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 nine months ended October 1, 2017 and October 2, 2016 is as follows:


	Semiconductor Test		Industrial Automation			System Test			Wireless Test			Corporate and Eliminations			Consolidated
	(in thousands)
*Three Months Ended October 1, 2017*
Revenues	$	396,881	$	40,063		$	35,569		$	30,865		$	—		$	503,378
Income (loss) before income taxes (1)(2)		116,836		3,373			(3,344	)		7,461			3,111			127,437
Total assets (3)		598,925		508,943			100,083			61,206			1,820,170			3,089,327
*Three Months Ended October 2, 2016*
Revenues	$	322,021	$	23,505		$	37,030		$	27,919		$	—		$	410,475
Income (loss) before income taxes (1)(2)		67,710		(4,695	)		1,550			1,049			(5,933	)		59,681
Total assets (3)		522,529		340,030			90,713			65,953			1,346,462			2,365,687
*Nine Months Ended October 1, 2017*
Revenues	$	1,345,560	$	115,672		$	112,147		$	83,812		$	—		$	1,657,191
Income (loss) before income taxes (1)(2)		426,081		(279	)		(11,795	)		13,508			(1,186	)		426,329
Total assets (3)		598,925		508,943			100,083			61,206			1,820,170			3,089,327
*Nine Months Ended October 2, 2016*
Revenues	$	1,097,608	$	65,353		$	139,640		$	70,660		$	—		$	1,373,261
Income (loss) before income taxes (1)(2)		262,127		(16,364	)		20,033			(375,596	)		(4,145	)		(113,945	)
Total assets (3)		522,529		340,030			90,713			65,953			1,346,462			2,365,687

(1)

Included in Corporate and Eliminations are: contingent consideration adjustments, pension and postretirement plans’ actuarial gains (losses), impairment of fixed assets and expenses related to the Japan earthquake, property insurance recovery, interest income, interest expense and net foreign exchange gains (losses).

(2)	Included in income (loss) before income taxes are charges and credits related to restructuring and other, inventory charges, a goodwill impairment charge and an acquired intangible assets impairment charge.

(3)	Total assets are attributable to each segment. 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 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
	(in thousands)
Cost of revenues—inventory charge	$	743	$	2,351	$	3,686	$	8,270
Restructuring and other—employee severance		375		2,047		242		2,798

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


	For the Three Months Ended				For the Nine Months Ended
	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
	(in thousands)
Cost of revenues—inventory charge	$	130	$	—	$	130	$	—
Restructuring and other—employee severance		206		532		1,150		532

Included in the System Test segment 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 1, 2017		October 2, 2016			October 1, 2017		October 2, 2016
	(in thousands)
Cost of revenues—inventory charge	$	251	$	121		$	1,609	$	441
Restructuring and other—employee severance		—		(48	)		—		(48	)

Included in the Wireless Test segment 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 1, 2017			October 2, 2016		October 1, 2017		October 2, 2016
	(in thousands)
Cost of revenues—inventory charge	$	735		$	561	$	1,729	$	6,437
Restructuring and other—lease impairment		(393	)		—		900		—
Goodwill impairment		—			—		—		254,946
Acquired intangible assets impairment		—			—		—		83,339
Restructuring and other—employee severance		—			1,672		31		2,639

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 1, 2017			October 2, 2016		October 1, 2017			October 2, 2016
	(in thousands)
Cost of revenues—pension actuarial losses (gains)	$	—		$	364	$	(664	)	$	(250	)
Selling and administrative—pension actuarial losses (gains)		—			192		(1,094	)		(441	)
Engineering and development—pension actuarial losses (gains)		—			106		(746	)		(509	)
Restructuring and other—Universal Robots contingent consideration adjustment		(286	)		7,973		1,847			9,902
Restructuring and other—property insurance recovery		(5,064	)		—		(5,064	)		(5,051	)
Restructuring and other—expenses related to Japan earthquake and impairment of fixed assets		755			—		755			5,051
Restructuring and other—employee severance		—			—		530			—
Restructuring and other—AIT contingent consideration adjustment		—			—		—			550