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Operating Segment, Geographic and Significant Customer Information | 12 Months Ended
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Dec. 31, 2015
Operating Segment, Geographic and Significant Customer Information | Q. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION Teradyne has four operating segments (Semiconductor Test, System Test, Wireless 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 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 Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. 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 using several factors, of which the primary financial measure is business segment income (loss) from 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, 2015, 2014 and 2013 is as follows:
|  | Semiconductor Test |  |  | Wireless Test |  |  | System Test |  |  | Industrial Automation |  |  | Corporate And Eliminations |  |  | Consolidated |
|  | (in thousands) |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,201,530 |  |  | $ | 184,572 |  |  | $ | 211,584 |  |  | $ | 41,892 |  |  | $ | — |  |  | $ | 1,639,578 |
Income (loss) before taxes (1)(2) |  |  | 260,154 |  |  |  | (13,830 | ) |  |  | 25,101 |  |  |  | (7,574 | ) |  |  | (10,727 | ) |  |  | 253,124 |
Total assets (3) |  |  | 610,869 |  |  |  | 427,880 |  |  |  | 102,547 |  |  |  | 344,260 |  |  |  | 1,063,118 |  |  |  | 2,548,674 |
Property additions |  |  | 79,052 |  |  |  | 3,133 |  |  |  | 6,228 |  |  |  | 1,465 |  |  |  | — |  |  |  | 89,878 |
Depreciation and amortization expense |  |  | 64,415 |  |  |  | 53,440 |  |  |  | 4,390 |  |  |  | 14,500 |  |  |  | 4,027 |  |  |  | 140,772 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,300,790 |  |  | $ | 184,535 |  |  | $ | 162,499 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,647,824 |
Income (loss) before taxes (1)(2) |  |  | 255,803 |  |  |  | (116,196 | ) |  |  | 12,116 |  |  |  | — |  |  |  | (56,347 | ) |  |  | 95,376 |
Total assets (3) |  |  | 580,501 |  |  |  | 478,974 |  |  |  | 95,105 |  |  |  | — |  |  |  | 1,383,940 |  |  |  | 2,538,520 |
Property additions |  |  | 159,783 |  |  |  | 3,730 |  |  |  | 5,469 |  |  |  | — |  |  |  | — |  |  |  | 168,982 |
Depreciation and amortization expense |  |  | 84,990 |  |  |  | 53,308 |  |  |  | 5,399 |  |  |  | — |  |  |  | 8,847 |  |  |  | 152,544 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,023,041 |  |  | $ | 251,871 |  |  | $ | 153,021 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,427,933 |
Income before taxes (1)(2) |  |  | 153,797 |  |  |  | 23,153 |  |  |  | 3,115 |  |  |  | — |  |  |  | 21,857 |  |  |  | 201,922 |
Total assets (3) |  |  | 632,840 |  |  |  | 645,001 |  |  |  | 79,983 |  |  |  | — |  |  |  | 1,272,000 |  |  |  | 2,629,824 |
Property additions |  |  | 94,303 |  |  |  | 5,358 |  |  |  | 7,070 |  |  |  | — |  |  |  | — |  |  |  | 106,731 |
Depreciation and amortization expense |  |  | 72,472 |  |  |  | 51,675 |  |  |  | 5,180 |  |  |  | — |  |  |  | 21,360 |  |  |  | 150,687 |
(1) | Interest income, interest expense, other (income) expense, net, contingent consideration adjustments and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations.
(2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges.
(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 accounts:
|  | For the Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 10,508 |  |  | $ | 14,389 |  |  | $ | 5,218 |
Restructuring and other |  |  | 499 |  |  |  | 490 |  |  |  | 1,016 |
Included in the System Test segment are charges in the following accounts:
|  | For the Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 8,324 |  |  | $ | 2,125 |  |  | $ | 4,168 |
Restructuring and other |  |  | 1,037 |  |  |  | 742 |  |  |  | 1,431 |
Included in the Wireless Test segment are charges in the following accounts:
|  | For the Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 2,500 |  |  | $ | 5,679 |  |  | $ | 7,206 |
Restructuring and other |  |  | — |  |  |  | 565 |  |  |  | 82 |
Goodwill impairment charge |  |  | — |  |  |  | 98,897 |  |  |  | — |
Included in the Industrial Automation segment are charges in the following account:
|  | For the Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
Cost of revenues—inventory step-up (1) |  | $ | 1,567 |  |  | $ | — |  |  | $ | — |
(1) | Included in the cost of revenues for the years ended December 31, 2015 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, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
Restructuring and other—Universal Robots contingent consideration adjustment |  | $ | 5,339 |  |  | $ | — |  |  | $ | — |
Restructuring and other—ZTEC contingent consideration adjustment |  |  | (1,600 | ) |  |  | (630 | ) |  |  | — |
Restructuring and other—AIT contingent consideration adjustment |  |  | (1,250 | ) |  |  | — |  |  |  | — |
Restructuring and other—acquisition costs |  |  | 1,104 |  |  |  | 372 |  |  |  | — |
Restructuring and other |  |  | — |  |  |  | 198 |  |  |  | (449 | )
Other (income) expense, net—gain from the sale of an equity investment |  |  | (5,406 | ) |  |  | — |  |  |  | (34,212 | )
Selling and administrative—stock based compensation expense (1) |  |  | — |  |  |  | 6,598 |  |  |  | — |
(1) | Expense related to the January 2014 retirement of Teradyne’s former chief executive officer; see Note N: “Stock-Based Compensation.”
Information as to Teradyne’s revenues by country is as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
Revenues from customers (1): |  |  |  |  |  |  |  |  |  |  |  |
Taiwan |  | $ | 436,389 |  |  | $ | 495,942 |  |  | $ | 265,472 |
China |  |  | 264,898 |  |  |  | 292,145 |  |  |  | 323,564 |
United States |  |  | 217,386 |  |  |  | 213,104 |  |  |  | 230,178 |
Japan |  |  | 128,228 |  |  |  | 63,761 |  |  |  | 81,806 |
Korea |  |  | 120,224 |  |  |  | 145,608 |  |  |  | 119,286 |
Europe |  |  | 111,903 |  |  |  | 111,043 |  |  |  | 90,797 |
Singapore |  |  | 105,216 |  |  |  | 119,421 |  |  |  | 114,765 |
Philippines |  |  | 96,103 |  |  |  | 68,662 |  |  |  | 63,392 |
Malaysia |  |  | 76,707 |  |  |  | 83,910 |  |  |  | 86,900 |
Thailand |  |  | 59,104 |  |  |  | 44,117 |  |  |  | 32,209 |
Rest of the World |  |  | 23,420 |  |  |  | 10,111 |  |  |  | 19,564 |
|  | $ | 1,639,578 |  |  | $ | 1,647,824 |  |  | $ | 1,427,933 |
(1) | Revenues attributable to a country are based on location of customer site.
In 2015, one customer of Teradyne’s Semiconductor Test segment accounted for 13% of total consolidated revenues. In 2014, no single customer accounted for more than 10% of total consolidated revenues. In 2013, one customer of Teradyne’s Wireless Test and Semiconductor Test segments, accounted for 12% of total consolidated revenues. Long-lived assets by geographic area:
|  | United States |  |  | Foreign(1) |  |  | Total |
|  | (in thousands) |
December 31, 2015 |  | $ | 198,424 |  |  | $ | 74,990 |  |  | $ | 273,414 |
December 31, 2014 |  | $ | 206,334 |  |  | $ | 122,704 |  |  | $ | 329,038 |
(1) | As of December 31, 2015 and 2014, long-lived assets attributable to Singapore were $39.9 million and $99.2 million, respectively.

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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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