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Segment Information | 9 Months Ended
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Oct. 04, 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 nine months ended October 4, 2015 and September 28, 2014 is as follows:
|  | Semiconductor Test |  |  | Wireless Test |  |  | System Test |  |  | Industrial Automation |  |  | Corporate and Eliminations |  |  | Consolidated |
|  | (in thousands) |
Three months ended October 4, 2015: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 325,516 |  |  | $ | 55,359 |  |  | $ | 69,062 |  |  | $ | 16,057 |  |  | $ | — |  |  | $ | 465,994 |
Income (loss) before income taxes (1)(2) |  |  | 73,957 |  |  |  | 2,997 |  |  |  | 13,751 |  |  |  | (4,847 | ) |  |  | 1,550 |  |  |  | 87,408 |
Total assets (3) |  |  | 591,445 |  |  |  | 447,461 |  |  |  | 109,078 |  |  |  | 360,068 |  |  |  | 1,153,832 |  |  |  | 2,661,884 |
Three months ended September 28, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 380,083 |  |  | $ | 54,838 |  |  | $ | 43,089 |  |  | $ | — |  |  | $ | — |  |  | $ | 478,010 |
Income before income taxes (1)(2) |  |  | 91,900 |  |  |  | 2,379 |  |  |  | 5,779 |  |  |  | — |  |  |  | 612 |  |  |  | 100,670 |
Total assets (3) |  |  | 748,499 |  |  |  | 614,911 |  |  |  | 83,769 |  |  |  | — |  |  |  | 1,247,828 |  |  |  | 2,695,007 |
Nine months ended October 4, 2015: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 996,748 |  |  | $ | 152,285 |  |  | $ | 152,320 |  |  | $ | 19,780 |  |  | $ | — |  |  | $ | 1,321,133 |
Income (loss) before income taxes (1)(2) |  |  | 246,627 |  |  |  | (603 | ) |  |  | 10,423 |  |  |  | (6,547 | ) |  |  | 12,081 |  |  |  | 261,981 |
Total assets (3) |  |  | 591,445 |  |  |  | 447,461 |  |  |  | 109,078 |  |  |  | 360,068 |  |  |  | 1,153,832 |  |  |  | 2,661,884 |
Nine months ended September 28, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,063,254 |  |  | $ | 144,747 |  |  | $ | 116,586 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,324,587 |
Income (loss) before income taxes (1)(2) |  |  | 233,770 |  |  |  | (8,477 | ) |  |  | 5,512 |  |  |  | — |  |  |  | (10,616 | ) |  |  | 220,189 |
Total assets (3) |  |  | 748,499 |  |  |  | 614,911 |  |  |  | 83,769 |  |  |  | — |  |  |  | 1,247,828 |  |  |  | 2,695,007 |
(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 Nine Months Ended |
|  | October 4, 2015 |  |  | September 28, 2014 |  |  | October 4, 2015 |  |  | September 28, 2014 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 1,697 |  |  | $ | 4,404 |  |  | $ | 8,637 |  |  | $ | 14,322 |
Restructuring and other |  |  | 194 |  |  |  | — |  |  |  | 499 |  |  |  | — |
Total |  | $ | 1,891 |  |  | $ | 4,404 |  |  | $ | 9,136 |  |  | $ | 14,322 |
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 Nine Months Ended |
|  | October 4, 2015 |  |  | September 28, 2014 |  |  | October 4, 2015 |  |  | September 28, 2014 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 901 |  |  | $ | 1,267 |  |  | $ | 2,077 |  |  | $ | 5,239 |
Restructuring and other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 426 |
Total |  | $ | 901 |  |  | $ | 1,267 |  |  | $ | 2,077 |  |  | $ | 5,665 |
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 Nine Months Ended |
|  | October 4, 2015 |  |  | September 28, 2014 |  |  | October 4, 2015 |  |  | September 28, 2014 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 460 |  |  | $ | 763 |  |  | $ | 8,225 |  |  | $ | 1,944 |
Restructuring and other |  |  | 923 |  |  |  | 225 |  |  |  | 923 |  |  |  | 371 |
Total |  | $ | 1,383 |  |  | $ | 988 |  |  | $ | 9,148 |  |  | $ | 2,315 |
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 Nine Months Ended |
|  | October 4, 2015 |  |  | September 28, 2014 |  |  | October 4, 2015 |  |  | September 28, 2014 |
|  | (in thousands) |
Cost of revenues—inventory step-up (1) |  | $ | 972 |  |  | $ | — |  |  | $ | 1,567 |  |  | $ | — |
Total |  | $ | 972 |  |  | $ | — |  |  | $ | 1,567 |  |  | $ | — |
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 Nine Months Ended |
|  | October 4, 2015 |  |  | September 28, 2014 |  |  | October 4, 2015 |  |  | September 28, 2014 |
|  | (in thousands) |
Restructuring and other—AIT contingent consideration adjustment |  | $ | (1,000 | ) |  | $ | — |  |  | $ | (1,000 | ) |  | $ | — |
Restructuring and other—Universal Robots acquisition costs |  |  | 144 |  |  |  | — |  |  |  | 1,104 |  |  |  | — |
Restructuring and other—ZTEC contingent consideration adjustment |  |  | — |  |  |  | (630 | ) |  |  | (1,600 | ) |  |  | (630 | )
Other (income) expense, net—gain from the sale of an equity investment |  |  | — |  |  |  | — |  |  |  | (5,406 | ) |  |  | — |
Selling and administrative—stock based compensation expense (2) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,598 |
Total |  | $ | (856 | ) |  | $ | (630 | ) |  | $ | (6,902 | ) |  | $ | 5,968 |
(1) | Included in the cost of revenues for the three and nine months ended October 4, 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.”

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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 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 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=51669610&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 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 Reference 8: 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=51669610&loc=d3e8984-108599 Reference 9: 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=51669610&loc=d3e9031-108599 Reference 10: 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=51669610&loc=d3e9054-108599 Reference 11: 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=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 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=51669610&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 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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