R. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

Teradyne has four operating segments (Semiconductor Test, System Test, Industrial Automation, 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 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. 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 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, 2017, 2016, and 2015 is as follows:


	Semiconductor Test		System Test		Industrial Automation			Wireless Test			Corporate And Eliminations			Consolidated
	(in thousands)
2017
Revenues	$	1,662,549	$	192,135	$	170,056		$	111,866		$	—		$	2,136,606
Income (loss) before taxes (1)(2)		491,361		10,306		8,763			17,350			(3,368	)		524,412
Total assets (3)		597,480		97,018		368,037			59,912			1,987,098			3,109,545
Property additions		87,920		5,976		7,044			4,435			—			105,375
Depreciation and amortization expense		58,901		6,646		25,711			5,392			11,425			108,075
2016
Revenues	$	1,368,169	$	189,846	$	99,031		$	96,204		$	—		$	1,753,250
Income (loss) before taxes (1)(2)		311,939		28,916		(16,783	)		(371,409	)		(7,723	)		(55,060	)
Total assets (3)		557,546		110,361		317,635			62,366			1,714,585			2,762,493
Property additions		70,543		3,788		6,755			4,186			—			85,272
Depreciation and amortization expense		58,087		6,551		26,869			25,921			2,581			120,009
2015
Revenues	$	1,201,530	$	211,584	$	41,892		$	184,572		$	—		$	1,639,578
Income (loss) before taxes (1)(2)		260,154		25,101		(7,574	)		(13,830	)		(10,727	)		253,124
Total assets (3)		610,869		102,547		344,260			427,880			1,063,118			2,548,674
Property additions		79,052		6,228		1,465			3,133			—			89,878
Depreciation and amortization expense		64,415		4,391		14,500			53,440			4,027			140,773

(1)

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

(2)	Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges, goodwill impairment charges 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 accounts:


	For the Year Ended December 31,
	2017		2016		2015
	(in thousands)
Cost of revenues—inventory charge	$	4,606	$	9,656	$	10,508
Restructuring and other—employee severance		1,779		2,860		499
Restructuring and other—impairment of fixed assets		1,124		—		—

Included in the System Test segment are charges and credits in the following accounts:


	For the Year Ended December 31,
	2017		2016			2015
	(in thousands)
Cost of revenues—inventory charge	$	1,918	$	630		$	8,324
Restructuring and other—employee severance		—		(49	)		1,037

Included in the Industrial Automation segment are charges in the following accounts:


	For the Year Ended December 31,
	2017		2016		2015
	(in thousands)
Restructuring and other—employee severance	$	1,414	$	585	$	—
Cost of revenues—inventory step-up (1)		—		—		1,567

(1)	Included in the cost of revenues for the year ended December 31, 2015 is the cost for purchase accounting inventory step-up.

Included in the Wireless Test segment are charges in the following accounts:


	For the Year Ended December 31,
	2017		2016		2015
	(in thousands)
Cost of revenues—inventory charge	$	2,190	$	7,207	$	2,500
Restructuring and other—lease impairment		973		—		—
Restructuring and other—employee severance		—		2,650		—
Goodwill impairment charge		—		254,946		—
Intangible assets impairment charge		—		83,339		—

Included in the Corporate and Eliminations segment are charges and credits in the following accounts:


	For the Year Ended December 31,
	2017			2016			2015
	(in thousands)
Restructuring and other—Universal Robots contingent consideration adjustment	$	7,820		$	15,346		$	5,339
Restructuring and other—impairment of fixed assets and expenses related to Japan earthquake		755			5,051			—
Restructuring and other—employee severance		530			—			—
Restructuring and other—property insurance recovery		(5,064	)		(5,051	)		—
Cost of revenues—pension actuarial (gains) losses		(2,752	)		(1,025	)		8,271
Engineering and development—pension actuarial (gains) losses		(2,456	)		(1,234	)		4,658
Selling and administrative—pension actuarial (gains) losses		(1,416	)		(944	)		4,826
Restructuring and other—ZTEC contingent consideration adjustment		—			—			(1,600	)
Restructuring and other—AIT contingent consideration adjustment		—			550			(1,250	)
Restructuring and other—acquisition costs		—			—			1,104
Other (income) expense, net—gain from the sale of an equity investment		—			—			(5,406	)

Information as to Teradyne’s revenues by country is as follows:


	2017		2016		2015
	(in thousands)
Revenues from customers (1):
Taiwan	$	687,031	$	653,076	$	436,389
China		260,451		174,876		264,898
United States		252,516		221,948		217,386
Korea		206,819		147,882		120,224
Japan		169,093		135,978		128,228
Europe		163,715		117,671		111,903
Malaysia		124,048		103,472		76,707
Philippines		105,850		54,705		96,103
Singapore		101,085		73,172		105,216
Thailand		29,566		43,097		59,104
Rest of the World		36,432		27,373		23,420

	$	2,136,606	$	1,753,250	$	1,639,578

(1)	Revenues attributable to a country are based on location of customer site.

In 2017 and 2016, one customer of Teradyne’s Semiconductor Test segment accounted for 13% and 12 %, respectively, of total consolidated revenues. In 2016 and 2015, a different customer of Teradyne’s Semiconductor Test segment accounted for 12% and 13%, respectively, of total consolidated revenues. Teradyne estimates product demand driven by a single OEM customer, combining direct sales to that customer with sales to the customer’s outsourced semiconductor assembly and test providers (“OSATs”), accounted for approximately 22%, 26%, and 23% of Teradyne’s consolidated revenues in 2017, 2016, and 2015, respectively.

Long-lived assets by geographic area:


	United States		Foreign(1)		Total
	(in thousands)
December 31, 2017	$	198,855	$	69,592	$	268,447
December 31, 2016	$	189,195	$	64,626	$	253,821

(1)	As of December 31, 2017 and 2016, long-lived assets attributable to Singapore were $23.6 million and $31.5 million, respectively.