and other—Universal Robots acquisition costs

      960        —           960        —     

Selling and administrative—stock-based compensation expense (2)

      —          —           —          6,598   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total

    $ (1,264 )    $ —         $ (6,046 )    $ 6,598   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

(1) Included in the cost of revenues for the three and six months ended July 5, 2015 is the cost for purchase accounting inventory step-up.
(2) Expense related to the January 2014 retirement of Teradyne’s former chief executive officer; see Note J: “Stock-Based Compensation”.