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Segment Information | 6 Months Ended
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Jul. 02, 2017
Segment Information | R. SEGMENT INFORMATION Teradyne has four operating segments (Semiconductor Test, Industrial Automation, System Test and Wireless 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 Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robots. 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. 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 (loss) 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, 2016. Segment information for the three and six months ended July 2, 2017 and July 3, 2016 is as follows:
|  | Semiconductor Test |  |  | Industrial Automation |  |  | System Test |  |  | Wireless Test |  |  | Corporate and Eliminations |  |  | Consolidated |
|  | (in thousands) |
Three Months Ended July 2, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 593,152 |  |  | $ | 39,337 |  |  | $ | 36,732 |  |  | $ | 27,680 |  |  | $ | — |  |  | $ | 696,901 |
Income (loss) before income taxes (1)(2) |  |  | 211,278 |  |  |  | (1,081 | ) |  |  | (5,692 | ) |  |  | 4,514 |  |  |  | (2,142 | ) |  |  | 206,877 |
Total assets (3) |  |  | 766,395 |  |  |  | 349,023 |  |  |  | 108,083 |  |  |  | 62,900 |  |  |  | 1,743,824 |  |  |  | 3,030,225 |
Three Months Ended July 3, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 435,323 |  |  | $ | 25,102 |  |  | $ | 48,940 |  |  | $ | 22,427 |  |  | $ | — |  |  | $ | 531,792 |
Income (loss) before income taxes (1)(2) |  |  | 121,163 |  |  |  | (4,501 | ) |  |  | 8,992 |  |  |  | (356,505 | ) |  |  | 34 |  |  |  | (230,817 | )
Total assets (3) |  |  | 731,394 |  |  |  | 346,290 |  |  |  | 91,374 |  |  |  | 61,618 |  |  |  | 1,177,182 |  |  |  | 2,407,858 |
Six Months Ended July 2, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 948,679 |  |  | $ | 75,610 |  |  | $ | 76,578 |  |  | $ | 52,947 |  |  | $ | — |  |  | $ | 1,153,814 |
Income (loss) before income taxes (1)(2) |  |  | 309,244 |  |  |  | (3,652 | ) |  |  | (8,451 | ) |  |  | 6,046 |  |  |  | (4,294 | ) |  |  | 298,893 |
Total assets (3) |  |  | 766,395 |  |  |  | 349,023 |  |  |  | 108,083 |  |  |  | 62,900 |  |  |  | 1,743,824 |  |  |  | 3,030,225 |
Six Months Ended July 3, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 775,588 |  |  | $ | 41,848 |  |  | $ | 102,610 |  |  | $ | 42,741 |  |  | $ | — |  |  | $ | 962,787 |
Income (loss) before income taxes (1)(2) |  |  | 194,417 |  |  |  | (11,669 | ) |  |  | 18,484 |  |  |  | (376,645 | ) |  |  | 1,788 |  |  |  | (173,625 | )
Total assets (3) |  |  | 731,394 |  |  |  | 346,290 |  |  |  | 91,374 |  |  |  | 61,618 |  |  |  | 1,177,182 |  |  |  | 2,407,858 |
(1) | Interest income, interest expense, contingent consideration adjustments, pension and postretirement plan actuarial gains and other income (expense) are included in Corporate and Eliminations.
(2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges, goodwill impairment charges and acquired intangible assets impairment charge.
(3) | Total business assets are 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 and credits in the following line items in the statements of operations:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | July 2, 2017 |  |  | July 3, 2016 |  |  | July 2, 2017 |  |  | July 3, 2016 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 1,624 |  |  | $ | 2,234 |  |  | $ | 2,943 |  |  | $ | 5,919 |
Restructuring and other—employee severance |  |  | 132 |  |  |  | 337 |  |  |  | (133 | ) |  |  | 751 |
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 2, 2017 |  |  | July 3, 2016 |  |  | July 2, 2017 |  |  | July 3, 2016 |
|  | (in thousands) |
Restructuring and other—employee severance |  |  | 321 |  |  |  | — |  |  |  | 945 |  |  |  | — |
Included in the System Test segment are charges in the following line item in the statements of operations:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | July 2, 2017 |  |  | July 3, 2016 |  |  | July 2, 2017 |  |  | July 3, 2016 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 473 |  |  | $ | 237 |  |  | $ | 1,358 |  |  | $ | 320 |
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 2, 2017 |  |  | July 3, 2016 |  |  | July 2, 2017 |  |  | July 3, 2016 |
|  | (in thousands) |
Cost of revenues—inventory charge |  | $ | 472 |  |  | $ | 5,271 |  |  | $ | 994 |  |  | $ | 5,876 |
Restructuring and other—lease impairment |  |  | — |  |  |  | — |  |  |  | 1,313 |  |  |  | — |
Goodwill impairment |  |  | — |  |  |  | 254,946 |  |  |  | — |  |  |  | 254,946 |
Acquired intangible assets impairment |  |  | — |  |  |  | 83,339 |  |  |  | — |  |  |  | 83,339 |
Restructuring and other—employee severance |  |  | — |  |  |  | 967 |  |  |  | — |  |  |  | 967 |
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 2, 2017 |  |  | July 3, 2016 |  |  | July 2, 2017 |  |  | July 3, 2016 |
|  | (in thousands) |
Restructuring and other—Universal Robots contingent consideration adjustment |  | $ | 1,499 |  |  | $ | 755 |  |  | $ | 2,133 |  |  | $ | 1,928 |
Restructuring and other—employee severance |  |  | 325 |  |  |  | — |  |  |  | 530 |  |  |  | — |
Restructuring and other—impairment of fixed assets and expenses related to Japan earthquake |  |  | — |  |  |  | 5,051 |  |  |  | — |  |  |  | 5,051 |
Restructuring and other—property insurance recovery and proceeds |  |  | — |  |  |  | (5,051 | ) |  |  | — |  |  |  | (5,051 | )
Restructuring and other—AIT contingent consideration adjustment |  |  | — |  |  |  | 550 |  |  |  | — |  |  |  | 550 |

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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